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- Revenues have risen 164% to $3,709,828 for the nine months ended Sept. 30, 2021 from $1,404,360 during the same period in
2020
- The number of providers in our networks has grown to 60
practitioners as of Sept. 30, 2021,
from 35 in the year ago period
- Proud to announce respected healthcare and financial
services industry veterans to the CareSpan Health
Board
- Implementing cost restructuring initiatives to generate
annualized savings of about $1
million
VANCOUVER, BC, Nov. 29, 2021 /CNW/ - CareSpan Health,
Inc. (formerly Dynamo Capital Corp.) (TSXV: CSPN)
("CareSpan" or the "Company"), the
'Clinic-in-the-Cloud' leader addressing the shortage in primary
care and improving the delivery of chronic and urgent care, as well
as mental health, today reported financial results for the three
and nine months ended September 30,
2021. Unless otherwise stated, all amounts are in US
dollars.
"CareSpan delivered solid revenue growth for Q3 and for the nine
months ending September 30, 2021. Our
year-to-date revenues have risen 164% year-over-year, which is a
testament to the strength of our team and technology" said
Rembert de Villa, CareSpan's CEO.
"We are tackling a very big problem in the U.S. – the widening
primary care physician shortage and the escalating cost of chronic
care – through our pioneering focus on enabling Nurse Practitioners
and other clinicians. I am pleased by our ability to deliver
healthy growth while completing our recent capital raise and TSXV
listing. We are focused on capturing revenue from recently-obtained
contracts and reducing/controlling our expense base, as we sharpen
our focus toward achieving strong growth in 2022 and beyond".
Third Quarter 2021 Financial Highlights
- Third quarter 2021 revenues were $1.4
million, which represents a 177% increase from the
$0.5 million in revenues reported for
the third quarter of 2020.
- Adjusted EBITDA loss (EBITDA less one-time expenses) was
reported at $2,211,149 for
year-to-date September 30, 2021 and
$978,682 for September 31, 2020.
- IFRS net loss for the third quarter of 2021 was reported at
$1,923,079, compared to $1,624,324 in the third quarter of 2020.
- The Company's cash balance was $212,445 as of September
30, 2021, compared to $1,474,177 at year-end 2020. This does not
include the impact of the recent capital raise, which closed
subsequent to quarter end.
Close of Qualifying Transaction
- On November 24, 2021, CareSpan
announced the closing of its previously announced merger
transaction (the "Qualifying Transaction").
- Concurrent with the completion of the Qualifying Transaction,
CareSpan raised aggregate gross proceeds in the amount of
C$2,297,947.40 through the issuance
of an aggregate of 3,282,782 subscription receipts at a price of
C$0.70 per subscription receipt.
- The common shares of the Company commenced trading on the TSX
Venture Exchange on November 26, 2021
under the symbol "CSPN".
Restructuring Plan
CareSpan is implementing a cost reduction plan that will see the
Company generate about $1,000,000 in
annualized savings. "We believe that this near-term adjustment in
our cost structure is a necessary step at this time to free up cash
and position the Company for long-term success", said Rembert de Villa. "The restructuring will allow
us to sharpen our focus on achieving strong growth for 2022".
CareSpan intends to focus its cost reduction on streamlining
general & administrative and research & development. "With
our technology infrastructure firmly in place, we expect to
accelerate our top line growth with judicious investments in sales
& marketing despite the overall reduction in expenses", said de
Villa.
Outlook
"CareSpan is in a unique position to address an enormous problem
in the US healthcare system, the shortage of primary care and the
escalating cost of chronic care. Nurse practitioners are being
recognized by more and more states as an important solution to this
problem and CareSpan is one of the few companies to have designed
its 'Clinic-in-the-Cloud' offering to equip Nurse Practitioners and
other clinicians with cost-effective, integrated digital tools
necessary to deliver the best care", said de Villa. "We are eager
to re-balance our cost structure and drive revenue growth for 2022
and beyond".
Board Additions
CareSpan is pleased to announce the additions of James Becker and Thomas
Astle to the Board of Directors. Mr. Becker and Mr. Astle
are joined by current board members, John
Reardon (Chairman), Rembert de
Villa, John Reardon, Dr.
Terry Knapp, and Holger Micheel-Sprenger. "We are extremely proud
to have complemented our existing Board of Directors with
Jim Becker, who brings very deep
healthcare business expertise to our company, and Tom Astle, with his decades of capital markets
expertise in Canada," said de
Villa.
James Becker
Mr. Becker brings to CareSpan insight and expertise from a
distinguished career in health insurance operations and services.
Since 2008, he held multiple executive roles at UnitedHealth Group
(NYSE: UNH) with extensive experience leading multi-billion-dollar
lines of business. He was Chief Operating Officer of
UnitedHealthcare's Medicare and Retirement business. His most
recent role was President of Optum Global Solutions (also part of
the UnitedHealth Group), where he led a team of over 40,000
professionals delivering services and technology in healthcare
globally.
