Mednow Achieves Record Q2 2022 Financial Results with 230% Q/Q Revenue Growth and 1,400% Y/Y Revenue Growth

• Q2/22 revenue increased over 230% quarter-over-quarter, and more than 1,400% year-over-year;
• Mednow is well capitalized, with a cash balance of C$16.4M;
• Mednow patient count significantly increased quarter over quarter, growing by approximately 20% to ~19,000 in Q2 versus ~16,000 in the first quarter
• In the 2022 calendar year, revenue is forecasted to range between C$42.5M and C$47.5M; approximately C$42M will come from its pharmacy services, while approximately C$3M will come from doctor services;
• 2022 gross margin is expected to average approximately 20%, with 40K – 45K active patients, and a net loss for the year;
• Revenue for the 2023 calendar year is forecasted to range between C$105M and C$110M, with C$102M from pharmacy services while C$5M is expected to come from doctor services;
• 2023 gross margin is expected to average 25%, with 110K – 120K active patients;
• In the 2023 calendar year, Mednow is expected to produce approximately $5M to $10M in Adjusted EBITDA;
• Revenue is expected to grow 2,400% in 2022 relative to 2021 and 140% in 2023 compared to 2022;

TORONTO, March 23, 2022–(BUSINESS WIRE)–Mednow Inc. (“Mednow” or the “Company“) (TSXV:MNOW), Canada’s on-demand virtual pharmacy, is pleased to announce it has released its financial results for the period ending January 31^st, 2022 (“Q2 2022“). Mednow’s Financial Statements and Management, Discussion & Analysis are available on sedar.com and on the Company’s website, https://investors.mednow.ca.

“I am so fortunate to work with a gifted team of Mednow employees who have tirelessly committed their time and skills to building out Mednow’s vision of leading the digital health evolution, to redefine pharmacy’s role in holistic care.” said Karim Nassar, Mednow’s Chief Executive Officer and Co-Founder. Nassar continued, “Over the last quarter, we have continued to accelerate revenue, while enhancing our technology applications, growing our tuck-in acquisitions, and increasing our uniquely differentiated product offerings. We are thrilled to be able to service customers coast-to-cost by summer 2022, and we will now embark on a significant national marketing campaign.”

Key M&A, Partnerships and Milestones During and Subsequent to Q2 2022:

Key Financials

• Revenue increased by 230% quarter-over-quarter, to $1,890,429 during the three months period ended January 31, 2022, driven primarily by sales from the Company’s retail pharmacy operating segment.
  • Retail pharmacies based in British Columbia, Ontario and Nova Scotia collectively generated revenue of $1,405,559, as compared to $0 in the prior year comparative period.
  • Revenue generated by doctor services was $422,770, as compared to $0 in the prior year comparative period.
  • Revenue was $62,100 from its pharmacy agreement with Mednow East Inc., as compared to $124,200 of revenue in the prior year comparative period, which was generated from its pharmacy agreement with Mednow East Inc. and an equal amount with Mednow West.
• Gross margin for the quarter increased 185% year-over-year to $354,297, as compared $124,200 in the prior year comparative period.
• EBITDA for the quarter was a loss of $5,438,633, as compared to a loss of $1,155,395 in the prior year comparative period, representing a decrease in EBITDA of $4,283,238 compared to the prior comparative period.
  • The change is primarily driven by increased corporate costs, such as increased headcount, technology development, creative marketing, and the implementation of building out the process to decrease acquisition costs as the Company has continued to build out its internal teams in order to scale and grow its businesses.
• Adjusted EBITDA for the quarter was a loss of $4,162,058, as compared to a loss of $803,418 in the prior year comparative period, representing a decrease in adjusted EBITDA of $3,358,640.
  • Adjusted EBITDA has been adjusted for certain items.

