Mednow Inc.

Thank you for standing by. This is the conference operator. Welcome to MedNow's Q1 2022 Financial Results and Corporate Update Conference Call. As a reminder, all participants are in listen-only mode and the conference is being recorded. Should you need assistance during the conference call, you may signal and operate it by pressing star and zero. I would now like to turn the conference over to Lucy Chotilian, Head of Investor Relations at MedNow. Lucy, please go ahead.

Thank you, operator, and welcome everyone to MedNow's first quarter 2021 financial results and near-end update conference call. Thank you for your time in attending, and we appreciate your interest. We will start today's call off with a company overview from our chief executive officer and co-founder, Kareem Nassar, who will then provide commentary on partnership strategies and outlook. Ben Ferdinand, MedNow's chief financial officer, will recap the company's first quarter financial results and our M&A landscape. This morning, MedNow released its audited financial statements and its management discussion and analysis, which is available on CDAR on the investor section of our website at mednow.ca and in our press release issued this morning, December 22nd at 7 a.m. All comments made on today's call should be taken with reference to and are qualified in their entirety by those documents. Please note that this call contains forward-looking statements or information and reflects the company's current expectations, estimates, projections, assumptions, and beliefs about future events and financial trends that they believe may affect the company's financial condition, result of operations, business strategy, and financial needs. By their nature, forward-looking statements involve known and unknown risk, uncertainties and other factors that may cause our actual results, performance or achievements or other future events to be materially different from any future events, performance or achievements expressed or implied by such forward-looking statements. With all that being said, it is now my pleasure to turn the call over to our CEO and co-founder, Kareem Nassar. Kareem, go ahead.

