Revere Medical (TASE:) Enters into Settlement to Purchase CareMax’s Administration Companies Group

Settlement in Precept Reached with Stalking Horse for Core Facilities’ Property

Sale Transactions to be Carried out By way of an Expedited Prearranged Chapter 11 Plan Supported by 100% of CareMax’s Secured Lenders

CareMax Secures $30.5 Million in Debtor in Possession Financing to Assist Operations and Persevering with Provision of Healthcare Companies (NASDAQ:) All through Restructuring Course of

MIAMI–(BUSINESS WIRE)–CareMax, Inc. (NASDAQ: CMAX; CMAXW) (CareMax or the Firm), a number one technology-enabled value-based care supply system, right now introduced it has entered into an settlement to promote its administration companies group and in addition introduced a sale course of for the Firm’s core facilities’ belongings (collectively, the Sale Transactions). The Sale Transactions will likely be applied pursuant to a prearranged chapter 11 plan supported and funded by 100% of CareMax’s present secured lenders (the Prearranged Plan).

CareMax has entered into an settlement with an affiliate of Revere Medical (previously generally known as Rural Well being Group), pursuant to which Revere Medical will purchase the Medicare Shared Financial savings Program portion of the Firm’s administration companies group (the MSO Enterprise) that helps care offered to roughly 80,000 Medicare beneficiaries. The sale of the MSO Enterprise is anticipated to be consummated concurrently with the consummation of CareMax’s Prearranged Plan. The Firm intends to wind down the ACO REACH and Medicare Benefit parts of its administration companies group.

CareMax additionally introduced that it has reached an settlement in precept on a stalking horse settlement with a third-party purchaser for the Firm’s working clinic enterprise (the Core Facilities’ Property). The closing of this sale can be anticipated to be consummated concurrently with the consummation of CareMax’s Prearranged Plan. The Firm intends to reveal the proposed phrases of the stalking horse settlement and the potential purchaser within the coming days, when and if an settlement is finalized.

The stalking horse bid will likely be topic to an public sale and, if an settlement with the stalking horse bidder is just not finalized within the coming days, CareMax’s present secured lenders “ who’ve been offering capital to the enterprise for the previous 4 months “ will credit score bid for the Core Facilities Property. The sale course of is meant to make sure affected person and physician continuity and CareMax’s secured lenders are dedicated to supporting the enterprise all through this course of.

To facilitate the foregoing, CareMax has initiated prearranged voluntary chapter 11 proceedings within the U.S. Chapter Court docket for the Northern District of Texas (the “Court”). CareMax has additionally filed customary motions with the Court docket, in search of authorization to keep up business-as-usual operations, together with by:

• Persevering with operations to make sure sufferers at its clinics proceed to obtain high-quality, value-based healthcare;
• Paying related wages, together with for its docs and nurses, with out interruption; and
• Paying the prevailing pre-petition claims of sure distributors which might be essential to the well being and security of CareMax’s sufferers and significant to the operation of the Firm’s medical facilities.

These motions, as soon as permitted, will assist facilitate a clean transition into the restructuring course of and make sure the Firm’s medical facilities and physicians can proceed offering uninterrupted service to sufferers.

Concurrently, CareMax entered right into a restructuring help settlement (the “RSA”) with lenders holding 100 % of the Firm’s secured debt obligations. The RSA offers for, amongst different issues, the lenders’ help for the Sale Transactions and the Prearranged Plan and the lenders’ settlement to supply CareMax with a $30.5 million debtor in possession financing facility to help CareMax’s operations via affirmation of the Prearranged Plan (the DIP Financing).

The Prearranged Plan, the Sale Transactions, the RSA, and the DIP Financing are topic to Court docket approval, in addition to customary regulatory approval and shutting circumstances. CareMax anticipates that the Sale Transactions and Prearranged Plan will likely be consummated in early 2025.

CareMax will proceed to function and keep its dedication to offering high-quality affected person care and companies. The DIP Financing is predicted to supply ample liquidity to help the Firm’s ongoing operations all through the restructuring course of.

Carlos de Solo, Chief Government Officer of CareMax, commented, After a cautious evaluate of the Firm’s strategic options, we have now decided that the transactions introduced right now are our greatest alternative to guard the long-term worth of the CareMax belongings and guarantee our sufferers, suppliers, and well being plans can proceed to depend on the great, coordinated care we offer. We’re deeply appreciative of the excellent crew members throughout CareMax, whose exhausting work and dedication to our companions is resolute.

Extra info relating to the Firm’s court-supervised course of, courtroom filings, and details about the claims course of will be discovered at https://instances.stretto.com/CareMax, an internet site administered by CareMax’s claims agent, Stretto, Inc. Info can be obtainable by calling (855.314.3709) (Toll-Free) and (657.660.3550) (Worldwide).

