Successful Integration of Acquisitions
Yielding Early Benefits
- $6.4 million in new multi-year
contracts signed since November 1,
2021, including new landmark contracts announced with
LifeLabs and Air Canada
- Revenue up 178% to a record $2.40
million in Q1 2022 compared to $0.86
million in Q1 2021
- Increased number of clients to 96 in Q1 2022 compared to 2 in
Q1 2021
- 3.5 million members currently connected on expanding Carebook
platform
- Opportunities for synergies and further expansion into the
fast-growing US market identified following successful completion
of integration of InfoTech acquired in Q2 2021 and CoreHealth
acquired in Q3 2021
- Rights Offering successfully completed with aggregate proceeds
of $4.5 million
- Olivier Giner appointed as new
CFO effective June 1, 2022
MONTREAL, May 30, 2022
/CNW Telbec/ - Carebook Technologies Inc. ("Carebook" or the
"Company") (TSXV: CRBK) (OTCPK: CRBKF) (XFRA: PMM1), a
leading Canadian provider of innovative digital health solutions
today announced its results for its first quarter ended
March 31, 2022.
"Our record first quarter results provide an early illustration
of the improved performance trends in place within the company
following the successful integration of our acquisitions of
Wellness Checkpoint and CoreHealth," commented Michael Peters, Carebook CEO. "We expect to see
continued improvement and strong growth as we benefit from our
shift in strategic focus to the Employer vertical. The recent
landmark contracts signed with LifeLabs and Air Canada are two very
strong indications of the success of our strategy and we are
currently in discussions with many other potential major clients
both in Canada and the U.S. Of
particular note is the fact that we are now providing services to
96 clients compared to 2 clients during the same first quarter
period 2021. On the leadership front, we are thrilled to welcome
Olivier Giner to the Carebook team
as our new CFO. With Olivier's strong background in both finance
and operations, I know that he will play an integral role as
Carebook takes the lead in the global digital healthcare market
offering a comprehensive suite of assessment and wellness
solutions."
Revenue
Revenue for the quarter ended March 31,
2022, was $2.40 million,
compared to $0.86 million in the
quarter ended March 31, 2021, an
increase of $1.53 million or 178%
which is driven by the acquisitions of InfoTech and CoreHealth.
Revenue generated in 2021 was entirely from the pharmacy vertical,
whereas revenue generated in 2022 was 21% pharmacy and 79%
employer.
Total comprehensive loss
Total comprehensive loss was $1.80
million for the quarter ended March
31, 2022, compared to a loss of $2.26
million for the quarter ended March
31, 2021, a decrease of $0.45
million. The loss from operations decreased by 19% from
$2.06 million in first quarter of
2021 to $1.67 million in the first
quarter of 2022. While the acquisitions of InfoTech and CoreHealth
increased operating expenses for the quarter ended March 31, 2022, this was more than offset by the
incremental revenue and cost reductions that were implemented as of
November 1, 2021.
New Contracts Booked
Carebook has booked a record $6.4
million in new multi-year contracts since November 1, 2021. These contracts, from a diverse
base of clients located in the U.S. and Canada, provide confirmation of the success of
Carebook's strategy and renewed focus on the fast-growing employer
vertical. Included in the new bookings are the landmark contracts
signed with LifeLabs and Air Canada highlighted below.
LifeLabs
On January 10, 2022, Carebook
announced that it will be working with
LifeLabs, Canada's largest community medical laboratory
network, to deliver valuable insights to LifeLabs' MyCareCompass
customers through integration with Carebook's CoreHealth digital
platform. This multi-year licensing agreement will deliver even
greater value to LifeLabs' customers, empowering them to
conveniently manage their healthcare through MyCareCompass. The
CoreHealth assessment tool is an innovative solution that can
integrate with existing digital systems to provide a greater
understanding of immediate and long-term health care needs of
users. Through integration with LifeLabs' free and secure
MyCareCompass portal, over six million users will have access to
personalized insights from the CoreHealth solution. These easily
accessible insights are critical in supporting better healthcare
outcomes for customers.
Air Canada
On April 25, 2022, Carebook
announced a contract with Air Canada for the inclusion of the
Carebook CoreHealth Platform in its Employee Portals.
Air Canada is using Carebook's
CoreHealth total well-being platform to connect their
employees to a comprehensive suite of leading health and
wellness programs, content and solutions.
