CareView Communications Converts Secured Debt for Projected Growth

LEWISVILLE, Texas--(BUSINESS WIRE)-- CareView Communications, Inc. ("CareView" or the "Company") (OTCQB: CRVW), an information technology provider to the healthcare industry, proudly announces the successful completion of a transformative series of transactions. In this milestone achievement, the Company’s secured debt totaling approximately $94 million (the “Secured Notes”) was canceled or converted into shares of the Company’s common stock. This strategic move signifies a crucial advancement in the Company’s growth trajectory.

Under the guidance of CareView’s management team, negotiations were initiated with noteholders to structure these transactions to reduce the Company’s debt burden while capitalizing on current and projected business expansion opportunities. The culmination of this endeavor resulted in a significant decrease in debt reflected on the Company’s balance sheet.

This combination of debt-to-equity conversion, warrant elimination, and interest forgiveness resulted in a total transaction equating to an approximate value of $0.21 per share. This calculation further solidifies the favorable nature of this strategic plan.

On December 30, 2022, the Company entered into an agreement with all secured noteholders to cancel warrants for 14,454,807 underlying shares issued in connection with the debt, to cancel approximately $50 million in accrued interest, and to exchange existing Secured Notes for replacement notes bearing no interest in the aggregate of $44.2 million (the “Replacement Notes”). During the first and second quarter of 2023, all Replacement Notes were converted at the option of the noteholders into shares of the Company’s common stock at $0.10 per share. The transaction resulted in two entities, HealthCor Partners Fund, L.P. and HealthCor Hybrid Offshore Master Fund, L.P., owning approximately 62% of the Company’s shares of outstanding common stock.

In May 2023, PDL Investment Holdings, LLC, extended the maturity date of its loan in the approximate amount of $34 million to December 31, 2024.

CareView’s President and CEO, Steven G. Johnson, emphasized the significance of the debt restructure, stating, “This decisive measure, jointly undertaken by the Company’s board of directors and secured noteholders, reinforces our commitment to strengthening CareView’s balance sheet and optimizing our cash flow position. With this restructured foundation, we are poised to seize exciting growth opportunities, particularly through key collaborations with major hospital groups. Ultimately, this advancement will deliver enhanced value to our Company’s shareholders.”

About CareView Communications, Inc.

As a leader in turnkey patient video monitoring solutions, CareView is redefining the standard of patient safety and care in hospitals and healthcare facilities across the country. For over a decade, CareView has relentlessly pursued innovative ways to increase patient protection, providing next-generation solutions that lower operational costs and foster a culture of safety among patients, staff, and hospital leadership. With installations in more than 150 hospitals, CareView has proven that its innovative technology is creating a culture of patient safety where patient falls have decreased by 80% and sitter costs reduced by more than 65%. Anchored by the CareView Patient Safety System® and CareView Patient Care System™, this modular, scalable solution delivers flexible configurations to fit any facility while significantly increasing patient safety, care, and operational savings. All configurations feature HD cameras, high-fidelity 2-way audio/video, LCD displays for the ultimate in capability, flexibility, and affordability. Corporate offices are located at 405 State Highway 121 Bypass, Suite B-240, Lewisville, TX 75067. More information about the Company and its products and services is available on the Company's website at www.care-view.com.

Forward-Looking Statements

Statements made in this release that are not statements of historical or current facts are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. We caution readers that forward-looking statements are predictions based on our current expectations about future events. These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties and assumptions that are difficult to predict. Our actual results, performance, or achievements could differ materially from those expressed or implied by the forward-looking statements. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise that occur after that date, except as required by law.

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Steven G. Johnson

President and Chief Executive Officer

CareView Communications, Inc.

(972) 943-6050

Source: CareView Communications, Inc.