Thank you, Lucy, and thanks everyone for joining us today. It's exciting to see how far we've come over the last nine months since becoming a public company. I'll first start with commentary about what the industry is that we're in. There were a significant number of positive tailwinds for MedNow based on the macroeconomic landscape. The Canadian healthcare industry is a $264 billion Canadian industry. With our digital pharmacies and insulator services, the industry is not only attractive, but ripe for disruptions. In 2020, there was a 64% increase in demand for virtual care and consumer trends for on-demand pharmacy aligned with virtual healthcare and pharmacy solutions. The pandemic fueled the acceleration of the growing trend of accessing pharmacists and prescriptions virtually. According to a new report by Grandview Research Inc., the global e-pharmacy market has an expected compound annual growth rate of approximately 18.5% between 2021 and 2028. We believe MedNow is well positioned to take advantage of this situation. MedNow's vision is to connect all people residing in Canada with amazing care to help them live their healthiest lives. Our mission is to lead the digital health evolution, combining our people-first approach in a growing industry. We believe we're well on our way to make this possible. MedNow has positioned itself to be a leader in the virtual pharmacy space, providing great service to Canadians. Some competitive advantages include Further expansion of MedNow's service area expected in 2022. Management's extensive knowledge and expertise of pharmacy supply chain logistics, economics, operations, and regulatory requirements. And finally, our holistic approach to healthcare, which includes mental health assessments, genetic testing, and nutrition support. On the M&A front, MedNow has made two strategic acquisitions. and has a purchase agreement to acquire a third over the last few months. MedVisit enhances our doctor services by adding at-home visits to our telemedicine services for those patients with complex needs. Secondly, InfuserCare Canada provides services and can fill prescriptions to our patients that the average pharmacy is not qualified to provide and doesn't have the specialized equipment and storage necessary. MedNow has also signed an agreement to purchase liver specialty group, which also can fill prescriptions to our patients that average pharmacies are not qualified to provide. The combined revenue of these companies in their last fiscal year was an aggregate of approximately $33.6 million Canadian and an aggregate gross profit of $3.3 million Canadian. MedNow is currently positioned to grow in a high barrier to entry industry. When we think about MedNow's growth, we split it into two phases. Number one, the ignition phase for calendar year 2021, and in 2022, it will be the growth phase. In calendar 2021 ignition phase, we focus on building our digital infrastructure, acquiring pharmacy licenses, and building logistics with the goal of servicing Canadians nationwide, and building our patient acquisition engine. In 2022, we will pivot to the growth phase, which we expect will include scaling the patient acquisition engine in both business-to-consumer and business-to-business divisions, growing our organic revenue and also lowering our customer acquisition costs along the way. In the calendar year Q1 2021, MedNow listed on the TSX Venture Exchange on March 9th after an oversubscribed IPO raising $37 million. Since then, MedNow has achieved many important milestones which will lead the company towards its ultimate goal of providing amazing care through digital pharmacy with a holistic approach to every person living in Canada. In July 2021, MedNow received confirmation from the Depository Trust Company that its common shares became eligible for electronic trading through DTC in the United States on the OTCQB under the ticker MDNWF. This electronic method of cleaning securities speeds up the receipt of stock and cash, thus accelerating the settlement process for investors and brokers, enables MedNow stock to be traded over a much wider selection of brokerage funds. With DDC eligibility, we have increased the pool of investors that are able to join us in our quest to reimagine the way healthcare is delivered. MedNow has also created an institutional services business called MedNow for Business. Building a successful institutional business is critical to executing our long-term strategy. MedNow for Business allows us to add large groups of patients to our platform, lowering MedNow's cost of customer acquisition and accelerating our revenue growth. MedNow actively continues efforts to target large institutional contracts, such as the recently signed agreement with the Police Pensioners Association of Ontario and Sterling Capital Brokers Ltd. These large contracts are expected to result in a lower cost of customer acquisition than traditional retail consumers. In September 2021, MedNow launched its virtual care service, a proprietary platform providing virtual care and telemedicine services, facilitated through the MedNow web application and mobile application. MedNow Virtual Care combined with the acquisition of MedVisit, an at-home doctor services business, created our doctor services business. Doctor services is currently available in the province of Ontario, and MedNow expects to further expand its coverage across Canada in calendar year 2022. Additionally, in September, MedNow received regulatory approvals from the Nova Scotia College of Pharmacists and opened for business under the trade name MedNow Pharmacy. The pharmacy services the province of Nova Scotia and can fill orders from walk-in patients such as as well as online organ spondymy. MedNow Pharmacy provides same-day delivery services in Halifax and surrounding areas. I'll now turn my update to MedNow's strategic partnerships that we entered over the last few months. Life support. In July 2021, MedNow invested $500,000 for a 9% equity interest in life support and mental health and increased its investment to 12.3% as of October 31st, 2021. Life Support Mental Health is a medical technology company focused on bridging the gap between medical and mental health professionals through clinical support in the assessment and triage of mental health issues. Mental health services are a logical extension of MedNow's platform and are a step forward toward providing mental health solutions to our client base. Our investment will act as a catalyst to further develop its mental health check platform enhancing service offering and driving revenue growth. In November, Life Support entered a partnership with a major community pharmacy chain to provide its clients across the Life Support mental health check, reinforcing MedNow's position that offering holistic services provides greater avenues to assist patients. MedNow participated in two more partnerships in November. True Diagnostics. The first partnership was on November 12th, in which MedNow acquired the license and exclusive distribution rights of True Diagnostic for a two-year term and a cash payment of $150,000 USD in order to expand our holistic care offerings on our digital platform. This will enhance MedNow's strategy to develop a digital interdisciplinary model of care, having the exclusive distribution rights of True Diagnostic, In Canada, we'll enhance MedNow's approach to provide a full-spectrum healthcare ecosystem as we continue to build a holistic approach to patient care. True diagnostic, true age, complete collection is a comprehensive way for a patient to analyze biomarkers to quantify the process of aging. Aging is the number one risk factor for most chronic diseases and death, and with the ability to quantify this process, individuals can potentially predict future diseases and treat aging as a primary objective factor. In the first quarter of 2022, it is anticipated that MedNow's patients will be able to order tests on its website, have the blood specimen taken, and ship back to the lab for testing and diagnosis. This agreement between MedNow and True Diagnostic aligns with MedNow's approach to provide a wide array of services on our easy-to-use MedNow digital platform. We'll continually endeavor unique pharmacy and healthcare solutions as part of our patient-centric approach. We recognize Canadians are expanding their initiatives when it comes to preventative medicine, and by acquiring the exclusive distribution rights to treat agnostic, we can deliver a solution for epigenetic testing for patients to live their health-based lives. And finally, DoCo Medical, the second partnership took place on November 24th, when MedNow closed a $500,000 CAD investment in DoCo Medical Inc. by way of convertible debentures. If the convertible venture is converted equity, this would equate to a 2.8% equity interest at a 17.5 CAD million per money valuation, pre-money valuation, excuse me. DoCo Medical is a virtual healthcare provider operating across the United States, currently servicing 38 states. DoCo Medical has over 100 physicians and healthcare workers engaged over its platform, which specializes in urgent care, mental health, and erectile dysfunction. DOCO Medical's platform is used daily by physicians and patients. Patients can order prescriptions and send them directly to the pharmacy of their choice, resulting in a hassle-free patient experience. Mendel's initial investment in DOCO Medical aligns with our goals of investing in the provision of exceptional quality service and discreet, fast, and convenient support to patients through digital pharmacies. Further, given the sensitive and underserviced market to support patients with erectile dysfunction, Coupled with a lack of insurance coverage in the United States, we believe this investment will show our commitment to the importance of men's health and wellness. It also serves as a platform for MedNow to access the U.S. telemedicine market, which is worth approximately $64 billion USD. To complete this call, I'll now turn it over to Ben to discuss our M&A and first quarter results. Ben?