Key Metrics

• On February 24, 2022, Mednow provided annual forecasted growth figures for the calendar years 2022 and 2023.
  • For the calendar year 2022, revenue is forecasted to range between C$42.5M to C$47.5M. Contributions of approximately C$42M will come from its pharmacy services, while C$3M will come from doctor services. The gross margin is expected to average approximately 20%, with 40,000 – 45,000 active patients, and a net loss for the year.
  • For the calendar year 2023, Mednow is expected to produce adjusted EBITDA of approximately $5M – $10M. Revenue for 2023 is forecasted to range between C$105M to C$110M, with C$102M contributed by pharmacy services and C$5M coming from doctor services. The gross margin is expected to average 25%, with 110K – 120K active patients.
• Mednow patient count increased significantly quarter over quarter, growing by approximately 20% to ~19,000 in Q2 versus ~16,000 in the first quarter.

Key Acquisitions

• On March 4, 2022, Mednow entered into a share purchase agreement with Mednow East Inc. and the shareholders of Mednow East.
  • Pursuant to the share purchase agreement, Mednow acquired all the issued and outstanding shares of Mednow East, in consideration for an aggregate cash payment of approximately C$65,578,
  • Mednow agreed to convert approximately C$1,374,422 of debt owed by Mednow East to Mednow.
• On February 23, 2022, Mednow completed the acquisitions of London Pharmacare Inc. and Liver Care Canada Inc.
  • Mednow amended the agreement and acquired all of the issued and outstanding shares of London Pharmacare Inc. for an initial cash payment of C$1,000,000 and two subsequent cash payments each in the amount of C$367,500 on the first and second anniversary of the closing date of the acquisition.
  • Mednow acquired all of the issued and outstanding shares of Liver Care Canada for an initial cash payment in the amount of C$65,000 and two subsequent earn-out payments in the amount of 0.1x of the revenue generated by Liver Care Canada in each of its 2022 and 2023 financial years.
  • In the last fiscal year, Liver Care and London Pharmacare collectively generated an aggregate of approximately C$21.3M in revenue and C$2.1M in gross profits from selling prescription medications and diagnostic services to its patients.
• On December 10, 2021, Mednow closed the acquisition of InfusiCare Canada for a cash payment of C$1.85M. In its latest fiscal year, Infusicare generated C$9.3M in revenue and C$400,000 in gross profit from selling prescription medications and support services to its patients.

Key Investments

• On November 24, 2021, Mednow closed a C$500,000 investment in Doko Medical Inc. (“Doko Medical”) by way of convertible debenture. If the convertible debenture is converted to equity, this would equate to a 2.8% equity interest at a C$17.5M pre-money valuation. Doko Medical is a virtual and telemedicine healthcare provider operating across the U.S. currently servicing 38 states; it has over 100 physicians and health care workers engaged over its platform.
• On November 12, 2021, Mednow acquired the License and Exclusive Distribution Rights of TruDiagnostic™ for a two-year term and a cash payment of US$150,000 to expand the Company’s holistic healthcare offerings on its digital platform. Mednow’s customers are expected to be able to order this epigenetic test in the second calendar quarter of 2022.

Operational Milestones

• At the end of January, Mednow received approval from the Ontario College of Pharmacists for its new flagship fulfillment center in Toronto. The site boasts 20,000 square feet of space, with room for further expansion and growth.
  • This location houses a secured floor for the pharmacy, the Mednow online shop, the customer support centre, and the automation and technology to support and optimize Mednow’s PillSmartTM and nutraceutical offerings.
  • Separately, this location houses the Toronto corporate office and the logistics command center for the entire Company.
• Mednow expects to have the capability to deliver across Canada when it anticipates launching its (i) Winnipeg, Manitoba, (ii) Montreal, Quebec, and (iii) Calgary, Alberta fulfillment centres this summer.

