Jack Nathan Medical Corp. (TSXV: JNH, OTCQB: JNHMF) (“Jack Nathan Health”, “JNH” or the “Company”) announced today its audited financial results for the fourth quarter and fiscal year-ended January 31, 2021. Jack Nathan Health’s financial statements are prepared in accordance with International Financial Reporting Standards (“IFRS”).

Management Commentary

Commenting on the Company’s fiscal 2021 financial performance and key corporate milestones, Michael Marchelletta, Co-founder and Interim Chief Executive Officer stated, “Despite the challenges of the COVID-19 pandemic, we made significant progress in the fiscal year ended January 31, 2021, as we completed our go-public transaction to list on the TSXV Exchange and began to implement our vision of establishing Jack Nathan Health as a leading healthcare provider in Canada, Mexico and potentially, the rest of the world. We have taken several steps during the last fiscal year to accelerate our growth plans such as enhancing our infrastructure, filling key leadership positions, expanding our geographic footprint, making several strategic and accretive acquisitions, and solidifying key strategic relationships, particularly with Walmart.”

Mr. Marchelletta continued, “Our expansion strategy is now beginning to take shape as we continue to grow our revenue potential and bottom-line performance. Recent acquisitions and the opening of new medical clinics provide us with a forward-looking revenue run rate that is on track to significantly exceed our historical revenues. We are focused on playing a key role in serving the massive backlog in patient care in Canada and Mexico, and therefore, we will continue to scale and invest in our digital and physical footprints in these countries.”

Key Developments during Fiscal 2021

• On October 1, 2020, the Company announced the closing of its qualifying transaction. Concurrent with the qualifying transaction, the Company received gross proceeds of approximately $5.6 million from its previously completed private placement.
• On October 6, 2020, the Company commenced trading on the TSXV Exchange under the ticker “JNH”.
• On October 8, 2020, the Company announced the opening of a new hybrid medical walk-in clinic in Kelowna, British Columbia, inside Walmart. The clinic located in the Walmart Supercentre at 1555 Banks Road in Kelowna was the Company’s 75^th clinic in Canada and 81^st clinic worldwide.
• On October 16, 2020, the Company announced the launch of its telemedicine service portal, expanding access to primary healthcare in Mexico.
• On October 29, 2020, the Company announced the acceleration of the expiry date of its outstanding warrants to November 30, 2020. Approximately 5.6 million warrants were exercised by November 30, 2020, resulting in gross proceeds of approximately $4.2 million. In addition, the Company appointed a new Chief Technology Officer. Serge Cinelli, a digital health expert and former regulator, who will lead the Company’s digital health road map and be responsible for developing, executing, and rolling out the Company’s proprietary technology.
• On November 9, 2020, the Company announced the opening of a new multi-disciplinary clinic, the Company’s 76^th clinic in Canada and 82^nd worldwide, inside Walmart in Thornhill, Ontario.
• On November 19, 2020, the Company announced that it will begin opening 50 new clinics in Mexico. The Company signed an addendum to its ongoing Master Service Agreement (“MSA”) with Walmart Mexico to construct 50 new clinics throughout the country.
• On December 14, 2020, the Company announced that Dr. Glenn Copeland, former founder, chairman & CEO of Cleveland Clinic Canada is joining Jack Nathan Health as Chief Medical Officer to oversee and expand its new strategic initiative in practice management and clinic operations.
• On January 8, 2021, the Company completed the acquisition of all the outstanding shares of Writi Inc., a company that provides cloud-based medication-management software solutions.

Subsequent to the end of Fiscal 2021

• On February 17, 2021, the Company completed the acquisition of Redeem MedSpas, two walk-in medical clinics inside Walmart in Ontario.
• On March 3, 2021, the Company announced that its common shares began trading on the OTCQB Venture Market under the symbol “JNHMF.” The Company’s shares continue to trade on the TSXV Exchange under the symbol “JNH”.
• On March 8, 2021, the Company completed the acquisition of four operational medical clinics, located inside Walmart in Ontario.
• On March 22, 2021, the Company acquired an 8,172 sq. ft. flagship medical clinic located in Vaughan, Ontario. The Company plans to grow this multi-service clinic, the largest in the JNH Walmart footprint, into a premier healthcare services destination in York Region, Ontario.
• On April 22, 2021, the Company announced that its shares received full-service Depository Trust Company (“DTC”) eligibility in the United States. DTC eligibility is expected to simplify the process of trading while enhancing liquidity for the Company’s common shares.
• On May 3, 2021, Writi secured the software installation for 15 new Long-Term Care (“LTC”) homes, representing over 1,650 beds. This integration, when complete, will double the number of LTCs using the Writi platform and increase the Company’s recurring revenue install base to a total of 30 LTCs and over 3,200 beds in Ontario.
• On May 6, 2021, the Company announced that it has signed an addendum to its ongoing MSA to open an additional 153 new locations in Mexico, bringing the Company’s total number of future clinics in the country to 203, all corporately owned and operated.
• On May 12, 2021, the Company announced three new locations will be opening in Western Canada, with two locations opening in Alberta and one in British Columbia. The clinics slated to open will be in St. Albert and Edmonton in Alberta, and Victoria in British Columbia.
• On May 19, 2021, the Company was approved for graduation to Tier 1 Issuer status from Tier 2 Issuer status by the TSXV Exchange. The TSXV classifies issuers into different tiers based on certain standards including historical financial performance, stage of development and financial resources. Tier 1 is the TSXV's premier tier and is reserved for the TSXV's most advanced issuers with the most significant financial resources.

