Mednow Enters Into National Distribution and Preferred Pharmacy Network (PPN) Agreement With Care Pharmacies; Announces Grant of Management Cease Trade Order

Rhea-AI Summary

Mednow Inc. (OTCQX:MDNWF) partners with Care Pharmacies to enhance its virtual pharmacy network across Canada. This collaboration aims to improve pharmacy distribution and access through a Preferred Pharmacy Network (PPN), expanding Mednow's services to more Canadians. Mednow will charge technology fees to participating pharmacies, further boosting its revenue streams. However, the company is currently under a Management Cease Trade Order (MCTO) due to delays in filing interim financial statements, impacting its operational transparency.

Positive

• Partnership with Care Pharmacies enhances Mednow's virtual pharmacy offering.
• Expansion into new regions increases access for Canadian patients.
• Mednow will collect technology fees, improving potential revenue streams.

Negative

• Management Cease Trade Order (MCTO) issued due to missed financial filing deadlines.
• Ongoing complications in coordinating with auditors may hinder financial transparency.

• Care Pharmacies is one of the largest consolidators of rural and remote pharmacies in Canada, with more than 55 pharmacy locations and growing.
• Mednow utilizes its proprietary technology to offer a transformed and highly engaging virtual pharmacy experience for its Mednow for Business Client Plan members, patients and customers.
• By enhancing pharmacy distribution, regional coverage and pharmacist access via a differentiated preferred pharmacy network (“PPN”), Mednow continues to build on its Mednow for Business offering.
• In addition to Mednow’s owned central fill pharmacies, 3rd party pharmacies that are part of Mednow’s PPN will enable Mednow to service more Canadians with localized pharmacy fulfillment with Mednow acting as the technology layer controlling their experience.
• Mednow will collect technology fees from participating pharmacies in exchange for access to members and an integrated technology solution powering 3rd party pharmacies patient engagement, communication and coordination.
• This is a first step in Mednow’s strategic vision to provide Canadian patients and independent pharmacies with a consumer-driven, highly engaging front end virtual pharmacy experience and the software which can support back-end virtual pharmacy operations.

 

TORONTO--(BUSINESS WIRE)-- Mednow Inc. (“Mednow” or the “Company”) (TSXV:MNOW) (OTCQX:MDNWF) Canada’s on-demand pharmacy, enhances its national virtual pharmacy offering by partnering with Care Pharmacies.

Mednow continues to build on its Mednow for Business offering by enhancing pharmacy distribution and pharmacist access via a differentiated preferred pharmacy network (“PPN”).

In addition to owned Mednow central-fill pharmacies, any pharmacies that are part of the Mednow PPN will enable Mednow to service more Canadians with localized pharmacy fulfillment. Mednow will collect fees for membership in the PPN, technology fees and other SAAS fees related to the virtual services provided by Mednow.

“We’re thrilled to deepen our presence in Canada, partnering with Care Pharmacies, in line with our goal of being a truly national pharmacy with presence all across Canada to serve Mednow patients where they live and work,” said Ali Reyhany, Mednow CEO. “Expanding Mednow’s footprint ensures we are able to deliver on our core commitment to providing the highest level of care and attention to individual patients and other healthcare practitioners, all while driving sustainable business growth for Mednow.”

By Partnering with Mednow in this PPN, Care Pharmacies can benefit from net new business in the fast growing PPN space.

Mednow Announces Grant of Management Cease Trade Order

Mednow announces today that further to its news release dated December 15, 2022, the Company has been granted a Management Cease Trade Order (“MCTO”) under National Policy 12-203 – Management Cease Trade Orders ("NP 12-203") by the British Columbia Securities Commission.

The Company applied for the MCTO in connection with missing the filing deadline of December 30, 2022 for filing unaudited interim financial statements and accompanying management's discussion and analysis and related CEO and CFO certificates for the period ended October 31, 2022 (collectively, the "Interim Filings"), as required under applicable Canadian securities laws.

The Company applied for the MCTO as a result of ongoing complications in coordinating with the Company’s auditors and collection of required data and documentation to complete the review of the Company and its various subsidiaries, during the period ended October 31, 2022.

