Jack Nathan Health Acquires Second Medical Clinic in British Columbia

Rhea-AI Summary

Jack Nathan Medical Corp. (TSXV: JNH, OTCQB: JNHFM) has announced the acquisition of its second medical clinic in British Columbia, expanding its network within Walmart locations across Canada. This acquisition marks the seventh corporate-owned clinic for JNH. The Courtenay clinic joins other facilities to enhance patient access, offering various medical and paramedical services. The acquisition cost includes $97,200 in cash, 92,816 common shares, and potential earnout payments of up to $145,800 and 139,224 shares. This strategic growth aligns with JNH's mission to improve healthcare accessibility.

Positive

• Acquisition of the second clinic in British Columbia strengthens JNH's presence in Canada.
• Total consideration includes performance-related earnouts, indicating confidence in future clinic performance.
• Expansion into Walmart locations enhances accessibility and service offerings for patients.

Negative

• Initial cash and share issuance may indicate potential strain on capital reserves.
• Integration of new clinic services may pose operational challenges.

• Acquisition marks the Company’s Seventh corporate-owned and Operated Medical Clinic

TORONTO--(BUSINESS WIRE)-- Jack Nathan Medical Corp. (TSXV: JNH, OTCQB: JNHFM) (“Jack Nathan Health”, “JNH” or the Company”), a provider of primary care medical clinics located in Walmart® Supercentres under the Jack Nathan Health® brand in Canada and Mexico, today announced the acquisition of its second medical clinic in British Columbia, Canada. This marks the Company’s seventh corporate-owned and operating medical clinic within the Walmart Canadian footprint.

This newly acquired JNH medical clinic is located in the Walmart Supercentre in Courtenay, British Columbia and is within close proximity to its recently acquired medical clinic in Campbell River, as announced in June 2021. Through its growing network of medical practitioners, JNH will provide high-quality medical care to individuals and families and is open to walk-in patients during clinic hours.

“We continue to execute on our growth plans throughout Canada,” said Michael Marchelletta, Co-founder, and Interim Chief Executive Officer of Jack Nathan Health. “In 2021, we have acquired five medical clinics in Ontario and two in British Columbia, added two JNH MedSpas, acquired Writi Inc., and have expanded our footprint and service offerings. While COVID-19 challenges are still evident across the healthcare sector in Canada, we expect to drive growth and improve our bottom-line performance as we expand. Our goal remains to be the trusted medical resource for a larger population in Canada and Mexico.”

Dr. Glenn Copeland, Chief Medical Officer of Jack Nathan Health added, “We have the ability to expand our corporate run medical and paramedical service offerings, which in turn, provides greater value to patients in need of care. This is a critical element of our strategy -- to become a one-stop multi-disciplinary medical destination. Privately and corporately owned, we offer a multitude of services, including MedSpa, Rehab, Dental and other Specialty Programs. We have plans to introduce JNH MedSpa and JNH Rehab at other Walmart locations in Canada this year, while concurrently broadening our offering to deliver the best and most convenient patient experience.”

This newly acquired JNH medical clinic is located at 3199 Cliffe Ave., Courtenay, BC V9N 7S7, Canada. For more information on clinic hours and services, please contact us at 250-334-1512.

The consideration for the acquisition is comprised of an initial cash payment of $97,200 and the issuance of 92,816 JNH common shares. Additionally, there are total cash earnout payments of $145,800 and 139,224 JNH common shares, which are to be earned out over four separate six-month intervals spanning two years post-closing.

About Jack Nathan Medical Corp.

Jack Nathan Medical Corp., operating as Jack Nathan Health®, is one of Canada’s largest health care networks. Jack Nathan Health is an innovative health care company that is improving access for millions of patients by co-locating physician and ancillary medical services conveniently located inside Walmart® stores.

Jack Nathan Health provides an exceptional level of patient care, made possible through patient-centric physicians, a variety of medical services, technology, and programs, designed to put patients first. Our mission is to provide everyone access to the finest quality retail medical centres so you and your loved ones can “Live Your Best Life”.

Jack Nathan Health was established in 2006 and continues to expand its geographic footprint, delivering exceptional state-of-the-art, turn-key medical centres in 76 Walmart locations across Canada including British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, and Quebec, as well as 77 corporate-owned and operated locations in Mexico, in addition to servicing certain Walmart Distribution Centres in Mexico.

For more information, visit www.jacknathanhealth.com or www.sedar.com

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

Certain statements contained in this press release constitute "forward-looking information" as such term is defined in applicable Canadian securities legislation. The words "may", "would", "could", "should", "potential", "will", "seek", "intend", "plan", "anticipate", "believe", "estimate", "expect" and similar expressions as they relate to Jack Nathan are intended to identify forward-looking information. All statements other than statements of historical fact may be forward-looking information. Such statements reflect the Company's current views and intentions with respect to future events, and current information available to them, and are subject to certain risks, uncertainties, and assumptions Many factors could cause the actual results, performance or achievements that may be expressed or implied by such forward-looking information to vary from those described herein should one or more of these risks or uncertainties materialize. Such factors include but are not limited to: changes in economic conditions or financial markets; increases in costs; litigation; legislative and other judicial, regulatory, political, and competitive developments; the economic and business impact of COVID-19 and operational difficulties. This list is not exhaustive of the factors that may affect forward-looking information. These and other factors should be considered carefully, and readers should not place undue reliance on such forward-looking information. Should any factor affect the Company in an unexpected manner, or should assumptions underlying the forward-looking information prove incorrect, the actual results or events may differ materially from the results or events predicted. Any such forward-looking information is expressly qualified in its entirety by this cautionary statement. Moreover, the Company does not assume responsibility for the accuracy or completeness of such forward-looking information. The forward-looking information included in this press release is made as of the date of this press release and the Company undertakes no obligation to publicly update or revise any forward-looking information, other than as required by applicable law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210830005204/en/

Company Contact:

David Berman, CFO

David.berman@jacknathanhealth.com

Investor Relations Contact:

Prit Singh, Thesis Capital

psingh@thesiscapital.ca

Source: Jack Nathan Medical Corp.

FAQ

What is the recent acquisition by Jack Nathan Medical Corp.?

Jack Nathan Medical Corp. has acquired its second medical clinic in British Columbia, marking its seventh corporate-owned clinic.

How much did Jack Nathan Medical Corp. pay for the new clinic?

The acquisition involved an initial cash payment of $97,200 and the issuance of 92,816 common shares.

What are the potential additional costs associated with the acquisition of the new clinic?

There are earnout payments totaling $145,800 and 139,224 common shares to be paid out over two years.

How does this acquisition impact Jack Nathan Medical Corp.'s service offerings?

This acquisition enhances JNH's ability to provide a range of medical and paramedical services in new locations.

When was the acquisition of the Courtenay clinic announced?

The acquisition was announced as part of JNH's growth strategy in August 2021.