Toronto, Ontario--(Newsfile Corp. - September 15, 2025) - CareRx Corporation (TSX: CRRX) ("CareRx" or the "Company"), Canada's leading provider of pharmacy services to seniors living and other congregate care communities, today announced its intention to pay a quarterly dividend and that the Toronto Stock Exchange ("TSX") has accepted its notice to make a normal course issuer bid to repurchase outstanding common shares in the capital of the Corporation ("Common Shares").
"The initiation of a quarterly dividend and renewal of our share repurchase program reflects the CareRx team's dedication to delivering robust cash generation and a disciplined capital allocation strategy," said Puneet Khanna, President and CEO of CareRx. "Our shareholders have been supportive partners throughout our multi-year growth journey, and their confidence continues to be rewarded by our strong financial performance. This balanced approach allows us to return capital to shareholders while maintaining financial flexibility to fund growth initiatives."
The Company reviews all elements of its capital allocation strategy on an ongoing basis. The Company remains committed to investing in organic and inorganic initiatives, including capital expenditures for capacity expansion and to support improved margins, and will also consider selective acquisition opportunities, which in the opinion of management and the Board of Directors will provide an attractive return on capital.
Initiation of Dividend
The Company's Board of Directors declared a dividend of $0.02 per Common Share, payable on October 15, 2025, to holders of record of Common Shares as of the close of business on September 23, 2025. This dividend is designated as an "eligible dividend" for Canadian income tax purposes.
Normal Course Issuer Bid
The TSX has approved the Company's normal course issuer bid to purchase for cancellation up to 1,500,000 Common Shares (the "NCIB"), representing approximately 2.4% of the 62,925,219 Common Shares issued and outstanding as at September 4, 2025.
The NCIB will provide CareRx with the flexibility to acquire Common Shares in order to return capital to shareholders, as part of its overall capital management strategy.
It is expected that the NCIB will begin on September 17, 2025 and will end on September 16, 2026, or such earlier date as the NCIB is completed or is terminated in the discretion of the Company. The average daily trading volume on the TSX for the six months ending August 31, 2025, was 39,300 Common Shares (the "ADTV"). In accordance with TSX rules, the Company may purchase up to 9,825 Common Shares on the TSX during any trading day, representing 25% of the ADTV, subject to TSX rules permitting block purchases.
Purchases under the NCIB may be made through the facilities of the TSX, other Canadian stock exchanges and/or alternative Canadian trading platforms, at prevailing market rates. Subject to regulatory approval, purchases under the NCIB may also be made by way of private agreements or share repurchase programs under issuer bid exemption orders issued by securities regulatory authorities. Any purchases made under an exemption order issued by a securities regulatory authority will generally be at a discount to the prevailing market price. The actual number of Common Shares to be purchased, and the timing of any such purchases (if any), will be determined by the Company, subject to the applicable rules of the TSX. Although the Company intends to repurchase Common Shares under its NCIB, there can be no assurances that any such purchases will be completed. All Common Shares repurchased under the NCIB will be cancelled.
The Company maintained a normal course issuer bid for the twelve-month period commencing on September 7, 2024, and ending on September 6, 2025 (the "Previous NCIB"), under which the Company sought and received approval from the TSX to purchase up to 1,500,000 Common Shares. The Company purchased 672,984 Common Shares under the Previous NCIB at a weighted average purchase price of $2.49 per Common Share through the facilities of the TSX and alternative Canadian trading systems.
The Company has established an automatic repurchase plan with its designated broker in order to facilitate purchases of Common Shares under the NCIB. Under the automatic repurchase plan, the Company's designated broker may purchase Common Shares at times when the Company ordinarily would not be active in the market due to its own internal trading blackout periods, insider trading rules or otherwise. Purchases made pursuant to the automatic repurchase plan, if any, will be made by the Company's designated broker based upon the parameters prescribed by the TSX, applicable Canadian securities laws and the terms of the written agreement with the Company. The automatic repurchase plan constitutes an "automatic plan" for purposes of applicable Canadian securities legislation and has been pre-cleared by the TSX.
About CareRx Corporation
CareRx is Canada's leading provider of pharmacy services to seniors living and other congregate care communities (long-term care homes, retirement homes, assisted living facilities and group homes). We are a national organization with a large network of pharmacy fulfillment centers strategically located across the country. This allows us to deliver medications in a timely and cost-effective manner and quickly respond to routine changes in medication management. We use best-in-class technology that automates the preparation and verification of multi-dose compliance packaging of medication, providing the highest levels of safety and adherence for individuals with complex medication regimens. We take an active role in working with our home operator partners to promote resident health, staff education and medication system quality and efficiency.
For additional information, visit www.carerx.ca or contact:
| Puneet Khanna President & Chief Executive Officer CareRx Corporation (416) 927-8400 | Suzanne Brand Chief Financial Officer CareRx Corporation (416) 927-8400 | Neil Weber Investor Relations LodeRock Advisors (647) 222-0574 neil.weber@loderockadvisors.com |
Forward-Looking Statements
This press release contains statements that may constitute "forward-looking statements" within the meaning of applicable Canadian securities legislation. These forward-looking statements include, but are not limited to, statements regarding the Company's business strategy, plans and other expectations, beliefs, goals, objectives, information and statements about possible future events, including statements about the Company's intention to pay a quarterly dividend, make future investments, consider acquisition opportunities, fund continued growth, the anticipated dates of the NCIB, and the intention to repurchase Common Shares under the NCIB. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "may", "will", "expect", "intend", "estimate", "anticipate" or similar expressions suggesting future outcomes or events. Such forward-looking statements reflect management's current beliefs and are based on information currently available to management.
Forward-looking statements are necessarily based on management's perception of historical trends, current conditions, and future developments, as well as assumptions that, while considered reasonable by management as of the date hereof, are inherently subject to known and unknown risks and uncertainties (many of which are beyond the control of the Company) that could cause actual results to differ materially from those contemplated by such statements. Factors and risks that could cause such differences include, but are not limited to, the Company's general business risks, the Company's exposure to and reliance on government regulation and funding, risks related to employee recruitment and retention, the Company's liquidity and capital requirements, exposure to epidemic or pandemic outbreak, reliance on contracts with key care operators, and other risk factors described from time to time in the reports and disclosure documents filed by the Company with Canadian securities regulatory agencies and commissions. The foregoing risks and factors is not an exhaustive list of the factors that may impact the Company's forward-looking statements. These and other factors should be considered carefully and readers should not place undue reliance on the Company's forward-looking statements. As a result of the foregoing and other factors, no assurance can be given as to any such future results, levels of activity or achievements. The factors underlying current expectations are dynamic and subject to change. Other than as specifically required by applicable laws, the Company is under no obligation and it expressly disclaims any such obligation to update or alter the forward-looking statements, whether as a result of new information, future events or otherwise. All forward-looking statements in this press release are qualified by these cautionary statements.
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SOURCE: CareRx Corporation