Mednow For Business (MFB)

MFB has demonstrated strong traction already, with access to over 500,000 lives. MFB is an enterprise pharmacy solution suited to employers to better manage their drug benefit expenditure, which normally represents up to 80% of the total benefits expenditure made by employers. In addition, MFB also offers wellness and digital health programs to their employees, that includes a broad spectrum of solutions including digital pharmacy, nutritional services, personalized vitamins and supplements programs, and a wellness store which includes a broad array of health-related products.

To date, MFB has formed strategic channel partner relationships with PACE Consulting Benefits and Pensions Ltd., PACE Consulting MGA Services Inc. and Sterling Capital Brokers. MFB has launched and onboarded over 30 employers, which equates to approximately 3,500 corporate users on the Mednow pharmacy platform, including, but not limited to Tucows, Consensus Cloud Solutions, and Arista Networks. Furthermore, MFB has a healthy pipeline of groups which is expected to be launched in the coming months and is working with multiple net new partners.

Mednow Launches Total Health by Mednow

In early March 2022, Mednow launched Total Health by Mednow which strives to provide consumers focused on preventive health, with science and evidence-based personalized supplement plans. With the launch of Total Health, Mednow aims to counter consumer confusion about supplements and help Canadians achieve their health goals.

Total Health was designed to help people interested in taking supplements for preventative purposes or as a support for pharmacological treatments, while also endeavoring to prevent harmful interactions with medications. Mednow believes this offering strongly compliments our mission of redefining the digital pharmacy’s role in holistic care. Total Health has already garnered a lot of media attention, given the value of its services to the Canadian consumers.

Rebranding

Mednow revealed its new brand identity which includes a new logo, design system, and redesigned website on January 24th, 2022. The logo comprises four overlapping capsules, representing Mednow’s core pharmacy business. The M is fashioned after a heartbeat to evoke Mednow’s “people not pills” approach. Altogether, the “Heartbeat” design system is emblematic of Mednow’s mission to lead the digital health evolution using its people-first approach with helpful technology, redefining pharmacy’s role in holistic care.

Marketing and Customer Service

To date, Mednow has achieved a perfect 5.0 rating on Google. Although in the early start of scaling, this reinforces to Mednow that its product offering and customer service so far resonates with Canadians, and that there is product market fit. With that established, Mednow is about to embark on an integrated awareness and conversion-focused national marketing campaign. This first for the company will include TV, out-of-home (billboards), digital and social media. Additionally, in early March 2022, Mednow launched an enhanced version of its web application that improves user experience, supports scalability and security which is also available from the Apple and Android app stores.

First and Second quarter calendar year 2022 Investor

• In January 2022, Mednow participated in a broker-led virtual non-deal roadshows where Mednow met with many prospective and current investors.
• On March 3, 2022 Mednow attended Gravitas Securities’ 5th Annual Growth Conference in Vancouver Canada. Karim Nassar, Mednow’s CEO, spoke on a panel and presented a corporate update and met virtually and in-person with prospective and current investors.
• On March 25-27, 2022, Mednow will be attending the CEM AlphaNorth Conference where the Company will meet with over fifty investors over the course of the conference.
• On April 4-7, 2022, Mednow will be participating at the Lytham Partners Spring 2022 Investor Conference.
• On April 5, 2022, Mednow will be presenting and participating in DC Finance’s Montreal Family Office & High Net Worth Individuals Conference.
• On May 3-5, 2022, Mednow will be presenting and participating at SNN Network’s Planet MicroCap Showcase.
• Mednow will continue to meet with investors both virtually and in-person through conferences, non-deal roadshows, events, panel discussions, and corporate updates to ensure all potential and current shareholders are well aware of the Mednow story, what we have achieved, and to become the first publicly listed national digital pharmacy in Canada.

2022 Awards

• On January 26th, 2022, Mednow was awarded the 2022 Best WorkplaceTM – Start-ups. In a year where many employers experienced high levels of employee turnover, dubbed by some as “The Great Resignation” Mednow was able to grow its employee base by more than three times to approximately 60 employees since its initial public offering in March 2021.
• On March 8, 2022, International Women’s Day, Mednow was named on the Great Place to Work® 2022 Best Workplaces for Women list. The list was created following a thorough and independent analysis conducted by Great Place to Work®. This includes direct feedback from employees of hundreds of various organizations surveyed by Great Place to Work®.