CoreHealth's platform is easy to use and highly configurable
giving Air Canada the ability to deliver specific wellness
programming to meet the individual needs of their employees. The
CoreHealth solution builds upon the current organizational
understandings provided by Carebook's Wellness Checkpoint
assessment tool which has been in use with Air Canada since 2017.
When coupled together, these two leading solutions offer Air Canada
an unparalleled opportunity to curate relevant programming that
will help improve the health and wellness of all Air Canada
employees. Air Canada will be one of the first world-class
employers to benefit from the combined power of Carebook's
integrated assessment and wellness solutions and provides the
company with an international showcase for its solutions
capability.
Integration of Acquisitions Complete
On April 6, 2021, Carebook
completed the acquisition of InfoTech, doing business as Wellness
Checkpoint®, a global web-based service used by many
Global Fortune 500 companies in over 100 countries that is
translated into 26 languages. InfoTech's proprietary software
platform Wellness Checkpoint®, IP and metrics are
supported by advanced analytics and focus on employees' physical
health, mental health and well-being, and their impact on work and
business effectiveness. Representative clients include
multinational companies in the aerospace, financial, food
processing, technology, pharmaceutical, manufacturing and resource
sectors, many of whom have been utilizing the platform for over ten
years.
On August 6, 2021, Carebook
completed its acquisition of CoreHealth. The
CoreHealth solution is an industry leading platform that
powers health and wellness programs. CoreHealth offers corporate
wellness providers and group benefits providers a robust technology
platform-as-a-service to power programs and engage employees with
various interventions like coaching, self-directed programs, group
challenges, and habit trackers. The platform offers over 30
services in the form of APIs including scheduling,
teleconferencing, questionnaires, content feeds, messaging and
more. These services are offered by an expanding network of direct
health and wellness providers and resellers. The technology is
flexible, configurable, scalable, and easy to integrate.
Carebook's acquisitions of InfoTech and CoreHealth establish the
Company as a leader in the provision of digital health and wellness
with customers across the globe. Carebook is delivering on its
stated objective to be the connector to a new model of healthcare.
With the integration of these acquisitions substantially completed
late in 2021, the Company can now offer a wide range of
best-in-class health and wellness assessments and solutions to add
depth to its offerings targeting employers and insurers. Both
InfoTech's Wellness Checkpoint® platform and
CoreHealth's leading wellness technology platform are used by
global businesses of significant size, providing considerable
market recognition and validation. The combination of these
solutions allows Carebook to offer employers not only the means to
assess and understand their employees' health challenges, but also
to provide specific, targeted, and customized solutions to improve
employee health, wellness, and productivity.
Pharmacy Vertical
The Be Well app for Rexall Pharmacy in Canada on iOS, Android and web was launched in
May 2020. The launch and subsequent
usage of the app has been a success and users have been responding
positively to the platform. As at April 2,
2022, App Store ratings (iOS
users) were 4.5/5 stars, and Google Store (Android users) were
4.6/5 stars. During the first quarter of 2022, the Be Well program
maintained an average Net Promoter Score of 75%, which is above the
industry average.
Olivier Giner Appointed as New CFO
Carebook announced last week the appointment of Mr. Olivier Giner as the Company's new Chief
Financial Officer effective as of June 1,
2022. Olivier, a lawyer by training, was most recently the
Chief Executive Officer of Adracare, a virtual care software
company based in Toronto which was
sold to Well Health Technologies in 2021. Prior to Adracare,
Olivier was Vice President and Chief Operating Officer of iGan
Partners, a healthcare venture capital fund. Olivier also spent 5
years at CIBC World Markets as a technology, media and telecom
investment banker. Olivier will take over from Carebook's Interim
CFO, Jeffrey Kadanoff.
Rights Offering and Stand-by Commitment
Agreement
On May 17, 2022, Carebook
announced the completion of its previously announced rights
offering. The Offering resulted in the issuance of 17,107,749
common shares of Carebook at a price of $0.15 per share for proceeds to the Company of
approximately $2.57 million.
In accordance with the terms of the stand-by commitment
agreement dated April 11, 2022
between the Company and UIL Limited, the Company also issued
12,892,251 additional common shares to UIL Limited, at a price of
$0.15 per share, for additional
proceeds to the Company of approximately $1.93 million, resulting in the Company receiving
aggregate proceeds of $4.5 million
under the Rights Offering.
