CRH Medical Corporation Enters Into a Bought Deal Agreement for Gross Proceeds of C$23,800,000

VANCOUVER, BRITISH COLUMBIA--(Marketwired - March 5, 2015) - CRH Medical Corporation (TSX:CRH) ("CRH" or the "Company") has today entered into an agreement with a syndicate of underwriters led by Clarus Securities Inc., and including Bloom Burton & Co., Acumen Capital Finance Partners and Beacon Securities Ltd. (collectively, the "Underwriters"), pursuant to which the Underwriters have agreed to purchase, on a bought deal basis, 7,000,000 common shares (the "Common Shares") of the Company at a price of C$3.40 per Common Share (the "Offering Price") for aggregate gross proceeds to CRH of C$23,800,000 (the "Offering").

The Company has also agreed to grant the Underwriters an over-allotment option to purchase an additional 1,050,000 Common Shares at the Offering Price, exercisable in whole or in part, for a period ending 30 days following the Closing Date. In the event the over-allotment option is exercised in full, the aggregate gross proceeds of the Offering will be C$27,370,000.

The Common Shares will be offered in the provinces of Ontario, Alberta, Manitoba and British Columbia by short form prospectus, and in those jurisdictions outside of Canada which are agreed to by the Company and the Underwriters, where the Common Shares can be issued on a private placement basis, exempt from any prospectus, registration or other similar requirements.

The Offering is expected to close on or about March 25, 2015 (the "Closing Date") and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the Toronto Stock Exchange.

The Company intends to use the net proceeds from the Offering to reduce corporate indebtedness, fund future acquisitions, as well as for working capital and general corporate purposes.

About CRH Medical Corporation

CRH Medical Corporation is a North American company focused on providing physicians with innovative products and services for the treatment of gastrointestinal diseases. The Company's product distribution strategy focuses on physician education, patient outcomes, and patient awareness. The Company's first product, the CRH O'Regan System, is a single use, disposable, hemorrhoid banding technology that is safe and highly effective in treating hemorrhoid grades I - IV. CRH distributes the CRH O'Regan System, treatment protocols, operational and marketing expertise as a complete, turnkey package directly to physicians, allowing CRH to create meaningful relationships with the physicians it serves. CRH recently acquired a full service gastroenterology anesthesia company, Gastroenterology Anesthesia Associates, LLC, which provides anesthesia services for patients undergoing endoscopies and colonoscopies. Performing these procedures under anesthetic makes these procedures more comfortable for patients and allows gastroenterologists to perform more procedures. CRH expects to leverage the capabilities it acquired through GAA to consolidate the highly fragmented gastroenterology anesthesia provider business. The Company's goal is to establish CRH as the premier provider of innovative products and essential services to gastroenterologists throughout the United States. The common shares of CRH trade on the Toronto Stock Exchange as ticker 'CRH'. For more information visit our website at http://investors.crhsystem.com/.

Additional information relating to the Company is available on SEDAR at www.sedar.com.