Jack Nathan Health Announces Convertible Debenture Financing with Wal-Mart

Jack Nathan Medical Corp. (TSXV: JNH, OTCQB: JNHMF) (“Jack Nathan Health”, “JNH” or the “Company”) is pleased to announce the signing of a secured convertible debenture (the “Debenture”) in the principal amount of C$8,000,000 (the “Transaction”) with Wal-Mart Canada Corp. (“Wal-Mart”).

This Transaction further supports JNH’s national expansion strategy, providing an important catalyst for rapid growth. Commenting on the Transaction, Dr. Glenn Copeland, Chief Executive Officer and Chief Medical Officer of the Company, stated: “We are greatly appreciative of the support that Walmart Canada has shown us throughout the many years. This new investment changes the entire complexion and growth strategy of our Company. With Walmart as our committed partner, we are capable of growing more clinics at an accelerated rate. This commitment allows us to gain access to many more Canadians across the country for all of their medical needs including family practice, urgent care and specialty services all under their respective provincial health plans. We are most grateful to the leadership of Walmart for showing their faith and confidence in us.”

Sam Hamam, Senior Director of Licenses for Wal-Mart, said: “We’re excited to be working with Jack Nathan Health to expand medical clinics to more Wal-Mart stores in Canada. Wal-Mart is committed to making healthcare and wellness more accessible in the communities we serve, and helping our customers live better, every day.”

Terms of the Debenture

Advance and Use of Proceeds

The Debenture provides for one advance in the principal amount of C$8,000,000, which advance shall occur on Closing (as defined below). The proceeds from the Debenture are to be used for the operations of Jack Nathan Health that are operated in collaboration with Wal-Mart, including for the opening of up to 25 new clinics and Quebec infrastructure.

Interest and Maturity

The Debenture shall bear interest at the rate of 9% per annum from the date of issuance (the “Closing”), payable quarterly until the earlier of the Maturity Date (as defined below) or the date of full conversion of the Debenture. Subject to earlier conversion, the Debenture will mature on the date that is three (3) years from the date of issuance (the “Maturity Date”).

Conversion

The principal amount outstanding under the Debenture (the “Principal”) shall be convertible, at the option of Wal-Mart, into units of the Company (each, a “Unit”) at a price of C$0.105 per Unit. Such Principal will be so convertible by Wal-Mart in whole or part, at any time and from time to time prior to the Maturity Date. Each Unit shall consist of one (1) common share in the capital of the Company (each, a “Common Share”) and one (1) Common Share purchase warrant of the Company (each, a “Warrant”), with each Warrant entitling the holder to purchase one (1) Common Share at an exercise price of C$0.105 until the date that is three (3) years following the date of issue of such Warrant.