Mednow Digital Pharmacy Integrates Pharmacist House Calls Into Medvisit, Its Doctor Home Visit Company, and Announces Amended Terms and Upsize of Senior Secured Convertible Debenture Financing

Rhea-AI Summary

Mednow Inc. (TSXV:MNOW, OTCQX:MDNWF) expands services through its Medvisit platform, Canada's largest home visit doctor service. The new at-home medication review program, under the Ontario Drug Benefits Program, enables pharmacists to manage medication for housebound patients, enhancing care efficiency. Medvisit, operational for over 30 years, has served over 400,000 patients. Additionally, Mednow has amended its private placement offering of secured convertible debentures to up to $4,000,000 to support strategic acquisitions and working capital.

Positive

• Expansion of service offerings with the at-home medication review program.
• Track record of Medvisit in serving over 400,000 patients enhances market credibility.
• The offering of $4,000,000 in secured convertible debentures aimed at strategic acquisitions and working capital.

Negative

• None.

• Medvisit is Canada’s oldest doctor home visit company and the largest in the Greater Toronto Area (GTA). It was acquired by Mednow in August 2021
• Mednow Pharmacists will perform an in-home medication review and medication cabinet clean up for eligible housebound patients under the Ontario Drug benefits program
• The Medication reconciliation will attempt to flag any potential medication issues for the physician in an easy-to-use report
• Medvisit service has been provided to over 400,000 patients in the GTA, serviced by over 100 Doctors
• Mednow Pharmacy continues it’s push for more clinical services for patients, provided conveniently at their homes

TORONTO--(BUSINESS WIRE)-- Mednow Inc (TSXV:MNOW) (OTCQX:MDNWF), Canada’s on-demand virtual pharmacy has expanded its suite of services to its at-home Medvisit and other patients.

Medvisit’s expanded suite of services includes an at-home medication review program for patients who are not physically able to attend a community pharmacy. The addition of the at-home medication review program, conducted by our team of licensed traveling pharmacists, allows the physician who will see the patient afterwards to focus on treating the patient and not on performing a medication history. Pharmacists are experts in drug therapy and can help as part of the medical team to make processes more efficient. The service is covered for eligible and consenting patients by the Ontario Drug Benefits Program. It is an example of non-dispensing related revenue available to pharmacies in Canada’s largest province.

“By offering this service to patients who are unable to physically visit a pharmacy, we believe we are able to improve medication management and adherence, leading to better health outcomes for our patients. The key is collaborating with the physicians who appreciate a pharmacist doing the medication reconciliation. We all know a senior who could use help cleaning out their medication cabinet, doing a run through of all their medications with a pharmacist, and ensuring that a pharmacist-doctor team can help where needed. We are confident that this program will be well-received by both our existing Medvisit patients and new users and look forward to its contribution to our overall growth and success. Most importantly it is in line with our promise to bring the power of the pharmacy and pharmacist conveniently to where people live,” says CEO and Co-Founder, Ali Reyhany.

Medvisit is Canada’s largest and longest standing doctor house call service, having been in operation for over 30 years. Medvisit conducts approximately 30,000 patient home visits per year and has served over 400,000 patients since inception. Patients that are unable to leave their home rely on over 100 doctors in the Medvisit network for the treatment of acute and episodic illness and injury.

The combination of pharmacy and doctor home visits through the Mednow platform has created synergies that greatly benefit patients. By offering a comprehensive review of their medications and treatment plan prior to our in-home medication visits, Mednow and Medvisit are able to provide the highest level of care at the forefront of chronic disease management.

“Medvisit is a very attractive platform for Mednow as we strive to become a household name in Canadian healthcare. Combined with our virtual care business, we can now send a physician to a patient’s home when a virtual visit is not adequate to meet the patients needs in the GTA. Our fully digital pharmacy, unique medication adherence solutions and telemedicine offering are ideal compliments for Medvisit’s client base that have limitations on mobility. The market for pharmacy and healthcare services in Canada is large and remains ripe for positive disruption. Mednow aims to continue adding services to its platform that change the way healthcare is delivered to patients,” said Ali Reyhany, CEO and Co-Founder of Mednow.

Through the Medvisit patient network, Mednow is well positioned to offer a full platform of services to a large subset of patients that can benefit greatly from a full suite of digital healthcare and delivery services.

Mednow is focused on improving delivery of pharmacy services in Canada through digitization to provide better patient access to pharmacists, doctors and other healthcare professionals. Mednow offers instant access to pharmacists in the Mednow app (Apple | Android | web browser) or on the phone (1-855-MEDNOW-1) and offers fast, free delivery of prescription medication to patients across Canada.

