Comprehensive Healthcare Systems Inc. Announces Closing of Third and Final Tranche of Previously Announced Non-Brokered Private Placement

December 12, 2022

CALGARY, AB, December 12, 2022/CNW/ - ComprehensiveHealthcare Systems Inc. (TSXV: CHS) (the "Company" or "CHS") is pleased to announce that it has closed the third and final tranche (the "Final Tranche") of its non-brokered private placement (the "Private Placement") as previously announced on October 17, 2022, October 31, 2022, and November 29, 2022. Under the Final Tranche, the Company issued 5,400,000 units of the company(the "Units") at a price of $0.05 per unit for gross proceeds of $270,000. Together with the first tranche and second tranche of the Private Placement, which closed on October 31, 2022, and November 29, 2022, respectively, the Company has issued a total of 34,800,000 Units, for aggregate gross proceeds of $1,740,000, under the private placement. Due to substantial investor demand, CHS received approval from the TSX Venture Exchange to partially increase the size of its initially announced$1,500,000 Private Placement to $1,750,000.

Each Unit consists of one common share in the capital of CHS (a "Share") and a transferable common share purchase warrant (a "Warrant"). Each Warrant is exercisable for a period of 24 months from the date it was issued (the "Exercise Period"). Each Warrant entitles the holder to purchase one Share (a "Warrant Share") at a price of$0.10 per Warrant Share for the first 12 months of the Exercise Period and at a price of $0.15 per Warrant Share between 12 and 24 months of the exercise period.

In connection with the closing of the Final Tranche, certain arm's length finders (collectively, the "Finders") received fees equal to 7% of the gross proceeds for certain subscribers that were brought by those fingers for an aggregate total of $15,750. Additionally, the Finders were issued an aggregate of 315,000 warrants expiring twenty-four months from the date of issuance (the "Finder Warrants"). Each finder warrant entitles the holder thereof to subscribe for one Warrant Share at a price of $0.10 per Warrant Share for the first 12 months of the Exercise Period and at a price of $0.15 per Warrant Share between 12 and 24 months of the exercise Period.

The securities issued under the Private Placement were offered by way of private placement in such provinces and/or territories of Canada as were determined by the Company, pursuant to applicable exemptions from the prospectus requirements under applicable securities laws. All securities issued under the Private Placement are subject to a hold period that will expire four months and one day from the date of the applicable closing of the Private Placement.

The net proceeds of the private placement will be used for general corporate and working capital purposes and may also be used to fund the purchase price for the acquisition of ProfessionalBenefit Administrators West, LLC, and Oklahoma limited liability company d/b/a Benveo (the "Benveo Acquisition"). For further details on the Benveo Acquisition, please refer to the Company's press releases dated September 22, 2022.



About Comprehensive Healthcare Systems Inc.

Comprehensive Healthcare SystemsInc. is a corporation incorporated under the laws of the Province of Alberta and is the parent company of Comprehensive Healthcare Systems Inc. (Delaware). The Company is a vertically integrated software as a services (SaaS) company focused on digitizing healthcare with Telehealth and Healthcare BenefitsAdministration solutions, providing reliable and high-volume transaction-capable systems. The Company's state-of-the-art Novus 360 Healthcare Welfare and Benefits Administration (HWBA) SaaS platform is used by clients for all aspects of healthcare benefits administration (including self-funded employers, hospitals, doctors, and labor unions, through various corporations in which the majority shareholder has controlling ownership), providing healthcare administrative software, licensing and maintenance services.


The press release contains "forward-looking statements" within the meaning of applicable securities laws. Forward-looking statements can be identified by words such as: "anticipate," intend," "plan," "budget," "believe," "project," estimate," "expect," "scheduled," "forecast," strategy," "future," "likely," "may," "to be," "could," "would," "should," "will" and similar references to future periods or the negative or comparable terminology, as well as terms usually used in the future and conditional. An example of a forward-looking statement in this news release is the intended use of the proceeds of the Private Placement. These forward-looking statements are based on assumptions as of the date they are provided. However, there can be no assurance that such assumptions will reflect the actual outcome of such items or factors.

Additionally, there are known and unknown risk factors that could cause the Company's actual results and financial conditions to differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important risk factors that could cause actual results and financial conditions to differ materially from those indicated in the forward-looking statements include, among others: general economic, market and business conditions in Canada and globally; market volatility; unforeseen delays in timelines for any of the transactions or events described in this press release; and the risk of regulatory changes that may impact the business of the Company. All forward-looking information is qualified in its entirety by this cautionary statement, and the Company disclaims any obligation to revise or update any such forward-looking statement or to publicly announce the result of any revisions to any of the forward-looking information contained herein to reflect future results, events or developments, except as required by law.

Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.