Thursday, November 25, 2021
Jack Nathan Medical Corp., 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
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.