Jack Nathan Health Signs Letter of Intent

Rhea-AI Summary

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.

Positive

• Secured conditional funding to support cash flow requirements
• Entered into a non-binding LOI for a potential strategic transaction
• 30-day exclusivity period agreed with the other party

Negative

• No guarantee of a definitive agreement being signed
• Transaction details not yet disclosed
• Outcome of due diligence process uncertain

TORONTO--(BUSINESS WIRE)-- Jack Nathan Medical Corp. (TSXV: “JNH”; OTCQB: “JNHMF”) (the “Company”) announces that, further to recent Company press releases reporting that the Company will be exploring certain strategic alternatives (see the Company’s August 13, 2024 and August 7, 2024 press releases), the Company has entered into a non-binding letter of intent (the “LOI”) for a proposed transaction. The proposed transaction is subject to, among other things, the negotiation and execution of a definitive agreement (the “Definitive Agreement”) and the completion of satisfactory due diligence by the other party to the LOI. In connection with the execution of the LOI, the Company agreed to a 30-day exclusivity period with the other party and has secured conditional funding to support the Company’s cash flow requirements while the parties work towards negotiating and entering into the Definitive Agreement. The LOI does not create any legally binding obligations to enter into a Definitive Agreement, and no assurance can be provided that a Definitive Agreement will be signed. If a Definitive Agreement is signed, transaction details will be provided by the Company at that time.

About Jack Nathan Medical Corp.

Jack Nathan Medical Corp., operating as Jack Nathan Health®, is one of Canada’s largest healthcare networks. Jack Nathan Health® is an innovative healthcare company that is improving access for millions of patients by co-locating physician and ancillary medical services conveniently 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 centers, with both in-clinic physicians and digital telemedicine, so you and your loved ones can “Live Your Best Life”.

Jack Nathan Health® was established in 2006 and continues to expand its international footprint, delivering exceptional, state-of-the-art, turn-key medical centers in 243 locations globally, with 183 corporately owned and operated. In Canada, the Company has 80 clinics in Walmart locations in British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, and Quebec and 2 independent locations for a total of 82 clinics. There are currently 22 corporate owned and operated clinics of which 3 include Rehab services and 6 include MedSpa services. In Mexico, the Company has 155 corporate owned and operated clinics in Walmart locations, 5 clinics inside Walmart Distribution Centers servicing Walmart Associates, and 1 Multidisciplinary clinic. Jack Nathan Health, Mexico recently started operation of its first medical center in Mexico City.

For more information, visit www.jacknathanhealth.com or www.sedarplus.ca.

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.

Cautionary Note Concerning Going Concern
The Company has been actively pursuing opportunities for certain strategic options, which include the proposed transaction referred to in this press release. No assurance can be provided that these efforts will be successful. In the event the Company is unable to complete the proposed transaction referred to in this press release or another strategic option in the near term, the Company is not expected to continue as a going concern.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240913031716/en/

Jack Nathan Medical Corp., Mike Marchelletta, Vice Chairman; (416) 518-1000

Source: Jack Nathan Medical Corp.

FAQ

What is the latest development for Jack Nathan Health (JNHMF) regarding strategic alternatives?

Jack Nathan Health (JNHMF) has entered into a non-binding letter of intent (LOI) for a proposed transaction as part of its exploration of strategic alternatives.

Has Jack Nathan Health (JNHMF) secured any funding in connection with the LOI?

Yes, Jack Nathan Health (JNHMF) has secured conditional funding to support its cash flow requirements while negotiating towards a definitive agreement.

What is the duration of the exclusivity period agreed upon in the LOI for Jack Nathan Health (JNHMF)?

Jack Nathan Health (JNHMF) has agreed to a 30-day exclusivity period with the other party involved in the letter of intent.

Is the letter of intent (LOI) signed by Jack Nathan Health (JNHMF) legally binding?

No, the LOI signed by Jack Nathan Health (JNHMF) does not create any legally binding obligations to enter into a definitive agreement.