CareMax Reaches Agreements to Sell Organization of Management Services and Capital Assets to Investing.com

Be respectful Medicine (TASE:) Enters into Agreement to Acquire CareMax Management Services Corporation

Agreement on Terms Reached with Self-Igniting Horse for Capital Assets

Commercial Transaction Will Be Expedited Chapter 11 Filing Backed 100% by CareMax Secured Lenders

CareMax Secures $30.5 Million in Creditor Financing to Support Operations and Continued Provision of Health Care Services (NASDAQ:) Throughout Remedial Process

MIAMI–(BUSINESS WIRE)–CareMax, Inc. (NASDAQ: CMAX; CMAXW) (CareMax or the Company), a leading value-enabled technology-based care provider, today announced that it has entered into an agreement to sell its management services organization and announced the sale process of the Company’s core institutional assets (collectively, the Sales Operations). The Sale Transactions will be executed pursuant to a pre-arranged chapter 11 plan supported and financed by 100 percent of CareMax’s current secured creditors (the Plan).

CareMax has entered into an agreement with a subsidiary of Revere Medical (known as Rural Health Group), whereby Revere Medical will acquire the Medicare Shared Savings Program portion of the Company’s managed services organization (MSO Business) which supports the care provided to approximately 80,000 Medicare beneficiaries. The sale of the MSO Business is expected to be completed concurrently with the completion of the CareMax Plan. The company intends to eliminate the ACO REACH and Medicare Advantage components of its administrative services organization.

CareMax also announced that it has reached an agreement in principle regarding a stalking horse agreement with a third-party buyer of the Company’s operating clinics business (Headquarters Assets). The closing of this sale is also expected to be completed concurrently with the termination of the CareMax Planned Parenthood. The company intends to disclose the proposed terms of the Stalking Horse deal with the potential buyer in the coming days, when and if the deal is finalized.

The bid for the hidden horses will be subject to auction and, if a deal with the buyer of the hidden horses is not completed in the coming days, CareMax’s current secured lenders “who have been providing financing to the business for the past four months” will apply for the loan. For Assets of Central Institutions. The sales process is designed to ensure patient-physician continuity and CareMax’s secured lenders are committed to supporting the business throughout the process.

To facilitate the foregoing, CareMax has commenced voluntary pre-arranged chapter 11 proceedings in the US Bankruptcy Court for the Northern District of Texas (the “Court”). CareMax also filed civil claims with the Court, seeking authorization to maintain business operations as usual, including:

• Continuing operations to ensure that patients in its clinics continue to receive high quality health care;
• Paying related salaries, including its doctors and nurses, without interruption; again
• To settle pre-existing claims against certain vendors that are essential to the health and safety of CareMax patients and essential to the operation of the Company’s medical facilities.

These proposals, if approved, will help ease the transition to the restructuring process and ensure that the Company’s medical facilities and physicians can continue to provide uninterrupted care to patients.

At the same time, CareMax entered into a refinancing agreement (“RSA”) with 100 lenders. percentage of the Company’s secured debt obligations. The RSA provides for, among other things, the lenders’ support in connection with the Sales Transactions and the Arranged Plan and the lenders’ agreement to provide CareMax with a $30.5 million facility to fund CareMax’s operations by guaranteeing the Prearranged Plan. DIP Financing).

The Arranged Plan, Commercial Transaction, RSA, and DIP Financing are subject to Court approval, as well as the approval of customary laws and closing conditions. CareMax expects that the Sale Transactions and the Arrangement will be completed in early 2025.

CareMax will continue to operate and maintain its commitment to providing quality patient care and services. The DIP financing is expected to provide sufficient capital to support the Company’s ongoing operations throughout the restructuring process.

Carlos de Solo, Chief Executive Officer of CareMax, commented, After carefully reviewing the Company’s alternatives, we have determined that the transaction announced today is our best opportunity to protect the long-term value of CareMax assets and ensure our patients, providers, and health plans can continue to rely on comprehensive care , the integration we offer. We are extremely grateful for the outstanding team members throughout CareMax, who work hard and whose commitment to our partners is strong.

