/NOT FOR DISTRIBUTION TO
The Company thanks its shareholders for their continued support. The consent letters for the Business provided by shareholders re-affirm the confidence the Company's shareholders have in the ability of the Company's board and management team to complete and advance CareSpan's proposed venture with ChopraX.
The Company is pleased to announce the non-brokered private placement offering (the "Offering") of units of the Company (the "Units") at a price of
The gross proceeds raised from the Offering will be used for the Business and general corporate and working capital purposes. The closing of the Offering is expected to occur on or prior to
Under the Offering, the Units may be offered to: (i) Canadian residents; (ii)
The Company is also pleased to announce that American Advanced Practice Network ("American-APN"), a CareSpan professional corporation, has been awarded an additional contract to conduct assessments for military servicemembers in multiple states and locations across the United States (the "Contract"). American-APN providers across
American-APN clinicians will work with servicemembers as part of the Reserve Health Readiness Program. Patients will include current military reservists, active military servicemembers in certain locations, and certain civilians covered by the Contract. These routine examinations support medical readiness by ensuring that each patient meets the medical standards and requirements to safely and effectively continue their service.
Since 2021, American-APN providers have worked with over 3,000 veterans to assess and document service-related conditions. "CareSpan is proud to compassionately support Veterans by enabling them to receive the care and compensation they are entitled to," said
Nurse practitioners who are already paneled to complete the veterans' examinations are eligible for training and participation under the Contract. At scale, the Contract is expected to contribute growth for CareSpan and its networks. The Contract is a result of the Company's strategic pivot to higher margin services that can yield sustainable growth.
The Company experienced a recent decrease in revenue from one of its major nurse practitioner practices. However, the margins from this revenue stream have been relatively low. CareSpan and its networks are currently undergoing a strategic structural transformation, focusing on higher-margin services that may yield sustainable and profitable growth.
Nurse practitioners currently in the Company's network are eligible to be trained and participate under the Contract to conduct military personnel and reservist examinations. The Contract is expected to contribute to the Company's growth trajectory at scale. Furthermore, the Company is actively recruiting and in the process of onboarding several new providers, currently completing their credentialing, to strengthen CareSpan's network and capture new revenue.
The Contract is aimed at reservists and active-duty military personnel, along with the Business, are important elements of the Company's strategic pivot. These new revenue initiatives are expected to diversify the Company's revenue sources away from other recently decreasing revenue sources of the Company, and more importantly, potentially positively contribute to the Company's profit margins over time. CareSpan is focused on implementing these changes toward building a business with profitable long-term growth CareSpan and its affiliated networks.
The board of directors of CareSpan (the "Board") is also pleased to announce the appointment of
Darrell joined CareSpan in
"I am honored to have the mandate from Board to lead the growth of CareSpan in the coming years," said
Darrell joined CareSpan with more than 25 years of experience in healthcare system leadership, working with providers and system leadership to advance clinical care and technology adoption. Darrell is the former Vice-President of Information Technology, Chief Information Officer and Chief Medical Information Officer at
Darrell began his career as a physical therapist and clinical department leader, and brings a patient centered and provider's perspective to technology planning and deployment. His move from clinical systems leadership to technology came in 2010 when he was asked to lead large electronic medical record ("EMR") implementations and technology projects. Since that time, he has successfully led numerous technology initiatives including analytics and decision support, revenue cycle, clinical documentation improvement, EMR optimization, interoperability, and information exchange. Darrell has a strong history as a trusted advisor and thought leader among his peers.
Darrell holds a Master of Science degree in Physical Therapy from Andrews University, a Bachelor of Science in Anatomy and Physiology, and a Bachelor of Science in Psychology from
CareSpan is a healthcare technology and services company that has developed and deployed a unique, proprietary integrated digital care platform, the
Clinic-in-the-Cloud is a trademark of
ON BEHALF OF THE BOARD OF DIRECTORS:
Director and Chief Executive Officer
For more information, visit: www.carespanhealth.com
Forward-Looking Statements Disclaimer and Reader Advisory
This press release contains forward-looking statements. Forward-looking statements can be identified by the use of words such as, "subject to", or variations of such words and phrases or state that certain actions, events or results "may" or "will" be taken, occur or be achieved. Forward-looking statements in this press release include statements regarding: the setting-up of the Business, the completion of the Offering, the receipt of the regulatory approvals, the Closing Date of the Offering, the use of proceeds from the Offering, the Company's and ChopraX's intention to reach more people through the Business via integrative care of the Business, the expectation that the Contract will contribute to profitable growth for CareSpan, the decrease in revenue from the nurse practitioner practice will remain relatively low; CareSpan's strategic structural transformation will result in higher-margin services that can yield sustainable and profitable growth, the Contract is expected to contribute to the Company's growth trajectory at scale; the recruitment of new providers; the Contract and other revenue initiatives may offset the recent revenue downturn and enhance CareSpan's profit margins, and the Company's changes will build a profitable business. These forward-looking statements are based on assumptions, including the development and successful launch of the Business, receipt of the applicable approvals for the proposed Business with ChopraX, the execution of the Business strategy by management of the Company, no adverse changes in the regulatory regime applicable to the Business or the Company, the satisfaction of all conditions to the Definitive Agreement, and the completion of the Offering. The actual results may be materially different from any future expectations expressed or implied by the forward-looking statements. The forward-looking statements can be affected by known and unknown risks, uncertainties and other factors, including, but not limited to, the equity markets generally, a failure to obtain the necessary approval from the TSXV or shareholders of the Company (if applicable), the inability of management to execute its strategy as it comes to the Business, and reliance on key personnel. Accordingly, readers should not place undue reliance on forward-looking statements.
Except as required by law, CareSpan undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.
Trading in the securities of the Company should be considered highly speculative.
Neither the
SOURCE
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