FINANCIAL HIGHLIGHTS FOR THE THREE MONTHS AND YEAR ENDED JANUARY 31, 2021

Operating Results

• Revenue for the year ended January 31, 2021: For the fiscal year ended January 31, 2021, revenues were $3,852,372 as compared to $3,617,388 last fiscal year, an increase of $234,984. The increase in revenue was supported primarily by an increase in annual license fees from a partial year of new locations and an overall increase from revenues in Mexico related to the ongoing expansion.
• Revenue for the 3 months ended January 31, 2021: For the 3 months ended January 31, 2021, revenues were $716,458 as compared to $833,248 in the same period in fiscal 2020, a decrease of $116,790. The decrease in revenue was mainly driven by a decrease in license fees due to the turnover in clinics and a decrease in retention fees as this revenue was accelerated and received in the second quarter of fiscal 2021 (a timing difference) offset by an increase in clinic operations due to the opening of three new clinics in Mexico and increased sales from COVID testing in Mexico. Management expects this decrease, primarily affected by a timing difference in retention fees, will normalize in future quarters.
• Adjusted EBITDA⁽¹⁾ for the year ended January 31, 2021: Adjusted EBITDA for the fiscal year ended January 31, 2021, was $209,627 compared to $263,511 for the same period in fiscal 2020.
• Adjusted EBITDA⁽¹⁾ for the 3 months ended January 31, 2021: Adjusted EBITDA of ($642,269) compared to ($121,596) in the same period in fiscal 2020. The decrease in Adjusted EBITDA consists primarily of an overall cost of new management and infrastructure to position the Company for growth and scale in several areas of the business. Management expects this to normalize as new revenue streams are realized in the coming months.
• Income (Loss) from operations for the year ended January 31, 2021: For the fiscal year ended January 31, 2021, loss from operations was ($1,354,639) compared to an income of $153,068 in fiscal 2020. The loss from operations consists of a significant amount of new expenses in the last two quarters of fiscal 2021 such as stock compensation expenses, consulting fees, bad debt expenses, salaries and wages, and development costs, partially offset by decreases in professional fees, office and general expenses, license fees and increase in annual revenues.
• (Loss) from operations for the 3 months ended January 31, 2021: For the 3 months ended January 31, 2021, the loss from operations was ($1,986,989) compared to ($151,164) in the same period in fiscal 2020. The increase in loss from operations consists mostly of a significant amount of new expenses in the last quarter of fiscal 2021 such as stock compensation expenses, consulting fees, bad debt expenses, salaries and wages, and development costs, acquisition-related costs, and investor communication-related costs, offset marginally by decrease in office and general expenses. The Company incurred these new expenses from becoming a publicly traded entity and expanding its infrastructure and staff for growth and scale in 2022.

Balance Sheet as of January 31, 2021

• Cash of $7.7 million (January 31, 2020 - $0)
• Total assets of $10.6 million (January 31, 2020 - $1.7 million)
• Total liabilities of $2.1 million (January 31, 2020 - $2.8 million)

Shares Outstanding

As of May 28, 2021, the Company had 82,067,119 common shares outstanding, 5,975,000 stock options outstanding, and 400,830 warrants outstanding.

Management believes Adjusted EBITDA is a useful measure to assess the ongoing performance of the 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 on-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) stock compensation expense, (ii) interest income, (iii) other income (expense), (iv) loss on investments at fair value, (v) write down on investments, (vi) F/X adjustments, and (vii) listing expenses.

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 fiscal 2021, please refer to the Company’s audited financial statements for the year ended January 31, 2021 together with the MD&A, 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 3 more new clinics in 2021/22. In Mexico, the Company has 33 clinics in Walmart locations and is contracted to open 170 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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