TORONTO--(BUSINESS WIRE)--Jack Nathan Medical Corp. (TSXV: “JNH”; OTCQB: “JNHMF”) (the “Company”) reports that it has entered into today an agreement with its secured lender Wal-Mart Canada Corp. (the “Lender”) to provide an additional Cdn$474,000 in debt funding (the “Loan”), which provides additional financing for the Company’s operations for the month of August 2024 while the Company concurrently: (a) pursues alternatives to raise additional financing and explore certain strategic alternatives; and (b) develops a transition plan (the “Transition Plan”) for the orderly transition and/or winding down of the business and assets of the Company in the best interests of all of the Company’s stakeholders in the event the necessary additional financing is not secured in the near term.
The Loan is being advanced by way of an increase in the maximum amount available under the existing secured credit facility with the Lender entered into on September 27, 2022 (the “Existing Facility”) (reference is made to the Company’s September 27, 2022 press release filed on SEDAR+), such that the terms of the Loan are the same as the Existing Facility, including the interest rate of 7% per annum.
The Company continues to assess various strategic initiatives to optimize operations and consider M&A and/or financing opportunities to strengthen the Company’s financial position. No assurances can be provided that these efforts will be successful. In the absence of being able to secure additional financing in the near term, the Company expects the Transition Plan to be implemented.
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 Going Concern
As previously reported by the Company in its consolidated financial statements and related management’s discussion and analysis filed on SEDAR+ (www.sedarplus.ca), the Company requires additional financing to enable it to continue operations. In the absence of additional financing in the near term, the Company is not expected to have sufficient funds to meet its obligations. As noted in this press release, the Company is actively pursuing alternatives to raise the necessary additional financing. There can be no assurances that the Company will be able to secure the necessary financing to enable it to continue as a going concern.