Additional information about the Company’s judicial process, filings, and information about the claims process can be found on the website administered by CareMax’s claims agent, Stretto, Inc. Information is also available by calling (855.314.3709) (Toll Free) and (657.660.3550) (International).

Additional information regarding the Pre-Planned Plan, Sales Activities, RSA, and DIP Financing, and the effect of the foregoing on the Company’s securities management, can be found in the Current Report on Form 8-K to be filed with the US Securities and Exchange. Commission.

Counselors

Sidley Austin LLP is acting as legal counsel to CareMax. Alvarez & Marsal North America, LLC is acting as financial advisor to CareMax. Piper Sandler & Co. serves as the investment bank for CareMax. Ropes & Gray LLP is acting as legal counsel and Guggenheim Securities, LLC is acting as financial advisor and investment bank manager to the current secured lenders.

About CareMax

Founded in 2011, CareMax is a value-based care delivery system that uses a proprietary technology-enabled platform and a multi-specialty, holistic health model to deliver comprehensive, preventive and integrated care to its members. CareMax operates 46 clinical centers and employs approximately 1,100 employees who serve approximately 260,000 patients across all lines of business. Through fully integrated, Five-Star Quality-rated CareMax facilities, CareMax is redefining health care nationwide by reducing costs, improving overall outcomes and promoting health equity for seniors.

Learn more at www.caremax.com.

About Revere Medical / Rural Healthcare Group

Rural Healthcare Group is now Revere Medical. Revere Medical is based in Nashville, Tennessee and operates a chartered medical group and provider network in six states. More information about Revere Medical can be found here: www.reveremedical.com

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Industrial Exchange Act of 1934, as amended, and the Securities Litigation Reform Act of 1995, as amended. These forward-looking statements include statements regarding the process and the likely outcome and timing of the Company’s chapter 11 litigation, the Company’s expectations regarding the Planned Action, Sales and Financing Activities of DIP and approval by the Court, and the Company’s expectations regarding reaching a settlement. selling Capital Assets, the Company’s ability to continue operating as normal during the chapter 11 process and the Company’s ability to pay ongoing obligations. Words like “expect,” “believe,” “budget,” “meditate,” “continue,” “can,” “imagine,” “estimate,” “anticipate,” “direction,” “show,” “intend , ” “possible,” “possible,” “planning,” “likely,” “probable,” “prediction,” “probable,” “pro forma,” “project,” “seeking,” “should,” “intended, ” “pro forma,” “project,” “want,” “should,” “intend,” ” or “will,” or negative or other variations thereof, and similar words or phrases or words, are intended to identify forward-looking statements. These forward-looking statements reflect the Company’s expectations, plans or forecasts of future events and views as of the date of the press release. These forward-looking statements are not guarantees of future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside the Company’s control, that may cause actual results or outcomes. differ materially from those discussed in the forward-looking statements.

Important risks and uncertainties that could cause the Company’s actual results and financial condition to differ from those expressed in the forward-looking statements include, among other things, the Company’s future cash requirements and the sources and uses of cash, including funds to satisfy its financing needs; the Company’s ability to fund planned operations and its ability to continue as a going concern; the adverse effect of the chapter 11 proceedings on the Company’s business, financial condition, and results of operations; the Company’s ability to maintain relationships with patients, employees, physicians, health plans and other payers and other third parties as a result of the chapter 11 proceedings; the consequences of the Chapter 11 proceeding of the Company and the interests of various parties, including holders of the Company’s common stock; the Company’s ability to obtain court approvals with respect to motions filed with the Court or other motions filed with the Court during the pendency of the chapter 11 proceedings; risks associated with third-party motions in chapter 11 cases; and other risks and uncertainties described from time to time in the Company’s filings with the United States Securities and Exchange Commission (SEC). For a detailed discussion of the risk factors that may affect the Company’s actual results, please refer to the risk factors identified in the Company’s reports filed with the SEC. All information provided in this press release is as of its date, and the Company undertakes no obligation to revise or update this information except as required by law, and forward-looking statements should not be relied upon as representing the Company’s assessment as of any date. following the date of this press release.

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

Source: CareMax, Inc.