Mednow is also pleased to announce that further to its news release dated November 7, 2022, the Company has amended the terms and increased the size of its private placement offering of secured convertible debentures (each, a “Convertible Debenture”) to up to $4,000,000 (the “Offering”). In addition, the Company has elected to carry out the Offering on a non-brokered basis as opposed to a "commercially reasonable efforts" agency offering basis as previously contemplated. In connection with the revised terms of the Offering, the TSX Venture Exchange (the “TSXV”) has approved an extension for completion of the Offering to February 9, 2023.

The Company has amended certain terms applicable to the Convertible Debentures previously announced on November 7, 2022. Each Convertible Debenture will bear interest at a rate of 12.0% per annum and mature eighteen (18) months following the date of issuance (the “Maturity Date”). The principal amount of each Convertible Debenture (the “Principal Amount”) will be convertible into 5,555 units (each a “Unit”) based on a conversion price of $0.18 per Unit (the “Conversion Price”). Each Convertible Debenture will be convertible at the option of the holder at any time during the period beginning on the later of: (i) the four month anniversary of the date of issuance of the Convertible Debenture; and (ii) the date on which the Company completes an equity financing with aggregate proceeds to the Company of at least $4,000,000 (other than pursuant to the Offering), and ending on the Maturity Date.

Each Unit will consist of one Class A common share in the capital of Mednow (a “Common Share”) and one Common Share purchase warrant (a “Warrant”). Each Warrant will entitle the holder thereof to purchase one Common Share at a price of $0.25 per Common Share for a period of 48 months from the date of issuance thereof, subject to applicable policies of the TSXV.

The net proceeds received by the Company from the Offering are intended to be used for strategic acquisition opportunities, working capital and for general corporate purposes. The Convertible Debentures issued pursuant to the Offering will be subject to a statutory hold period of four months from the date of issuance.

The Offering remains subject to receipt of TSXV approval and all other necessary regulatory approvals.

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.

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 news release contains forward-looking information within the meaning of Canadian securities laws. Such information includes, without limitation, information regarding the terms of the Offering and the intended use of proceeds from the Offering. Although Mednow believes that such information is reasonable, it can give no assurance that such expectations will prove to be correct.

Forward looking information is typically identified by words such as: “believe”, “expect”, “anticipate”, “intend”, “estimate”, “postulate” and similar expressions, or are those, which, by their nature, refer to future events. The Company cautions investors that any forward-looking information provided by the Company is not a guarantee of future results or performance and that such forward-looking information is based upon a number of estimates and assumptions of management in light of management’s experience and perception of trends, current conditions and expected developments, as well as other factors that management believes to be relevant and reasonable in the circumstances, as of the date of this news release including, without limitation, that the Offering will close and will do so on the proposed terms; that the Company will be able to utilize the net proceeds of the Offering in the manner intended; that general business and economic conditions will not change in a material adverse manner; that applicable regulatory approvals will be received; and assumptions regarding political and regulatory stability and stability in financial and capital markets.

Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to differ materially from any future results, performance or achievements expressed or implied by the forward-looking statements. Such risks and other factors include, among others: the risk that the Company may not complete additional tranches of the Offering; the risk that the Offering may not be completed on the anticipated terms; the risk that required regulatory approvals, including approval of the TSXV, for the Offering are not obtained; the risk that the Company may not be able to use the proceeds of the Offering as intended; the state of the financial markets for the Company’s securities; recent market volatility and potentially negative capital raising conditions resulting from the continued COVID-19 pandemic and risks relating to the extent and duration of such pandemic and its impact on global markets; the conflict in Eastern Europe; the Company’s ability to raise the necessary capital or to be fully able to implement its business strategies; and other risks and factors that the Company is unaware of at this time.

The forward-looking statements contained in this news release are made as of the date of this news release. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

The securities referred to in this news release have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons absent U.S. registration or an applicable exemption from the U.S. registration requirements.

This news release does not constitute an offer for sale of securities, nor a solicitation for offers to buy any securities.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230112005306/en/

Investor:

Benjamin Ferdinand

1-855-686-6300

ir@mednow.ca

Source: Mednow Inc.

FAQ

What new service did Mednow introduce for patients in Ontario?

Mednow introduced an at-home medication review program for housebound patients under the Ontario Drug Benefits Program.

How many patients has Medvisit served?

Medvisit has served over 400,000 patients in the Greater Toronto Area.

What is the total amount of Mednow's amended private placement offering?

Mednow amended its private placement offering to up to $4,000,000.

What is the significance of the collaboration between Mednow and Medvisit?

The collaboration enhances patient care by combining pharmacy services and doctor home visits, improving medication management.