Summary of Financial Results

Below is a summary of each operating segment’s performance for the three month period ended January 31, 2022 and 2021.

		Three months ended January 31,
		2022			2021
		Retail Pharmacies			Doctor Services			Mednow Inc.			Total			Mednow Inc.
Revenue		$	1,405,559			$	422,770			$	62,100			$	1,890,429			$	124,200
Other amounts in loss			1,810,248				534,558				5,258,986				7,603,792				1,314,624
Net loss		$	(404,689	)		$	(111,788	)		$	(5,196,886	)		$	(5,713,363	)		$	(1,190,424	)
Source: Mednow’s MD&A as of January 31, 2022

Normal Course Issuer Bid Update

As at January 31, 2022, the Company purchased and canceled a life to date total of 309,100 common shares for $865,955 of cash consideration. The life to date weighted average cost of the canceled shares totaled $455,233 resulting in a loss on cancellation of $410,822 allocated to the deficit. During the period ended January 31, 2022, the Company did not purchase and cancel common shares.

Stock Option Plan Grants

As previously announced on June 7, 2021, the Company approved amending its current stock option plan to replace the previous rolling stock option plan (the “Old Plan”) with a 20% fixed stock option plan (the “New Plan”). Under the New Plan, the Company may issue up to an aggregate total of 4,372,132 stock options to purchase common shares in the capital of the Company (each and “Option”).

The Company announces the grant of a total of 892,500 Options to certain officers, directors and consultants of the Company pursuant to the New Plan. Subject to the policies of the TSX Venture Exchange (the “TSXV”) and the terms and conditions of the New Plan, the Options will have an exercise price equal to $0.74 and shall expire five years from the date of grant and shall vest over four years.

Mednow is at the final stretch of accomplishing its mission of “providing all people of Canada with access to amazing care to help them live their healthiest lives”. Our national digital pharmacy will focus on holistic care, as its path to disrupting the C$50B pharmacy market. Mednow aims to be the Company who will lead the industry in patient-centric health solutions.

FORWARD-LOOKING INFORMATION

This Press Release includes certain statements and information that may constitute forward-looking information within the meaning of applicable Canadian securities laws. All statements in this Press Release, other than statements of historical facts, including statements regarding future estimates, plans, objectives, timing, assumptions or expectations of future performance, including without limitation, the Company’s expectation that during the next 12 months, the Company will build and open retail pharmacies in the provinces of Manitoba, Alberta and Quebec, the Company’s ability to secure institutional contracts and other business development initiatives, the ability to scale and grow the Company’s businesses, the Company’s expectation that it will successfully acquire a pharmacy based in Toronto, from related parties of Mednow, the Company’s ability to pursue and complete future acquisitions and investments, the Company’s forecast that in calendar 2022 the Company’s revenue will range between C$42.5 million and C$47.5 million, the Company’s forecast that the Company’s calendar 2022 gross margin will average approximately 20%, with 40,000 to 45,000 active patients and be a net loss for the calendar 2022 year, the Company’s forecast that revenue for the 2023 calendar year will range between C$105 million and C$110 million, the Company’s forecast that the Company’s calendar 2023 annual gross margin will average approximately 25%, with 110,000 to 120,000 active patients, and the Company’s forecast to have Adjusted EBITDA in the range of $5 million to $10 million, are forward-looking statement and contains forward-looking information. Generally, forward-looking statements and information can be identified by the use of forward-looking terminology such as “intends” or “anticipates”, “forecasts” or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “should”, “would” or “occur”.

