Shiny Health & Wellness Signs Asset Purchase Agreement for First Pharmacy Acquisition as Part of Retail Expansion Plans

(All amounts are in Canadian dollars unless otherwise said)

TORONTO, Sept. 23, 2022 /CNW/ – Shiny Wellness & Wellness Corp. (“Shiny Well being” or the “Firm”) (TSXV: SNYB) is happy to announce that, by its subsidiary mīhī Overall health & Wellness (collectively “the Business”), it has entered into a definitive Asset Purchase Settlement to entire its formerly-introduced acquisition of Cotton Mill Pharmacy (“Cotton Mill”) for a total acquire price tag of $700,000 plus roughly $135,000 in inventory. The acquisition, which was at first introduced on May possibly 16, 2022, is now scheduled to shut on Oct 3, 2022, subject to regulatory approvals and other customary problems to closing. Closing of the Cotton Mill transaction will be the initial pharmacy acquisition in furtherance of the Company’s broader retail enlargement system into well being and wellness. In operation given that 2015, Cotton Mill is a fully unbiased no banner pharmacy situated in Cornwall, Ontario.

Shiny Health and fitness & Wellness Corp. (CNW Team/Shiny Health & Wellness Corp.)

“We are thrilled to begin executing on our expanded retail tactic into wellness and wellness as we prepare to shut the acquisition of our initial pharmacy in the coming weeks,” claimed Kevin Reed, Chairman and Chief Government Officer. “We keep on to actively construct our pipeline of pharmacy targets throughout Ontario with the goal of turning into a trusted resource for overall health and wellness answers and expert services to improve lives.”

Acquisition Financing

To finance the acquisition, the Enterprise has gained a dedicated arrangement from Care Lending Team for a $600,000 secured acquisition 10-12 months expression mortgage (the “Acquisition Mortgage”), which will be completely drawn at closing.  The Acquisition Personal loan will bear curiosity equivalent to the 5-12 months Authorities of Canada Bond level at shut additionally 440 foundation factors and be repayable regular in instalments of principal and curiosity based on a 120-month amortization schedule.  Pursuant to the Asset Obtain Arrangement, $100,000 of the acquire rate will be paid out by means of a a single-12 months vendor just take-back again bank loan at an once-a-year fascination amount of 4.%. The Company expects to pay out the harmony of the order value (around $135,000 in respect of inventory) from cash on hand.

“After the transaction closes, management’s shop-stage progress system will aim on improving upon the client and shopper practical experience, growing profits building options, and pursuing operating efficiencies to enrich margins and EBITDA,” claimed Mike Nadeau, Chief Running Officer and President of Pharmacy.

Ongoing Expansion Into Retail Pharmacy

Buying retail pharmacies is an integral section of Shiny Health’s development program and merger and acquisition aim as it expands outside of retail hashish operations. The aim is to establish a community of retail pharmacies with the intention of obtaining operational scale. Past Cotton Mill, the Firm is presently analyzing five further more acquisition candidates with active because of diligence ongoing.

In addition, the Enterprise has engaged the guide pharmacist and co-proprietor of Cotton Mill in a consulting administration agreement for a 12-month phrase from the closing date to assistance the Company’s ongoing pharmacy M&A goals and functions.

Neither the TSX Undertaking Trade nor its Regulation Services Service provider (as that time period is described in the policies of the TSX Venture Trade) accepts obligation for the adequacy or precision of this release.

About Treatment Lending Team

Treatment Lending Group (CLG) is a privately held Canadian funding company supplying ground breaking and personalized lending answers to the health care and golf industries and other niche markets. With an first portfolio in excessive of $60 million, serving a considerable amount of consumers, Treatment Lending Team brings deep industry expertise alongside with a determination to setting up extended-expression, caring interactions.

About Shiny Well being & Wellness

Shiny Well being & Wellness Corp. is on a mission to enable people in no way settle, live entirely by staying a reliable supply for wellness and wellness answers and services. The Company recently broadened its retail progress system beyond grownup-use hashish by developing mīhī Health and fitness & Wellness, a new line of business enterprise centered on setting up a community of community pharmacies throughout Ontario. Striving to offer a much more numerous and available cannabis practical experience for grownup individuals, the Business also operates ShinyBud Hashish Co., a properly-established brand in Ontario strategically located in marketplaces significantly less saturated with hashish retailers. The Firm’s board and management crew hold in depth retail working expertise, a critical aggressive differentiator in leading its growth technique. Shiny Overall health trades on the TSX Enterprise Trade (TSXV) under the ticker image SNYB. For a lot more data, you should stop by www.shinyhealthandwellness.com.

