Company reports approximately 26% increase in revenues; completes several accretive acquisitions; and makes changes to its leadership team.

Jack Nathan Medical Corp. (TSXV: JNH, OTCQB: JNHMF) (“Jack Nathan Health”, “JNH” or the “Company”) announced today its unaudited financial results for the first quarter of fiscal 2022, which ended April 30, 2021. Jack Nathan Health’s financial statements are prepared in accordance with International Financial Reporting Standards (“IFRS”).

Management Commentary

Commenting on the Company’s business momentum, Michael Marchelletta, Co-founder and Interim Chief Executive Officer stated, “We made significant progress this year executing our strategy and building a strong foundation to support what we believe, will be significant growth in the coming years. We expanded our footprint through the opening of new, corporate owned and operated clinics inside Walmart stores, and through the acquisition of MedSpas. We currently have 76 operating clinics in Walmart Canada, and we will be opening three additional clinics by late 2021 and early 2022. Further, we have big expansion plans with Walmart Mexico. In the beginning of 2021, we had six locations and now have 52 that are operational and corporate owned. We will be opening 151 new clinics over the next six-months, bringing the total number in Mexico to 203. This will transform our business and should lead to top- and bottom-line improvements in fiscal 2022 and beyond.”

Mr. Marchelletta continued, “While first quarter revenues grew over the comparable fiscal 2021 period, the rate of growth was slower than anticipated due to the global pandemic, provincial constraints in Canada, and the timing of acquisitions. We are active with multiple acquisition opportunities and new business ventures, which could further extend our reach into new markets and geographies. Additionally, we have begun to own and operate clinics in Canada, as this model significantly improves our financial performance and enables us to provide better access to standardized, comprehensive, high quality healthcare under one roof at Walmart locations. We are investing in our future, processes and people, and technology capabilities, all of which are critical elements of our strategy. We have a lot of exciting opportunities ahead of us and are building a strong team to execute our plan and enhance shareholder value.”

Q1 Fiscal 2022 Business Milestones and Forward-Looking Commentary

• On February 17, 2021, the Company completed its acquisition of two MedSpas, expanding the treatment and services offered to JNH medical practitioners and patients. These two MedSpas are walk-in medical clinics inside Walmart stores in Ontario and offer a complete range of both surgical and non-surgical treatments for facial and body rejuvenation and aesthetics. While acquired in Q1 fiscal 2022, revenue contributions were immaterial due to provincial restrictions related to the global pandemic. Both facilities are scheduled to re-open in July 2021 and are anticipated to be accretive once operational. The Company believes there is significant pent-up demand for MedSpa services and intends to roll-out new MedSpas in other corporate owned locations in Canada this fiscal year.

• On March 8, 2021, the Company completed the acquisition of four operational medical clinics, located inside Walmart stores in Ontario. These four clinics served as the first corporate owned and operated medical clinics, and JNH will be providing a range of services, including telemedicine and virtual consultations, primary physician and family care, walk-in services, cardiac care and prevention, orthopedic and sports medicine, physiotherapy and chiropractic services, corporate and executive health services, MedSpa, and more. The Company believes it will grow revenues and drive bottom-line performance over the next several years as there are opportunities to expand services and improve margins.

• On March 22, 2021, the Company acquired an 8,172 sq. ft. flagship medical clinic in Ontario. This turnkey operation is anticipated, once built out, to generate approximately $500 per sq. ft., with significant opportunities for growth, as this facility represents the largest in the JNH Walmart footprint to date. The Company intends to offer additional services in this state-of-the-art facility, including physiotherapy and chiropractic services, MedSpa, cardiac care and prevention, orthopedic and sports medicine, corporate and executive health services, and more.

Subsequent Events (After the quarter ended April 30, 2021)

• On May 3, 2021, Writi Inc., which was acquired in January 2021, secured the software installation for 15 new Long-Term Care (“LTC”) homes, representing over 1,650 new beds. This integration, once completed, will double the number of LTCs using the Writi platform and should increase the recurring revenue install base to a total of 30 LTCs and over 3,200 beds in Ontario. Writi is a cloud-based medication-management software platform that supports the secure digital communication, record maintenance and workflow of resident-related orders and documentation, as well as virtual check-ups, virtual billing, prescription fulfilment, and integration with various EMRs. It has a stable and growing recurring revenue base and the Company intends to invest in this technology to bring hospital-quality care to LTC homes.
• On May 6, 2021, the Company announced that it had secured an additional 153 new locations in Mexico, bringing the total number of future clinics in the country to 203, all of which will be corporately owned and operated. JNH has been expanding its presence in Mexico, with 52 clinics currently operational and 151 more clinics scheduled to open in the coming months.
• On May 12, 2021, the Company announced three new locations will be opening in Western Canada (two in Alberta and one in British Columbia) by the end of 2021 and early 2022. These new clinics will have larger format footprints of approximately 5,000 sq. ft. and JNH will provide a range of accessible, high quality healthcare that includes both in-clinic and telemedicine services.
• On May 21, 2021, the Company announced that its Board of Directors terminated the employment of Mr. George Barakat as Chief Executive Officer (“CEO”) and named Mike Marchelletta Interim CEO. As disclosed, a search process is underway to find a CEO on a permanent basis. Additionally, Neil J. Labatte was appointed Chairman of the Board. Further, on June 24, 2021, Michael A. Pangia was brought onboard as a Strategic Advisor to support the leadership team.
• On June 1, 2021, the Company acquired a medical clinic in Campbell River, British Columbia, making it the sixth corporate-owned clinic. JNH intends to add new service offerings at this location including physiotherapy and chiropractic services, and MedSpa.

