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Jack Nathan Health Acquires Five Medical Clinics in British Columbia

V.JNH | November 24, 2021

Accretive acquisition adds over $5.0 million in annualized revenue and expands the Company’s operational footprint and service offering throughout British Columbia

Jack Nathan Medical Corp. (TSXV: JNH, OTCQB: JNHMF) (“Jack Nathan Health”, “JNH” or the “Company”), a provider of primary care medical clinics located in Walmart® Supercentres under the Jack Nathan Health® brand in Canada and Mexico, today announced the acquisition of five medical clinics in British Columbia, Canada. As a result of the acquisition, JNH will have 15 corporate-owned and operating medical clinics, seven of which are based in British Colombia, as part of 76 clinics JNH has across Canada.

Overview of Newly Acquired Medical Clinics

Annualized revenue estimated to be over $5.0 million
All five locations are profitable and should significantly improve JNH’s top- and bottom-line results
Combined total of approximately ~7,900 ft2 of medical clinic operations.

The transaction is the Company’s largest accretive acquisition to date and is part of JNH’s growth strategy to convert its licensed clinics into corporate-owned medical centers, which will substantially increase JNH’s revenue potential, in addition to JNH’s ongoing expansion across Canada and Mexico.

The five medical clinics acquired are fully operational and have a wide network of medical professionals serving a population estimated at over 4.8 million and growing1. Jack Nathan Health will be able to capitalize on new growth opportunities by offering additional medical and ancillary services at these clinics.

Dr. Glenn Copeland, Chief Executive Officer and Chief Medical Officer stated, “This acquisition represents a major milestone for our Company given that it strengthens our presence in British Columbia. The acquired clinics offer synergistic opportunities and will significantly increase our annual revenue run-rate, resulting in improved bottom-line performance. We are adding a team of highly skilled and experienced doctors and support staff, who have been retained in this transaction to continue providing services to a growing patient network in need of the best medical care. Our goal is to make Jack Nathan Health synonymous with the highest quality medical care throughout the countries we serve, and we remain focused on enhancing the patient experience as well as providing medical coverage, related health, wellness and specialty services in one, convenient multi-disciplinary healthcare destination.”

As announced in May 2021, the Company intends to open a new, large format medical clinic in Victoria, British Columbia (“Hillside”), which is approximately 4,000 ft2. Once operational, the Company intends to integrate services from its acquired clinics, providing established medical practices and a network of patients to service with the Walmart Hillside location, which is expected to open in Spring 2022.

The consideration for the acquisition is comprised of an initial cash payment of $525,000 and the issuance of 1,250,000 JNH common shares. Additionally, there are total cash earnout payments of $975,000 and up to 2,950,000 JNH common shares, which are to be earned out over four separate six-month intervals spanning two years post-closing and tied to performance measures.

Corporate Update

Pursuant to the Company’s Equity Incentive Plan, the Company as issued a total of 502,506 Deferred Share Units (“DSUs”) to the Company’s three independent directors for their services for 9 months ended of October 31, 2021. The DSUs vest immediately and can be exchanged for shares when a director leaves the board of JNH. The Company also issued 550,000 share purchase options to management, employees, and consultants, which included 450,000 share purchase options, issued to two officers of the Company. These share purchase options have an exercise price of $0.205, vesting over 24 months, and expiring in 7 years.

(1) https://worldpopulationreview.com/canadian-provinces

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 located 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 centres, 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 centres. In Canada, the Company has 76 clinics in Walmart locations in British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, and Quebec, and is contracted to open three more new clinics in 2021/22. In Mexico, the Company owns 115 corporate owned and operated clinics in Walmart locations. For more information, visit www.jacknathanhealth.com or www.sedar.com.

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.

Certain statements contained in this press release constitute "forward-looking information" as such term is defined in applicable Canadian securities legislation. The words "may", "would", "could", "should", "potential", "will", "seek", "intend", "plan", "anticipate", "believe", "estimate", "expect" and similar expressions as they relate to Jack Nathan are intended to identify forward-looking information. All statements other than statements of historical fact may be forward-looking information. Such statements reflect the Company's current views and intentions with respect to future events, and current information available to them, and are subject to certain risks, uncertainties, and assumptions Many factors could cause the actual results, performance or achievements that may be expressed or implied by such forward-looking information to vary from those described herein should one or more of these risks or uncertainties materialize. Such factors include but are not limited to: changes in economic conditions or financial markets; increases in costs; litigation; legislative and other judicial, regulatory, political, and competitive developments; the economic and business impact of COVID-19 and operational difficulties. This list is not exhaustive of the factors that may affect forward-looking information. These and other factors should be considered carefully, and readers should not place undue reliance on such forward-looking information. Should any factor affect the Company in an unexpected manner, or should assumptions underlying the forward-looking information prove incorrect, the actual results or events may differ materially from the results or events predicted. Any such forward-looking information is expressly qualified in its entirety by this cautionary statement. Moreover, the Company does not assume responsibility for the accuracy or completeness of such forward-looking information. The forward-looking information included in this press release is made as of the date of this press release and the Company undertakes no obligation to publicly update or revise any forward- looking information, other than as required by applicable law.