Forward-looking statements are based on certain material assumptions and analysis made by the Company and the opinions and estimates of management as of the date of this press release, including that during the next 12 months, the Company will build and open retail pharmacies in the provinces of Manitoba, Alberta and Quebec, the Company will successfully acquire a pharmacy based in Toronto, the Company will have national delivery capabilities in summer 2022, the Company will be successful in the deployment of its resources and personnel, the Company’s operations will not be adversely impacted by COVID-19, the availability of financing, the cost of planned expansion, third party contractors and supplies and governmental and other approvals required to conduct the Company’s planned activities will be available on reasonable terms and in a timely manner and that general business and economic conditions will not change in a material adverse manner, the Company will be successful in its targeted marketing campaigns and advertising initiatives that will allow the Company to grow its active patients to 40,000 to 45,000 active users in calendar 2022 and 110,000 to 120,000 active patients in calendar 2023, the Company will be successful in growing its active users to its estimated target range (as defined above) in calendar 2022 and calendar 2023, which will allow the Company to generate between C$42.5 million and C$47.5 million of revenue, average gross margin of 20% and a net loss in calendar 2022, and between C$105 million and C$110 million of revenue, average gross margin of 25% and Adjusted EBITDA in the range of $5 million to $10 million in its calendar 2023 year, the Company will be able to continue to buy medications and other products at reasonable prices and underlying purchase terms to achieve its expected gross margin in calendar 2022 and calendar 2023, the Company will be able to control operating costs to be able to achieve its target and forecasted earnings and Adjusted EBITDA, the Company’s web and mobile application will be able to support a higher number of patients and users who will use the application to transact with the Company, and the Company will be successful in its strategic objectives, including the integration of existing business acquisitions and the pursuit of other investments and acquisitions.

Factors that could cause actual results to vary materially from results anticipated by such forward looking statements include changes in market conditions, fluctuations in the currency markets, changes in national and local governments, legislation, taxation, controls, regulations, and political or economic developments in Canada or other countries in which the Company may carry on business in the future; risks relating to the credit worthiness or financial condition of suppliers and other parties with whom the Company does business; inadequate insurance or inability to obtain insurance to cover these risks; availability and increasing costs associated with operational inputs and labor; business opportunities that may be presented to, or pursued by the Company; the Company’s ability to successfully integrate acquisitions; the ongoing economic impacts of the COVID19 pandemic; and the risk factors discussed or referred to in this Press Release. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. Investors are cautioned against attributing undue certainty to forward-looking statements. Other than specifically required by applicable laws, we are under no obligation, and we expressly disclaim any such obligation to update or alter the forward-looking statements whether as a result of new information, future events or otherwise except as may be required by law. These forward-looking statements are made as of the date of this Press Release.

CORPORATE UPDATE OF FINANCIAL PERFORMANCE

The Company provided a corporate update on February 24, 2022, on its calendar 2022 and 2023 financial objectives. Pursuant to the update, the Company forecasts to generate annual revenue between the range of C$42.5M to C$47.5M for the calendar 2022 year, which comprises the months from January to December 2022. The Company projects C$42M of revenue from the retail pharmacy business segment, and C$3M from the doctor services operating segment. The Company forecasts to have 40,000 to 45,000 active patients by the end of the 2022 calendar year. The Company forecasts to have gross margin of approximately 20% and a net loss for the year.

For the 2023 calendar year, comprising the months from January to December 2023, the Company forecasts annual revenue between the range of C$105M to C$110M, with C$102M of revenue from the retail pharmacy operating segment, and C$5M from the doctor services operating segment. The Company forecasts to have 110,000 to 120,000 active patients by the end of the 2023 calendar year. The Company forecasts to have gross margin of approximately 25% and Adjusted EBITDA in the range of C$5M to C$10M.

The Company plans to open retail pharmacies in Manitoba and Quebec in March 2022, and in Alberta later this year.

The Company’s results as at January 31, 2022, are summarized below. The Company had 19,000 active patients at the end of January 2022.