Thomas Astle
Mr. Astle is currently a Director with Longevity Funds
International Inc. a developer of investment products. Prior to
this, he was the Chief Investment Officer of Difference Capital
Financial Inc., a Toronto Stock Exchange listed strategic
investment company. He brings years of experience in equity
research and has been an analyst for most of his career. Prior to
working for Difference Capital Financial Inc., Tom ran research
departments for six years at Byron Capital Markets Inc. and Dundee
Securities Inc. He holds CFA, P.Eng. and ICD.D designations.
Early Warning Report
The transaction that triggered the requirement to file an early
warning report was the Qualifying Transaction, as more fully
described in the Filing Statement filed on the Company's SEDAR
profile. The early warning report dated on November 29, 2021 with respect to the below
shareholder was filed under the Company's profile on SEDAR at
www.sedar.com.
Rembert de Villa
Pursuant to the terms of the Qualifying Transaction,
Rembert de Villa with an address for
service at 105 East 34th Street, New
York, New York, United States of
America, acquired 4,994,857 shares of the Company ("RI
Shares") on November 17, 2021, in
exchange for securities of CareSpan Holdings, Inc. previously held
by Rembert de Villa on the same
basis as all other prior security holders of CareSpan Holdings,
Inc. Rembert de Villa is the Chief
Executive Officer and Vice-Chairman of the board of directors of
the Company.
The 4,994,857 RI Shares held by Rembert
de Villa represent approximately 18.5% of the issued and
outstanding common shares of CareSpan on a non-fully diluted basis
as of November 29, 2021. Prior to the
Qualifying Transaction, Rembert de
Villa did not have ownership or control of any securities of
the Company. The RI Shares acquired by Rembert de Villa were issued from treasury
pursuant to the Qualifying Transaction for deemed consideration per
RI Share of $0.70, for an aggregate
deemed consideration paid of approximately C$3,496,399.90.
Rembert de Villa holds the RI
Shares for investment purposes and does not have any current
intentions to increase or decrease his beneficial ownership or
control or direction over any additional securities of the Company.
As disclosed in the Filing Statement, the RI Shares held by
Rembert de Villa (the "Escrowed
Securities") are subject to a surplus security escrow agreement
in accordance with Policy 5.4 – Escrow, Vendor Consideration and
Resale Restrictions of the Exchange ("Escrow Agreement")
and are also subject to a lock-up agreement as described in the
Filing Statement. Upon release of the Escrowed Securities from
escrow pursuant to the Escrow Agreement, Rembert de Villa may, from time to time and
depending on market and other conditions, acquire additional RI
Shares and/or other equity, debt or other securities or instruments
of the Company in the open market or otherwise, and reserves the
right to dispose of any or all of the securities in the open market
or otherwise at any time and from time to time, and to engage in
similar transactions with respect to the securities, the whole
depending on market conditions, the business and prospects of the
Company and other relevant factors (in accordance with the terms of
the Escrow Agreement and the lock-up agreement).
About CareSpan Health, Inc.
CareSpan is a healthcare technology and services company.
CareSpan, with its head office in British
Columbia, is the parent company of the CareSpan group, which
holds a 100% interest in its operating subsidiary, CareSpan
Holdings, Inc., a Delaware
incorporated company.
CareSpan's proprietary 'Clinic-in-the Cloud' is a clinical
workflow driven platform designed by doctors that integrates remote
patient monitoring, diagnostic tools, the patient's electronic
health record, care collaboration capabilities, patient engagement
and e-prescribing and lab ordering. CareSpan's platform seamlessly
supports both in-person and virtual/telehealth care. CareSpan is
using this platform combined with essential business services to
build provider networks across the U.S. that deliver primary and
chronic care, and urgent care as well as behavioral health
care.
Forward-Looking Statements
Information set forth in this news release contains
forward-looking statements that are based on assumptions as of the
date of this news release. These statements reflect management's
current estimates, beliefs, intentions and expectations. They are
not guarantees of future performance. The Company cautions that all
forward-looking statements are inherently uncertain and that actual
performance may be affected by a number of material factors, many
of which are beyond the Company's control. Such factors include,
among other things: risks and uncertainties relating to general
business, economic, competitive, political and social
uncertainties; and the delay or failure to receive board,
shareholder or regulatory approvals. Accordingly, actual and future
events, conditions and results may differ materially from the
estimates, beliefs, intentions and expectations expressed or
implied in the forward-looking information. Except as required
under applicable securities legislation, the Company undertakes no
obligation to publicly update or revise forward-looking
information.
The forward-looking statements contained in this news release
are made as of the date of this news release. Except as
required by law, the Company disclaims any intention and assumes no
obligation to update or revise any forward-looking statements,
whether as a result of new information, future events or
otherwise.
Neither the TSX Venture Exchange nor its Regulation
Service Provider (as that term is defined in the policies of the
TSX Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Related Links
https://www.carespanhealth.com
SOURCE CareSpan Health, Inc.