Jack Nathan Mexico Update

Rhea-AI Summary

Jack Nathan Medical Corp (TSXV: JNH; OTCQB: JNHMF) announces critical developments regarding its Mexico operations. The company has been unable to reach an agreement with Walmart Mexico for business continuity of its 171 healthcare facilities within Walmart Mexico stores and distribution centres.

Following unsuccessful negotiations, Walmart Mexico has issued termination notices, with operations expected to cease by May 31, 2025. The company is actively exploring strategic alternatives, including:

• Selling Mexico operations to a successor
• Establishing partnerships with new retail and corporate entities
• Potential mergers and acquisitions

A comprehensive data room will be available to qualified interested parties. Without securing a new agreement or M&A transaction, JNH faces a potential wind-down of its Mexican operations.

Positive

• Large operational presence with 171 healthcare facilities in Mexico
• Active exploration of strategic alternatives and M&A opportunities
• Data room being prepared for potential investors/partners

Negative

• Loss of important Walmart Mexico partnership
• Potential complete shutdown of Mexico operations by May 31, 2025
• No guaranteed success in securing new partnerships or M&A deals
• Risk of total market exit from Mexico

TORONTO--(BUSINESS WIRE)-- Jack Nathan Medical Corp. (TSXV: "JNH"; OTCQB: "JNHMF"), operating as Jack Nathan Mexico & Jack Nathan MedSpa (the "Company" or “JNH”), as one of Mexico’s largest private healthcare networks and a premier MedSpa operator in Canada, announces that it continues to evaluate and consider opportunities for continuity of operations with new retail and corporate partners, as well as strategic options including mergers and acquisitions for its Mexico subsidiary (M&A).

As reported in the Company’s March 19, 2025 press release, JNH Mexico has been unable to ratify terms for continuity of business with Walmart Mexico, and the Company had notified Walmart Mexico to consider evaluating all strategic options, including: (a) consenting to permit JNH to sell it’s Mexico operations to a successor in order to maintain continuity of operations of the Company’s 171 facilities within Walmart Mexico stores and distribution centres, or (b) consider continuity of business with Jack Nathan Mexico with either existing or amended terms, or (c) consent to develop a bilateral transition plan and avoid ceasing operations and a wind down scenario. An agreement has not been reached and termination notices have been provided by Walmart Mexico to JNH Mexico. The Company expects to cease operations within Walmart Mexico’s stores by May 31, 2025.

The Company is continuing to explore strategic options for continuity of operations in Mexico with several new potential retail and corporate partners. As part of this initiative, a comprehensive data room will be available post-qualification to interested parties. The comprehensive data room, available after qualification, will provide detailed insights and opportunities for potential partners and other interested parties. The Company invites interested parties to explore the wealth of information and possibilities that Jack Nathan Mexico® has to offer.

If an agreement for a commercial or M&A transaction for JNH Mexico is signed, further details will be provided by the Company at that time. No assurances can be provided that any of these efforts will be successful. In the absence of being able to secure such an agreement, the Company is facing a wind down scenario of its Mexico operations.

About Jack Nathan Medical Corp.

Jack Nathan Health®, a pioneer in the healthcare industry, became one of Canada & Mexico’s largest retail healthcare networks as an innovative healthcare company focused on improving access for millions of patients by co-locating physician and ancillary medical services conveniently inside Walmart® stores, providing 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.

Established in 2006, Jack Nathan Health® has grown its international footprint, delivering state-of-the-art, turn-key medical centers. Currently, the Company operates 175 locations globally, all corporately owned and operated. In Canada, the Company has 4 corporate owned clinics in Alberta & Ontario, providing MedSpa services. In Mexico, the Company has 171 corporate owned clinics across Mexico within 3 divisions, including 165 retail clinics, 5 clinics inside Walmart Distribution Centers servicing Walmart Associates, and 1 multidisciplinary clinic.

For more information, visit www.jnhmexico.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

As previously reported by the Company in its consolidated financial statements and related management’s discussion and analysis filed on SEDAR+ (www.sedarplus.ca), the Company requires additional financing to enable it to continue operations. In the absence of additional financing in the near term, the Company is not expected to have sufficient funds to meet its obligations. The Company is actively pursuing alternatives to raise the necessary additional financing. There can be no assurances that the Company will be able to secure the necessary financing to enable it to continue as a going concern.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250404589452/en/

Jack Nathan Medical Corp., Mike Marchelletta, Chief Executive Officer; phone: (416) 518-1000.

Source: Jack Nathan Medical Corp.

FAQ

When will Jack Nathan Medical (JNHMF) cease operations in Walmart Mexico stores?

Jack Nathan Medical will cease operations within Walmart Mexico stores by May 31, 2025.

How many facilities does JNHMF currently operate in Walmart Mexico?

JNHMF operates 171 healthcare facilities within Walmart Mexico stores and distribution centres.

What strategic options is JNHMF exploring for its Mexico operations?

JNHMF is exploring selling operations to a successor, establishing new retail partnerships, and potential mergers and acquisitions.

What happens if JNHMF fails to secure new partnerships in Mexico?

If no new agreements or M&A transactions are secured, JNHMF faces a wind-down scenario of its Mexico operations.