13D Filing: James E. Flynn and DFB Healthcare Acquisitions Corp.

In addition, on February 21, 2018, contemporaneously
with the closing of the IPO, the Sponsor purchased an aggregate of 4,333,333 warrants (the “Private Placement Warrants”
and together with the Public Warrants, the “Warrants”) at a price of $1.50 per Private Placement Warrant, for
an aggregate purchase price of $6,500,000. On February 16, 2018, Deerfield Private Design Fund IV contributed $3,250,000 to the
Sponsor for 3,250,000 Units of the Sponsor (the “Additional Units” and, together with the Initial Units, the
“Sponsor Units”) to fund 50% of the purchase price for the Private Placement Warrants. RAB Ventures (DFB) LLC
(“RAB”), which holds Units of the Sponsor representing 50% of the membership interests in the Sponsor, also
contributed $3,250,000 to the Sponsor to fund the Sponsor’s acquisition of the Private Placement Warrants.

Deerfield Private Design Fund IV utilized
available cash assets to acquire the Sponsor Units and the Units it purchased in the IPO.

Hochberg, an employee of Deerfield Management,
serves as a director of the Company and, on December 29, 2017, the Sponsor
transferred 30,000 shares of Common Stock to Hochberg for his service as a director of the Company. The Common Stock held by Steven
Hochberg and reported herein is held for the benefit, and subject to the direction, of Deerfield Management. Up to 3,913 of the
shares of Common Stock held by Hochberg are subject to forfeiture depending upon the extent to which the underwriters in the IPO
exercise their over-allotment option.

The information set forth in Item 3 and
Item 6 is incorporated herein by reference.

The Reporting Persons have acquired the shares reported
herein for investment purposes. As set forth in the Company’s IPO prospectus, the Company was formed for the purpose of
effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination
with one or more businesses (a “Business Combination”). The members of the Sponsor are Deerfield Private
Design Fund IV and RAB (an affiliate of Richard Barasch, the President, Chief Executive Officer and Chairman of the Company
and manager of the Sponsor). Mr. Hochberg, an employee of Deerfield Management, is a manager of the Sponsor and serves on the
Company’s board of directors. The IPO prospectus discloses the Company’s management team’s belief
that Deerfield Management’s expertise, record of generating proprietary investment opportunities, and experience
evaluating, structuring and executing transactions in the healthcare industry, as well as Richard Barasch’s (an
affiliate of the Sponsor and potential member of a “group” with the Reporting Persons) track record in the
healthcare services sector, provide the Company with a competitive advantage. Consistent with the Sponsor and its
Members’ and managers’ anticipated roles with respect to the objectives of the Company, the Reporting Persons
anticipate that they and their representatives will, and/or may take action to cause the Sponsor or its representatives to,
communicate with members of the Company’s board of directors, members of the Company’s management and/or other
shareholders of the Company from time to time with respect to potential investment and acquisition opportunities and
operational, strategic, financial or governance matters, or otherwise work with management and the Company’s board of
directors to identify, evaluate, structure, negotiate, execute or otherwise facilitate a Business Combination. Among other
things, the Reporting Persons may introduce the Company to potential candidates for a Business Combination, or propose one or
more Business Combinations with potential candidates, which may include candidates that are affiliates of one or more
Reporting Persons or in which one or more Reporting Persons otherwise has an equity or other interest. In addition, as a
member of the board of directors of the Company, Hochberg will be involved in reviewing transactions that may result in a
Business Combination.