FINANCIAL HIGHLIGHTS FOR THE THREE MONTHS ENDED APRIL 30, 2021

Operating Results

• Total revenues in Q1 fiscal 2022 were approximately $1.3 million, an increase of approximately $0.3 million or 26% as compared to the period ended April 30, 2020. The year-over-year improvement was primarily driven by an increase in clinic operations from the recent acquisitions of medical clinics in Canada, and the expansion of corporate owned and operated clinics in Mexico. While total revenues were up in the comparable Q1 periods, the full contribution was not realized, as acquisitions were completed during the quarter. The Company expects higher revenues in future periods as it ramps up services, increases its footprint, and opens locations that have been closed due to the global pandemic.
• Total operating expenses in Q1 fiscal 2022 were $2.8 million as compared to $0.8 million in the period ended April 30, 2020, an increase of approximately $2.1 million. The year-over-year increase was primarily related to acquisition-related expenses as the Company expanded its footprint and presence in Canada and Mexico. Additionally, the Company incurred higher expenses associated with staffing newly acquired clinics in Canada and in support of new clinic openings in Mexico, higher development costs in support of new technology initiatives designed to enhance operational efficiencies, clinic operations and patient engagement, and higher salaries and wages as key management positions were filled in anticipation of future growth. Approximately $0.7 million of the year-over-year increase was related to stock compensation expenses.
• The Company reported a loss from operations of approximately $1.6 million in Q1 fiscal 2022 as compared to income from operations of $0.2 million in the period ended April 30, 2020. The loss from operations was directly related to higher operating expenses.
• Adjusted EBITDA⁽¹⁾ in Q1 fiscal 2022 was a loss of $0.5 million as compared to adjusted EBITDA of $0.3 million in the period ended April 30, 2020. The adjusted EBITDA loss was directly attributable to higher expenses incurred during Q1 fiscal 2022, some of which are not expected to repeat in future periods.

Balance Sheet as of April 30, 2021

• Cash of $6.3 million (January 31, 2021 - $7.7 million)
• Total assets of $11.2 million (January 31, 2021 - $10.7 million)
• Total liabilities of $2.9 million (January 31, 2021 - $2.1 million)

Shares Outstanding

As of April 30, 2021, the Company had 81,537,736 common shares outstanding, 6,225,000 stock options outstanding, and 451,235 warrants outstanding.

⁽¹⁾ Adjusted EBITDA

We believe Adjusted EBITDA is a useful measure to assess the ongoing performance of our Company as it provides more meaningful operating results by excluding the effects of expenses that are not reflective of our underlying business performance as well as one-time or non-recurring expenses. We define Adjusted EBITDA as EBITDA adjusted to add back or deduct, as applicable, certain expenses, costs, charges, or benefits incurred in the period, which in management’s view, are not indicative of normal operations, including: (i) non-capitalized development costs, (ii) acquisition related costs, (iii) stock compensation expense, (iv) other income (expense), (v) finance costs, (vi) loss on investments at fair value, and (vii) FX.

Non-GAAP measure: Earnings before interest, taxes, depreciation, and amortization (“EBITDA”) and Adjusted EBITDA should not be construed as alternatives to net income (loss) determined in accordance with IFRS. EBITDA and Adjusted EBITDA do not have any standardized meaning under IFRS and therefore may not be comparable to similar measures presented by other issuers. Adjusted EBITDA is a meaningful financial metric as it measures cash generated from operations which the Company can use to fund working capital requirements, service future interest and principal debt repayments and fund future growth initiatives.

For further information regarding the Company’s financial results Q1 fiscal 2022, please refer to the Company’s audited financial statements for the year ended January 31, 2021 and unaudited condensed financial statements for the 3 month period ended April 30, 2021 together with corresponding MD&As, available on Jack Nathan Health’s issuer profile on SEDAR at www.sedar.com and the Company’s website https://www.jacknathanhealth.com

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 has 52 owned and operated clinics in Walmart locations and is contracted to open 151 more new clinics in 2021/22. 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.

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