	For the month ended
	January 31, 2022 (Unaudited)
Revenue	$	957,496
Cost of Sales		809,726
Gross margin %		15	%
Other costs		1,931,791
Net Loss		(1,784,021	)
EBITDA1		(1,666,657	)
Adjusted EBITDA1		(1,234,770	)
1 EBITDA and Adjusted EBITDA has been discussed in the section Definitions of Non-IFRS Financial Measures.

As of the date of this report, March 22, 2022, management has assessed that the Company is on track to meet the 2022 calendar year objectives and financial forecast above, and the Company confirms that there are no material differences in the underlying assumptions and factors that were used to develop the Company’s forecast.

RECONCILIATIONS OF NON-IFRS MEASURES
	For the month ended
	January 31, 2022 (Unaudited)
Net loss and comprehensive loss for the period	$	(1,784,021	)
Interest expense		8,106
Depreciation and amortization		109,258
EBITDA1		(1,666,657	)
Loss on investment in equity securities		16,063
Share-based compensation		366,361
Acquisition costs		49,463
Adjusted EBITDA1		(1,234,770	)
1 EBITDA and Adjusted EBITDA has been discussed in the section Definitions of Non-IFRS Financial Measures.

DEFINITIONS OF CERTAIN NON-IFRS FINANCIAL MEASURES

This Press Release uses certain non-IFRS financial measures which are defined below. Non-IFRS financial measures are not standardized financial measures under IFRS. As such, these measures may not be comparable to similar financial measures that are disclosed by other companies. These measures include “EBITDA” and “Adjusted EBITDA”. These measures are provided as additional information that is disclosed to provide further insight into the Company’s results of operations from management’s perspective. These measures should not be reviewed and assessed as a substitute for financial information reported under IFRS. A reconciliation of the non-IFRS measures to the IFRS measure is in the section “Selected Financial Information”.

EBITDA and Adjusted EBITDA

EBITDA represents net loss and comprehensive loss for the period before interest expense, income taxes, and depreciation and amortization expenses. Adjusted EBITDA represents net loss and comprehensive loss for the period before interest expense, income taxes, depreciation and amortization expenses, loss on investment in equity securities, share-based compensation expense, and acquisition costs incurred. These adjustments to calculate the non-IFRS measures of EBITDA and Adjusted EBITDA are for items that are not necessarily reflective of the Company’s underlying operating performance. As there is no generally accepted or standard method of calculating EBITDA, these measures are not necessarily comparable to similarly titled measures reported by other issuers. EBITDA and Adjusted EBITDA are presented as management believes it is a useful indicator of the Company’s relative financial performance. These measures should not be considered by an investor as an alternative to net income or other IFRS financial measures as determined in accordance with IFRS.

The Company presents EBITDA and Adjusted EBITDA to indicate ongoing financial performance from period to period, including comparative prior year periods. The Company has disclosed certain non-IFRS measures on this report, including the disclosure of non-IFRS financial measures for prior year comparative periods.

Reconciliation of Non-IFRS Financial Measures

The following are reconciliations of net loss and comprehensive loss to EBITDA. The adjustments include:

1. The amortization and depreciation expenses of intangible assets, fixed assets, and the right-of-use assets of the Company.
2. The interest expenses, which primarily includes interest expense on the Company’s credit facility and interest expense recorded in accordance with IFRS 16.

The following are reconciliations of EBITDA to Adjusted EBITDA. The adjustments include:

1. The loss on investment in equity securities in connection with the Company’s investment in Life Support.
2. The share-based compensation expense recorded by the Company in connection with the stock option plan.
3. The acquisition costs incurred by the Company for its completed and pending acquisitions.

The exclusion of certain items in calculating the non-IFRS measures does not imply that they are non-recurring, infrequent, unusual or not useful to investors.

About Mednow Inc.

