Mednow Closes Previously Announced Acquisition of Pharmacy in British Columbia
Toronto, ON. October 26, 2021 – Mednow Inc. (“Mednow” or the “Company”) (TSXV:MNOW; OTCQB:MDNWF), Canada’s on-demand virtual pharmacy, is pleased to announce that the Company has completed the acquisition, previously announced on September 22, 2021, of all of the issued and outstanding shares of Mednow Pharmacy Inc. (“Mednow West”), for an aggregate cash payment of approximately $74,000 and the Company’s agreement to convert approximately $908,000 owed by Mednow West to the Company pursuant to a pharmacy agreement dated September 24, 2020, as amended October 30, 2020 (the “Pharmacy Agreement”) into a non-interest bearing on-demand convertible promissory note. Mednow West’s revenue and expenses will be consolidated with those of the Company and the Pharmacy Agreement between the two parties will be terminated.
Mednow West is a British Columbia company that operates an online pharmacy, delivering prescriptions in the Province of British Columbia. Mednow West has its business headquarters in Vancouver and employs Mednow’s marketing and technology platform for lead generation, prescription fulfillment and customer services.
“We are executing on our plan for a national presence across Canada and we are thrilled to be consolidating Mednow West under our platform. As we add service to our digital first healthcare platform, we are also simultaneously working to expand our geographical reach to become a household name in Canadian healthcare,” said Karim Nassar, Chief Executive Officer.
As Amir Ali Reyhany-Bozorg and Felipe Campusano are directors of the Company and Karim Nassar is the Chief Executive Officer of the Company, and each are also shareholders of Mednow West, the transaction contemplated under the Share Purchase Agreement (the “Transaction”) is a related party transaction under Multilateral Instrument 61-101 – Protection of Minority Securityholders in Special Transactions (“MI 61-101“). The Company is exempt from the formal valuation and minority shareholder approval requirements imposed by MI 61-101 pursuant to the exemptions in section 5.5(a) and 5.7(a) of MI 61-101, as neither the fair market value of the Shares, nor the consideration paid therefor, exceeds 25% of the Company’s market capitalization.
About Mednow Inc.
Mednow is a healthcare technology company offering virtual access with exceptional care. Designed with access and quality care in mind, Mednow.ca provides virtual pharmacy and telemedicine services, as well as doctor home visits, with convenience and 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.
Investor Relations Contact:
Benjamin Ferdinand, Chief Financial Officer
Marc Charbin, Investor Relations
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.