Extra info relating to the Prearranged Plan, Sale Transactions, the RSA, and the DIP Financing, and the influence of the foregoing on the Firm’s securityholders, will be present in a Present Report on Kind 8-Ok to be filed with the U.S. Securities and Change Fee.

Advisors

Sidley Austin LLP is serving as authorized counsel to CareMax. Alvarez & Marsal North America, LLC is serving as monetary advisor to CareMax. Piper Sandler & Co. is serving as funding banker to CareMax. Ropes & Grey LLP is serving as authorized counsel and Guggenheim Securities, LLC is serving as monetary advisor and funding banker to the present secured lenders.

About CareMax

Based in 2011, CareMax is a value-based care supply system that makes use of a proprietary technology-enabled platform and multi-specialty, complete particular person well being mannequin to ship complete, preventative and coordinated look after its members. CareMax operates 46 medical facilities and employs roughly 1,100 staff who serve roughly 260,000 sufferers throughout all enterprise strains. By way of CareMax’s fully-integrated, 5-Star High quality rated well being and wellness facilities, CareMax is redefining healthcare throughout the nation by lowering prices, bettering general outcomes and selling well being fairness for seniors.

Be taught extra at www.caremax.com.

About Revere Medical / Rural Healthcare Group

Rural Healthcare Group is now Revere Medical. Revere Medical is headquartered in Nashville, Tennessee and operates an employed medical group and supplier community throughout six states. Extra info on Revere Medical will be discovered right here: www.reveremedical.com

Ahead-Wanting Statements

This press release incorporates forward-looking statements inside the which means of Part 27A of the Securities Act of 1933, as amended, Part 21E of the Securities Change Act of 1934, as amended, and the Non-public Securities Litigation Reform Act of 1995, as amended. These forward-looking statements embrace statements relating to the method and potential outcomes and timing of the Firm’s chapter 11 proceedings, the Firm’s expectations relating to the Prearranged Plan, the Sale Transactions and the DIP Financing and the Court docket’s approval thereof, the Firm’s expectations relating to reaching an settlement to promote the Core Facilities’ Property, the Firm’s capability to proceed to function as normal through the chapter 11 proceedings and the Firm’s capability to pay for persevering with obligations. Phrases similar to “anticipate,” “believe,” “budget,” “contemplate,” “continue,” “could,” “envision,” “estimate,” “expect,” “guidance,” “indicate,” “intend,” “may,” “might,” “plan,” “possibly,” “potential,” “predict,” “probably,” “pro forma,” “project,” “seek,” “should,” “target,” or “will,” or the detrimental or different variations thereof, and comparable phrases or phrases or comparable terminology, are meant to determine forward-looking statements. These forward-looking statements replicate the Firm’s expectations, plans or forecasts of future occasions and views as of the date of this press release. These forward-looking statements should not ensures of future efficiency, circumstances or outcomes, and contain quite a few identified and unknown dangers, uncertainties, assumptions and different necessary elements, a lot of that are exterior the Firm’s management, that might trigger precise outcomes or outcomes to vary materially from these mentioned within the forward-looking statements.

Vital dangers and uncertainties that might trigger the Firm’s precise outcomes and monetary situation to vary materially from these indicated in forward-looking statements embrace, amongst others, the Firm’s future capital necessities and sources and makes use of of money, together with funds to fulfill its liquidity wants; the Firm’s capability to fund its deliberate operations and its capability to proceed as a going concern; the opposed influence of the chapter 11 proceedings on the Firm’s enterprise, monetary situation, and outcomes of operations; the Firm’s capability to keep up relationships with sufferers, staff, docs, well being plans and different key payers and different third events because of the chapter 11 proceedings; the consequences of the chapter 11 proceedings on the Firm and the pursuits of varied constituents, together with holders of the Firm’s widespread inventory; the Firm’s capability to acquire courtroom approvals with respect to motions filed or different requests made to the Court docket all through the course of the chapter 11 proceedings; threat related to third-party motions within the chapter 11 instances; and the opposite dangers and uncertainties described on occasion within the Firm’s filings with the US Securities and Change Fee (the SEC). For an in depth dialogue of the danger elements that might have an effect on the Firm’s precise outcomes, please check with the danger elements recognized within the Firm’s reviews filed with the SEC. All info offered on this press release is as of the date hereof, and the Firm undertakes no responsibility to replace or revise this info until required by regulation, and forward-looking statements shouldn’t be relied upon as representing the Firm’s assessments as of any date subsequent to the date of this press release.

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Investor Relations / Media
Jude Gorman / Clayton Erwin / Olivia Sherman Collected Methods
CareMax-CS@collectedstrategies.com

Supply: CareMax, Inc.