The Company expects to file the Interim Filings as soon as they are available, but in any event no later than January 31, 2023, and will issue a news release once the Interim Filings have been filed. Until the Company files the Interim Filings, it will comply with the alternative information guidelines set out in NP 12-203. The guidelines, among other things, require the Company to issue bi-weekly default status reports, in the form of news releases, for so long as the Interim Filings have not been filed.

During the MCTO, the general investing public will continue to be able to trade in the Company's Class A Common Shares listed on the TSX Venture Exchange. However, the Company's Chief Executive Officer and Chief Financial Officer and such other directors, officers and persons as determined by the applicable regulatory authorities will not be able to trade in the Company's shares, nor will the Company be able to, directly or indirectly, issue securities to or acquire securities from an insider or employee of the Company except in accordance with legally binding obligations to do so existing as of December 30, 2022, being the date of the Company’s continuous disclosure default.

The Company is not currently subject to any insolvency proceedings. If the Company provides any information to any of its creditors during the period in which it is in default of filing the Interim Filings, the Company confirms that it will also file material change reports on SEDAR containing such information.

ON BEHALF OF THE BOARD OF DIRECTORS

Per:

Amir Ali Reyhany-Bozorg, CEO

About Care Pharmacies

Care Pharmacies is the largest Canadian group of independent pharmacies that are majority owned and controlled by Licensed Pharmacists. Care has a 15-year track record of integrity, innovation and respect for the profession of pharmacy. With over 55 locations across Canada Care Pharmacies provides key health care to traditionally underserved areas.

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 labelled 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 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 future estimates, plans, objectives, timing, assumptions or expectations of future performance, are forward-looking statements and contain forward-looking information, including statements relating to: Mednow’s plan to expand its operations and open fulfillment centres in certain locations in 2023, Mednow’s goal of integrating the technology of its strategic business acquisitions with its core fulfillment pharmacies, the optimization of Mednow’s PillSmart TM and nutraceutical offerings, Mednow’s ability to connect with employers, specialty doctors and large pharmacies, and Mednow’s ability to acquire customers and lower costs.

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. 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. Risk factors are set out in the Company’s final long form prospectus dated February 26, 2021 available for review on the Company’s profile at www.sedar.co . 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.

This news release also contains future-oriented financial information and financial outlook information (collectively, “FOFI”) as defined under Canadian securities laws, prepared by Mednow’s management about Mednow’s reasonably estimated prospective results of operations, revenue, sales, and components thereof, all of which are subject to the same assumptions, risks factors, limitations and qualifications set forth in the above paragraphs. Readers are cautioned that FOFI are not guarantees of future performance, and should not be considered as such, since actual results may differ materially from those expressed in FOFI. Mednow and its management believe that FOFI has been prepared on a reasonable basis, reflecting management’s best estimates and judgements. FOFI contained in this news release were made as of the date of this news release and is provided for the purpose of describing the belief of Mednow’s management of the anticipated effects of the financing on Mednow’s business operations.

As a result, there can be no assurance that forward-looking information or FOFI will prove to be accurate, as actual results and future events could differ materially from those anticipated in this news release. Accordingly, readers should not place undue reliance on the forward-looking information or FOFI contained in this news release. Mednow does not undertake any obligation to publicly update or revise any forward-looking information or FOFI other than as required under applicable securities laws.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230104005384/en/

Investor:

Benjamin Ferdinand

1-855-686-6300

ir@mednow.ca

Source: Mednow Inc.

FAQ

What is Mednow's partnership with Care Pharmacies about?

Mednow has partnered with Care Pharmacies to enhance its virtual pharmacy network and improve distribution across Canada.

How will Mednow benefit from the Preferred Pharmacy Network?

Mednow will charge technology fees to pharmacies in the PPN, potentially increasing its revenue.

What is the significance of the Management Cease Trade Order for Mednow?

The MCTO restricts trading for key executives due to missed financial filing deadlines, affecting investor trust.

What are the expected filing deadlines for Mednow's interim financial statements?

Mednow expects to file the interim financial statements no later than January 31, 2023.