Mednow Announces the Execution of Cost Reductions Through the Wind-Down of Two Subsidiaries

TORONTO--(BUSINESS WIRE)-- Mednow Inc. (TSXV: MNOW) (OTCQX: MDNWF), Canada’s on-demand virtual pharmacy, announced today that Liver Care Canada Inc. has permanently ceased ordinary course business operations. London Pharmacare Inc. will commence its closure in the near-future.

Liver Care Canada Inc. and London Pharmacare Inc. (together, “Liver Care”)’s shutdown is part of Mednow’s ongoing efforts to improve its business by, among other things, eliminating underperforming business lines, in accordance with its previous announcements.

Liver Care is focused on ensuring patient care is not adversely affected by its decision to terminate operations. Over the past year, Liver Care’s business has been suffering from increased cash burn, which resulted in London Pharmacare Inc. being in technical breach of certain financial covenants under their credit facilities, which had approximately $2.8 million outstanding. London Pharmacare Inc.’s lender proceeded with removing approximately $240,000 on May 2, 2023 from its accounts without prior notice, capped its credit facilities and terminated availability under Mednow’s credit card facility in the amount of approximately $20,000. London Pharmcare Inc. is in discussions with the lender with regards to the actions taken. Infusicare Canada Inc. is in technical breach of certain financial covenants under their credit facilities under which approximately $950,000 is outstanding, and is in discussions with their lender.

About Mednow

Mednow (TSXV: MNOW) (OTCQX: MDNWF) is a healthcare technology company offering virtual access with a high-standard of care. Designed with accessibility and quality of care in mind, Mednow provides virtual pharmacy and telemedicine services as well as doctor home visits through an interdisciplinary approach to healthcare that is focused on the patient experience. Mednow’s services include free at-home delivery of medications, doctor consultations, a user-friendly interface for easy upload, transfer, and refill of prescriptions, access to healthcare professionals through an intuitive chat experience and the specialized PillSmart™ system that packages prescriptions in easy to use daily dose packs, each labeled with the date and time of the next dose.

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

Cautionary Note Regarding Forward-Looking Statements:

This release includes certain statements and information that may constitute forward-looking information within the meaning of applicable Canadian securities laws. All statements in this news release, other than statements of historical facts, including statements regarding the terms of the Offering, the anticipated use of proceeds of the Offering, and Mednow expecting to maintain its standard of pharmacy care, while reducing operational costs, are forward-looking statements and contain forward-looking information. Generally, forward-looking statements and information can be identified by the use of forward-looking terminology such as “intends” or “anticipates”, or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “should”, “would” or “occur”. Forward-looking statements are based on certain material assumptions and analysis made by the Company and the opinions and estimates of management as of the date of this press release including that the Offering will close and will do so on the anticipated terms; that the Company will use the net proceeds in the manner contemplated; and that Mednow will maintain its standard of pharmacy care, while reducing operational costs. These forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements or forward-looking information. Important factors that may cause actual results to vary, include, without limitation, that the Offering will not close or will not close on the anticipated terms or timeline; that the Company will not be able to utilize the proceeds in the manner contemplated; and that Mednow will not maintain its standard of pharmacy care, while also not reducing operational costs. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking information. Readers are cautioned that reliance on such information may not be appropriate for other purposes. The Company does not undertake to update any forward-looking statement, forward-looking information or financial out-look that are incorporated by reference herein, except in accordance with applicable securities laws.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230509005853/en/

Investor contact:

Lorraine Cardenas

1-855-686-6300

ir@mednow.ca

Source: Mednow Inc.