Mednow is a healthcare technology company offering virtual access with a high standard of care. Designed with accessibility and quality of care in mind, Mednow.ca provides virtual pharmacy and telemedicine services as well as doctor home visits through an interdisciplinary approach to healthcare that is focused on the patient experience. Mednow’s services include free at-home delivery of medications, a user-friendly interface for easy upload, transfer, and refill of prescriptions, access to healthcare professionals through an intuitive chat experience, a specialized PillSmart™ system that packages prescriptions and vitamins by date and time, and doctor consultations.

To learn more, follow Mednow on Facebook, Twitter, LinkedIn, and Instagram, or visit our website at www.mednow.ca/.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Cautionary Note Regarding Forward-Looking Information

This release includes certain statements and information that may constitute forward-looking information within the meaning of applicable Canadian securities laws. All statements in this news release, other than statements of historical facts, including statements regarding future estimates, plans, objectives, timing, assumptions or expectations of future performance, including without limitation, the Company’s expectation that its marketing campaign will include TV commercials, social media marketing campaigns directed at consumers along with billboard campaigns, the Company’s expectation that during the next 12 months, the Company will build and open retail pharmacies in the provinces of Manitoba, Alberta and Quebec, the Company’s expectation that it will successfully acquire a pharmacy based in Toronto, from related parties of Mednow, the Company’s expectation that it will have national delivery capabilities in summer 2022, the Company’s expectation that in 2022 the Company’s revenue will range between C$42.5M and C$47.5M, the Company’s expectation that the Company’s 2022 gross margin will average approximately 20%, with 40,000 to 45,000 active users, and be a net loss for the year, the Company’s expectation that revenue for the 2023 calendar year will range between C$105M and C$110M, the Company’s expectation that the Company’s 2023 gross margin will average approximately 25%, with 110,000 to 120,000 active users and the Company’s expectation that revenue will grow 2,400% in 2022 relative to 2021 and 140% in 2023 from 2022 are forward-looking statement and contains forward-looking information. Generally, forward-looking statements and information can be identified by the use of forward-looking terminology such as “intends” or “anticipates”, or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “should”, “would” or “occur”. Forward-looking statements are based on certain material assumptions and analysis made by the Company and the opinions and estimates of management as of the date of this press release, including that the Company’s marketing campaign will include TV commercials, social media marketing campaigns directed at consumers along with billboard campaigns, that during the next 12 months, the Company will build and open retail pharmacies in the provinces of Manitoba, Alberta and Quebec, the Company will successfully acquire a pharmacy based in Toronto, from related parties of Mednow, the Company will have national delivery capabilities in summer 2022. These forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements or forward-looking information. Important factors that may cause actual results to vary, include, without limitation, the Company’s marketing campaign will not include TV commercials, social media marketing campaigns directed at consumers along with billboard campaigns, that during the next 12 months, the Company will not build and open retail pharmacies in the provinces of Manitoba, Alberta and Quebec or at all, the Company will not successfully acquire a pharmacy based in Toronto, from related parties of Mednow, the Company will not have national delivery capabilities in summer 2022 or at all, the Company’s 2022 revenue will not be in the range between C$42.5M and C$47.5M and may be significantly lower, the Company’s 2022 gross margin will not average approximately 20% and the Company will not successfully grow its user base to 40,000 to 45,000 active users, the Company’s revenue for the 2023 calendar year will not range between C$105M and C$110M and may be significantly lower, the Company’s 2023 gross margin will not average approximately 25% and the Company will not successfully grow its user base with 110,000 to 120,000 active users and the Company’s revenue will not grow 2,400% in 2022 relative to 2021 and 140% in 2023 from 2022 as expected by management or at all. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking information. Readers are cautioned that reliance on such information may not be appropriate for other purposes. The Company does not undertake to update any forward-looking statement, forward-looking information or financial out-look that are incorporated by reference herein, except in accordance with applicable securities laws.

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Contacts

Investor Relations:
Benjamin Ferdinand, Chief Financial Officer
Lucy Chitilian, CFA, Head of Investor Relations
[email protected]
1.855.686.6300