CEO.CA Chairman's Briefing

Jack Nathan Medical Corp. (TSXV: JNH, OTCQB: JNHMF) (“Jack Nathan Health”, “JNH” or the “Company”) announced today its unaudited interim consolidated financial results for the second quarter of fiscal 2025, three and six months ended July 30, 2024. Jack Nathan Health’s financial statements are prepared in accordance with International Financial Reporting Standards (“IFRS”).

Management Commentary

Dr. Glenn Copeland, Chairman and Chief Executive Officer, commented: “In Q2 fiscal 2025, we saw the positive impact of our efforts to mature our clinic operations. The 21% revenue growth highlights the effectiveness of our strategy to optimize existing locations and improve operational efficiency across our network.”

Marcy Herriman, Chief Operating Officer, added: “Our focus this quarter was on bringing our clinics to full capacity and enhancing service delivery. The steady revenue growth reflects our commitment to operational excellence.”

Financial Highlights for the three and six months ended July 31, 2024

Operating Results

Revenues for the six months ended July 31, 2024, were $10,670,548 (2023 - $8,795,598), representing an increase of $1,874,950 or 21%. The growth was driven by increased clinic operations, reflecting the Company’s focus on maturing its existing clinics. The Company expects license revenues to be a smaller percentage of total revenues as clinic operations continue to grow.

Clinic operations revenues of $4,822,278 accounted for 89% of total revenues for the three months ended July 31, 2024, compared to $3,909,899 or 86% of revenues for the three months ended July 31, 2023. For the six months ended July 31, 2024, clinic operations revenues of $9,585,640 accounted for 90% of total revenues compared to $7,406,876 or 84% of revenues for the six months ended July 31, 2023. As of July 31, 2024, in Canada, the Company has 82 clinics in British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, and Quebec. In Mexico, the Company has 155 corporate owned and operated clinics in Walmart locations across Mexico, 5 Clinics inside Walmart Distribution Centers servicing Walmart Associates, and 1 Multidisciplinary clinic. The Company’s revenue mix now reflects its change in direction to a focus on operating medical clinics, though the percentage of clinic operations will continue to grow as additional clinics are opened. The increase in clinic operations is aligned with the Company’s strategic plan of expanding corporate-owned and operated medical centers with strategic partner Walmart.

Loss from operations for the six months ended July 31, 2024, was $3,175,561 (2023 - $2,260,486), reflecting an increase in operating loss of $915,075, primarily due to higher operating expenses related to clinic operations, salaries, and professional fees. The increase correlates with the opening of new clinics in fiscal 2024.

Balance Sheet as of July 31, 2024

• Cash of $768,012 (January 31, 2024 - $3.07 million)
• Total assets of $7.06 million (January 31, 2024 - $11.18 million)
• Total liabilities of $17.22 million (January 31, 2024 - $17.13 million)

On September 13, 2024, the Company signed a non-binding letter of intent (the “LOI”) with an unrelated party for a proposed transaction as part of the Company’s ongoing efforts to explore certain strategic alternatives (see the Company’s September 13, 2024 press release). The proposed transaction is subject to, among other conditions, the completion of satisfactory due diligence by the other party to the LOI and the negotiation and execution of a definitive agreement. The LOI includes a 30-day exclusivity period with the other party and conditional funding to support the Company’s cash flow needs while the parties work towards negotiating and entering into the definitive agreement. The LOI does not create any legally binding obligations to enter into a definitive agreement, and no assurance can be provided that a definitive agreement will be signed. If a definitive agreement is signed, transaction details will be provided by the Company at that time.

Shares Outstanding

As of July 31, 2024, the Company had 87,099,159 common shares outstanding, 5,215,000 stock options outstanding, 8,500,000 RSUs outstanding and 502,506 DSUs outstanding.

The Company also has outstanding a secured convertible debenture in the principal amount of $8,000,000, which is held by Wal-Mart Canada Corp. (“Wal-Mart”). Subject to earlier conversion, the Debenture will mature on July 20, 2026. The principal amount outstanding under the debenture is convertible, at the option of Wal-Mart, into units of the Company at a price of $0.105 per unit. Each such unit shall consist of one common share of the Company and one warrant, with each such warrant entitling the holder to purchase one common share of the Company at an exercise price of $0.105 until the date that is three years following the date of issue of such warrant.

For further information regarding the Company’s financial results for Q2 fiscal 2025, please refer to the unaudited interim consolidated financial statements of the Company for the three and six months ended July 31, 2024 together with the corresponding MD&A, available at www.sedarplus.ca and the JNH 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 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 centers, 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 centers in 243 locations globally, with 183 corporately owned and operated. In Canada, the Company has 80 clinics in Walmart locations in British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, and Quebec and 2 independent locations for a total of 82 clinics. There are currently 22 corporate owned and operated clinics of which 3 include Rehab services and 6 include MedSpa services. In Mexico, the Company has 155 corporate owned and operated clinics in Walmart locations, 5 Clinics inside Walmart Distribution Centers servicing Walmart Associates, and 1 Multidisciplinary clinic. Jack Nathan Health, Mexico recently started operation of its first medical center in Mexico City.

For more information, visit www.jacknathanhealth.com or www.sedarplus.ca.

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.

Cautionary Note Concerning Forward-Looking Information

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; 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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