Following closing of the Rights Offering and including the
common shares issued to UIL Limited pursuant to the Stand-by
Commitment Agreement, Carebook now has 77,752,356 common shares
issued and outstanding.
The proceeds from the Rights Offering will be used by the
Company to repay indebtedness, for working capital and for other
general corporate purposes.
Conference Call Details
A conference call will be held at 8:30 AM Eastern
on May 31, 2022 to discuss Carebook's year end financial
results. Participants may join the Company's conference call by
using an appropriate dial-in number or via webcast (ID:
6204460). For those unable to participate, playback will be made
available an hour after the event at 647-436-0148, or
1-888-203-1112, utilizing passcode 6204460.
Carebook's unaudited consolidated financial statements and
accompanying notes, and related Management's Discussion and
Analysis for the three-month period ended March 31,
2022 are available on the Company's website
at www.carebook.com and on SEDAR
at www.sedar.com.
About Carebook Technologies
Carebook's digital health
platform empowers its clients and more than 3.5 million members to
take control of their health journey. During 2021, the Company
completed the acquisitions of InfoTech Inc., a global leader in
health and productivity risk management, and CoreHealth
Technologies Inc., owner of an industry-leading wellness platform.
In combination, these companies create a comprehensive digital
health platform that includes both assessment tools and the
technology to deliver complementary solutions. Carebook's shares
trade on the TSXV under the symbol "CRBK," on the OTC Markets under
the symbol "CRBKF," and are listed on the Open Market of the
Frankfurt Stock Exchange under the symbol "PMM1."
www.carebook.com
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
Notice regarding forward-looking statements:
This release includes forward-looking information and
forward-looking statements within the meaning of Canadian
securities laws regarding Carebook, its subsidiaries and their
business. Often, but not always, forward-looking information can be
identified by the use of words such as "plans", "is expected",
"expects", "scheduled", "intends", "contemplates", "anticipates",
"believes", "proposes" or variations (including negative
variations) of such words and phrases, or state that certain
actions, events or results "may", "could", "would", "might" or
"will" be taken, occur or be achieved. Forward-looking information
in this release include statements with respect to the appointment
of a new CFO and expected timing thereof, the expected benefits
from completed and integrated acquisitions and timing thereof, and
the expected use of proceeds received by Carebook under the rights
offering. Such statements are based on the current expectations of
the management of Carebook and are based on assumptions and subject
to risks and uncertainties. Although the management of Carebook
believes that the assumptions underlying these statements are
reasonable, they may prove to be incorrect, and undue reliance
should not be placed on such forward-looking statements. The
forward-looking statements reflect the Company's current views with
respect to future events based on currently available information
and are inherently subject to risks and uncertainties. The
forward-looking events and circumstances discussed in this release
may not occur by certain specified dates or at all and could differ
materially as a result of known and unknown risk factors and
uncertainties affecting the Company, including economic factors,
management's ability to manage and to operate the business of
Carebook, management's ability to successfully integrate the
Company's completed acquisitions and to realize the synergies of
such acquisitions, management's ability to successfully complete
product studies, the equity markets generally and risks associated
with growth and competition, as well as the risk factors identified
in the Company's management's discussion and analysis for the year
ended December 31, 2021 and described
under the heading "Item 21 – Risk Factors" in the Listing
Application of the Company dated September
28, 2020, each of which can be found on SEDAR under the
Company's profile at www.sedar.com. Although Carebook
has attempted to identify important factors that could cause actual
actions, events or results to differ materially from those
described in forward-looking statements, there may be other factors
that cause actions, events or results to differ from those
anticipated, estimated or intended. Accordingly, readers should not
place undue reliance on any forward-looking statements or
information. No forward-looking statement can be guaranteed. Except
as required by applicable securities laws, forward-looking
statements speak only as of the date on which they are made and
Carebook does not undertake any obligation to publicly update or
revise any forward-looking statement, whether as a result of new
information, future events, or otherwise. In addition, the current
situation and future developments with respect to the COVID-19
pandemic could cause certain of the assumptions and information set
forth herein or the fact that on which such assumptions are based
to differ materially from previous expectations including in
respect of demand for our products, access to debt and equity
capital and other factors.
SOURCE Carebook Technologies Inc.