CareRx Corporation (TSX:CRRX) entered into a definitive agreement to acquire SmartMeds Pharmacy Inc. for CAD 7.4 million on January 26, 2021. SmartMeds also operates a retail pharmacy located in Burlington, Ontario that will be acquired as part of the transaction. The closing consideration is comprised of CAD 4 million of cash and CAD 475,000 of CareRx common shares. The purchase price also consists of an earn-out component of up to an additional CAD 2.925 million of cash consideration, payable following the second anniversary of closing, based on certain targets being achieved. CareRx expects to satisfy the closing cash consideration with cash on hand. The transaction is expected to close by March 31, 2021. The transaction is expected to be immediately accretive to CareRx's earnings and is expected to contribute run-rate revenue and EBITDA of approximately $13 million and $1.5 million respectively to CareRx on an annualized basis. As of February 3, 2021 the net proceeds of the Offering and the Concurrent Private Placement are expected to be used to satisfy the $4 million cash component of the purchase price payable at closing in connection with CareRx Corporation proposed acquisition of SmartMeds Pharmacy Inc.