CARESPAN ANNOUNCES UPSIZE AND CLOSING OF $0.10 UNIT PRIVATE PLACEMENT

/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/

VANCOUVER, BC, Dec. 28, 2022 /CNW/ – CareSpan Health, Inc. (TSXV: CSPN) (“Company” or “CareSpan”), is pleased to announce that it has increased the size of its previously announced non-brokered private placement (the “Private Placement“) from 10,000,000 units of the Company (the “Units“) to 11,000,000 Units, and that it has closed the Private Placement for gross proceeds of $1,100,000. The Private Placement was fully subscribed.

Each Unit consists of one common share in the capital of the Company (each, a “Share“) and one-half of one common share purchase warrant (each whole warrant, a “Warrant“). Each Warrant entitles the holder to purchase one additional Share (each, a “Warrant Share“) for a period of 60 months from the date of issue of the Warrants at an exercise price of $0.15 per Warrant Share. Pursuant to the terms of the Private Placement, the Company issued 11,000,000 Shares and 5,500,000 Warrants.

In connection with the Private Placement, the Company paid an eligible arm’s length party (the “Finder“): (i) a cash fee of 7% of the aggregate value of Units sold pursuant Private Placement in respect of subscriptions referred to the Company or directly sourced by the Finder and issued on the closing of the Private Placement; and (ii) a number of common share purchase warrants (each a “Finder Warrant“) equal to 7% of the Units sold that were referred to or directly sourced by the Finder to the Company. The Company paid the Finder a cash fees in the aggregate amount of $9,100 and issued a total of 91,000 Finder Warrants. The Finder Warrants will be issued on the same terms as the Warrants.

The securities issued under the Private Placement were offered by way of private placement in Canada, to certain subscribers in the United States, and outside the United States, in each case, pursuant to applicable exemptions from the prospectus requirements under applicable securities laws. All securities issued under the Private Placement will be subject to a hold period which will expire on April 23, 2023.

Certain individuals who are each considered a “related party” (as such term is defined under Multilateral Instrument 61-101, Protection of Minority Security Holders in Special Transactions (“MI 61-101“)) of the Company participated in the Private Placement in the amounts set out below:

The participation by these individuals constitutes a related party transaction as defined under MI 61-101. Such participation is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 as neither the fair market value of the Units acquired by the interested party, nor the consideration for the Units paid by such interested party, exceed 25% of the Company’s market capitalization.

The Company intends to use the proceeds from the Private Placement for administrative and other general working capital purposes.

NOT FOR DISTRIBUTION TO UNITED STATES WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES. THIS NEWS RELEASE DOES NOT CONSTITUTE AN OFFER TO SELL OR A SOLICITATION OF AN OFFER TO BUY ANY OF THE SECURITIES IN THE UNITED STATES. THE SECURITIES HAVE NOT BEEN AND WILL NOT BE REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “U.S. SECURITIES ACT“) OR ANY STATE SECURITIES LAWS AND MAY NOT BE OFFERED OR SOLD WITHIN THE UNITED STATES OR TO U.S. PERSONS UNLESS REGISTERED UNDER THE U.S. SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS OR AN EXEMPTION FROM SUCH REGISTRATION IS AVAILABLE. THIS NEWS RELEASE DOES NOT CONSTITUTE AN OFFER OR SALE OF SECURITIES IN THE UNITED STATES.

Forward-Looking Statements Disclaimer

This press release may contain certain forward-looking information and statements (“forward-looking information”) within the meaning of applicable Canadian securities legislation, that are not based on historical fact, including without limitation statements containing the words “believes”, “anticipates”, “plans”, “intends”, “will”, “should”, “expects”, “continue”, “estimate”, “forecasts”  and other similar expressions. Readers are cautioned to not place undue reliance on forward-looking information. Actual results and developments may differ materially from those contemplated by these statements, including but not limited to, the intended use of the proceeds of the Private Placement. The Company undertakes no obligation to comment analyses, expectations or statements made by third-parties in respect of the Company, its securities, or financial or operating results (as applicable). Although the Company believes that the expectations reflected in forward-looking information in this press release are reasonable, such forward-looking information has been based on expectations, factors and assumptions concerning future events which may prove to be inaccurate and are subject to numerous risks and uncertainties, certain of which are beyond the Company’s control. The forward-looking information contained in this press release are expressly qualified by this cautionary statement and are made as of the date hereof. The Company disclaims any intention and has no obligation or responsibility, except as required by law, to update or revise any forward-looking information, whether as a result of new information, future events or otherwise.

This press release does not constitute an offer to sell or the solicitation of an offer to buy securities. 

The TSXV and its Regulation Services Provider have not approved the contents of, nor taken responsibility for the adequacy or accuracy of, this press release.