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Jack Nathan Health Acquires Five Canadian Medical Clinics in Cash and Stock Transaction
Friday 26 November 2021

Canadian medical clinics provider Jack Nathan Medical Corp. (TSX Venture: JNH) (OTCQB: JNHMF) has acquired five medical clinics located in British Columbia for an initial cash payment of USD525,000, and the issuance of 1,250,000 JNH common shares, the company said.

In addition to the initial consideration, there are total cash earnout payments of USD 975,000 and up to 2.95m 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.

Pursuant to the company's Equity Incentive Plan, the company has 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 acquisition adds over USD 5.0m in annualized revenue and expands the company's operational footprint and service offering throughout British Columbia.

JHN provides primary care medical clinics located in Walmart Superstores under the Jack Nathan Health brand in Canada and Mexico.

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.

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.
Date Published: 26/11/2021