JACK NATHAN MED CORP - JNHMF STOCK NEWS

Jack Nathan Medical Corp. (TSXV: JNH; OTCQB: JNHMF) has agreed to sell its Canadian business to WELL Health Technologies for Cdn$5,000,000 in cash. The deal includes the extinguishment of over Cdn$15,000,000 debt owed to Wal-Mart Canada. Post-transaction, the company will retain its Mexican operations, including 155 Walmart-based clinics, 5 distribution center clinics, and 1 multidisciplinary clinic. WELL is providing an interim credit facility of up to $750,000 at 12% interest. The deal requires shareholder approval, with 24.36% of shareholders already committed. As part of the agreement, JN Mexico will share 10% of profits in year one and 25% thereafter with Walmart, until Cdn$4 million is paid.

Jack Nathan Health (TSXV: JNH, OTCQB: JNHMF) reported a 21% revenue increase for Q2 fiscal 2025. Revenues for the six months ended July 31, 2024, were $10,670,548, up from $8,795,598 in 2023. Clinic operations accounted for 90% of total revenues, reflecting the company's focus on expanding corporate-owned medical centers. Despite revenue growth, the company reported an increased operating loss of $3,175,561 for the six-month period, mainly due to higher expenses related to clinic operations and new clinic openings.

As of July 31, 2024, Jack Nathan Health operates 82 clinics in Canada and 161 clinics in Mexico, including 155 in Walmart locations. The company's cash position decreased to $768,012 from $3.07 million in January 2024. On September 13, 2024, the company signed a non-binding letter of intent for a proposed transaction as part of its strategic alternatives exploration.

Jack Nathan Medical Corp. (TSXV: JNH; OTCQB: JNHMF) has announced a significant development in its strategic alternatives exploration. The company has entered into a non-binding letter of intent (LOI) for a proposed transaction. This follows recent press releases indicating the company's intention to explore strategic options.

Key points of the announcement include:

• A 30-day exclusivity period with the other party
• Conditional funding secured to support cash flow requirements
• The transaction is subject to due diligence and negotiation of a definitive agreement

The company emphasizes that the LOI does not create legally binding obligations, and there's no guarantee that a definitive agreement will be signed. If an agreement is reached, Jack Nathan Health will provide transaction details at that time.

Jack Nathan Health® (TSXV: JNH; OTCQB: JNHMF), a leading Canadian healthcare network, is exploring strategic options including mergers and acquisitions. The company operates 243 locations globally, with 183 corporately owned and operated. In Canada, it has 82 clinics, including 80 inside Walmart stores. In Mexico, Jack Nathan Health® has 155 corporate-owned clinics within Walmart locations and recently opened its first medical center in Mexico City.

The company is creating a comprehensive data room for interested parties to explore potential partnerships. However, Jack Nathan Health® requires additional financing to continue operations and is actively pursuing alternatives to raise necessary funds. Without this financing, the company may not have sufficient funds to meet its obligations, raising concerns about its ability to continue as a going concern.

Jack Nathan Medical Corp. (TSXV: JNH; OTCQB: JNHMF) has secured an additional Cdn$474,000 in debt funding from Wal-Mart Canada Corp., its secured lender. This funding is intended to support the company's operations for August 2024 while it pursues alternative financing and explores strategic options. The loan is an extension of the existing secured credit facility from September 27, 2022, with a 7% annual interest rate.

Concurrently, Jack Nathan Health is developing a Transition Plan for an orderly wind-down of its business and assets if additional financing is not secured soon. The company continues to assess strategic initiatives to optimize operations and consider M&A opportunities to strengthen its financial position. However, there are no guarantees of success in these efforts.

Jack Nathan Medical Corp. (TSXV: JNH; OTCQB: JNHMF) has announced two key personnel changes in a recent corporate update. Mark Redinger has resigned from his position as a director of the company. Additionally, Geoffrey Farr has stepped down from his role as Corporate Secretary. The company has expressed its gratitude to both Mr. Redinger and Mr. Farr for their contributions during their respective tenures. This brief announcement provides insight into the ongoing changes within Jack Nathan Health's leadership structure.

Jack Nathan Medical Corp. announced the results of its annual and special shareholders' meeting held on June 27, 2024. All agenda items were approved, including the election of directors with voting percentages ranging between 86.9% and 89.6%. Additionally, MNP LLP was reappointed as the company's auditors, with an overwhelmingly favorable vote of 99.97%. A resolution to grant stock options under the Omnibus Equity Incentive Plan was also passed. Bharat Choudhary, the CFO, is resigning effective June 28, 2024, and the company is actively searching for his replacement.

Jack Nathan Health (TSXV: JNH, OTCQB: JNHMF) announced its Q1 fiscal 2025 financial results, highlighting a 25% revenue growth to $5.28 million, driven by its clinic operations and expansion to 243 locations globally. Despite the revenue increase, the company reported an operating loss of $1.61 million due to higher expenses associated with new clinic openings. The company now operates 82 clinics in Canada and 161 clinics in Mexico, predominantly within Walmart locations. As of April 30, 2024, JNH reported cash of $1.77 million, total assets of $8.90 million, and total liabilities of $16.77 million. The company has 87,099,159 common shares outstanding and a secured convertible debenture with Walmart worth $8 million, maturing in July 2026.

Jack Nathan Health reported a 24% growth in revenue for the fiscal year 2024, reaching $19.1 million. The company expanded to 245 locations globally, with a focus on Canada and Mexico. The partnership with Walmart drove robust financial outcomes, leading to an increase in revenue. The company opened 9 new clinics in Canada and experienced significant growth in Mexico. Operating expenses decreased, resulting in a smaller net loss compared to the previous year. The balance sheet showed an increase in cash and total assets, with total liabilities also increasing. The company had 87,099,159 common shares outstanding as of January 31, 2024.