Jack Nathan Medical Corp. (TSXV: “JNH”; OTCQB: “JNHMF”) has successfully completed the sale of its Canadian business to WELL Health Technologies Corp. (WELL), as part of a strategic shift in its operations. The deal, valued at Cdn$5,000,000, also resulted in the elimination of over Cdn$15 million in debt owed to Wal-Mart Canada Corp. and the cancellation of certain outstanding financial obligations. The sale was approved by shareholders during a special meeting on November 29, 2024.
Following the transaction, Jack Nathan Health retains control over its profitable Mexican operations, including 155 clinics within Walmart locations, five clinics in Walmart distribution centers, and a multidisciplinary clinic in Mexico City. The company also entered into a profit-sharing agreement with Wal-Mart Canada Corp. involving its Mexican subsidiary, JN Mexico. This agreement grants Wal-Mart a percentage of profits from JN Mexico’s business for the first year post-sale, with payments continuing until Cdn$4 million has been paid to Walmart.
The sale brings several key benefits to Jack Nathan Health, including the elimination of significant debt, cancellation of a convertible debenture and restricted share units, and a cash infusion to support future growth. The company expects to allocate 57% of the proceeds towards settling prior advances from WELL, paying transaction-related costs, and covering severance for affected staff.
Mike Marchelletta, the Executive Vice Chairman of Jack Nathan Health, will take over as CEO following the departure of Dr. Glenn Copeland, who stepped down from his role as CEO and Chairman, and Marcy Herriman, who stepped down as COO. Both Dr. Copeland and Ms. Herriman will continue to offer consulting services to the company post-transition.
WELL Health Technologies, based in Canada, is the largest operator of outpatient medical clinics in the country and has a strong presence in the U.S. The acquisition strengthens WELL’s position in the healthcare sector, with over 180 clinics across Canada.
Jack Nathan Health, a provider of innovative healthcare services through its co-located medical clinics inside Walmart stores, continues to focus on expanding its international footprint, with 161 corporate-owned clinics in Mexico. The company is committed to delivering accessible, high-quality medical care, both in-person and via telemedicine, as part of its global growth strategy.