Cautionary Statement Pertaining to Ahead-Hunting Information and facts

This news launch incorporates statements (“forward-wanting statements”) that represent ahead-on the lookout data inside of the indicating of relevant Canadian securities legislation. Ahead looking statements relate to upcoming overall performance, occasions, results or situations or are or else prospective in nature, are centered upon inside assumptions, views, estimates, plans, beliefs and expectations about potential disorders, developments and classes of motion. They are inherently unsure as they count on the accuracy of this sort of assumptions, views, estimates, options, beliefs and anticipations, which can not be certain, and are subject to acknowledged and unfamiliar hazards and uncertainties that will bring about real effects to differ from those people indicated, advised or predicted in the ahead-hunting statements. The dissimilarities may perhaps be material and adverse to the Firm.

All statements other than statements of recent or historic point constitute forward-looking statements. Forward-wanting statements are usually, but not always, recognized by the use of words and phrases these types of as “foresee”, “believe that”, “count on”, “intend”, “request”, “prepare”, “purpose”, “budget”, “forecast”, “concentrate on”, “estimate”, “objective”, “propose”, “forecast”, “potential”, “challenge”, “go on”, “pursue”, “may well”, “will”, “may possibly”, “must”, “could” or comparable words suggesting long run results or situations or statements relating to an outlook.

Without the need of limiting the foregoing, this news launch includes forward-searching statements pertaining to: closing of the Cotton Mill acquisition and the anticipated timing thereof and Shiny Health’s advancement technique and enlargement into the pharmacy sector. Ahead-on the lookout statements, and the underlying assumptions, viewpoints, estimates, plans, beliefs and expectations on which they are based mostly, are inherently uncertain as they depend on long term conditions, developments and classes of motion that might or not occur or arrive to be. There can be no assurance that the underlying assumptions, viewpoints, estimates, programs, beliefs and anticipations will prove to be suitable and, accordingly, no assurance that the foreseeable future general performance, situations, results or circumstances expressed or implied in the forward-searching statements herein will manifest or be recognized. Actual effects will differ, and the distinctions may well be substance and adverse to the Corporation.

In addition to the other things and assumptions that may possibly be recognized herein, content variables and assumptions made use of to establish the forward-wanting statements contained in this news release incorporate, between other issues, assumptions, opinions, estimates, programs, beliefs and expectations regarding: the performance of our retail cannabis and pharmacy method our means to detect and consummate accretive acquisitions, grow our retail store community within budgeted costs and timelines, travel exact-store profits development, boost margins and crank out new income streams our capability to attain more licenses, authorizations and regulatory approvals (like any needed approvals of the TSX Undertaking Exchange) as and when needed to suit our progress and business enterprise approach the dimension of the cannabis retail market and estimated part at present unserved, and the migration of buyers from the illicit industry to authorized market our capability to capture extra market place share our potential to attract franchisees to the Shiny Health’s brand and model, and the phrases of franchise arrangements the range, variety and places of new suppliers the applicability and relevance of our expertise in existing facilities and places to new facilities and places our ability to impact our consumer order selections our skill to preserve, improve, and develop our attractiveness inside our addressable marketplace, and to customise solutions and inventory for the market place that resonate with our concentrate on client foundation our means to supply product that is critical to our menu offerings our ability to leverage our landlord network and create a flexible lease portfolio our means to take care of fees and push operating efficiencies our capacity to keep important administration and non-administration personnel, and to use, educate and inspire workers the availability of funds, and our means to acquire any required external funding on suitable phrases our competitive strengths and the effects of level of competition the accuracy of our money versions traits in the retail hashish and pharmacy sectors the regulatory framework relevant to the retail hashish and pharmacy industries in Canada, and the path of any variations in that framework and underlying regulations and normal economic, political and social disorders affecting the retail cannabis and pharmacy organizations.

Forward-on the lookout statements are subject matter to acknowledged and unfamiliar threats, uncertainties and other components that will induce true success to differ from individuals indicated, recommended or predicted in the ahead-wanting statements, and the variances may perhaps be materials. Viewers should for that reason physical exercise caution and not rely on ahead-on the lookout statements, which rest on assumptions, views, estimates, options, beliefs and expectations as of the date designed that may possibly adjust, and are in any function not a warranty of future overall performance or a promise of any potential outcomes. We consider such dangers, uncertainties and other elements to incorporate, devoid of limitation, the subsequent: challenges linked with the retail cannabis and pharmacy industries typically adverse modifications in the typical economic or market disorders, and to buyer paying out in the facilities in which we function unexpected road blocks that protect against, delay or otherwise compromise the execution of our growth approach inability to attain additional licenses and authorizations (and other desired regulatory approvals) as and when expected to fit our expansion and small business program ineffectively controlling our development failure to protected fascinating store areas lack of ability to secure leasehold premises for new retailers on appropriate terms, pitfalls associated with leasing retail room adverse modifications to the regulatory framework applicable to the retail cannabis and pharmacy industries in Canada, or to other legal guidelines and regulations impacting our company (which include taxes) unanticipated diminishment of the Shiny Well being or mīhī brand names or any trademark protections damaging publicity for us or our enterprise marketing and advertising tactics that are much less productive than envisioned our very competitive market and the relative dimensions and assets of some of our competitors becoming unable to correctly open and run new stores profitability erosion from surprising price will increase slower profitability of new suppliers failure to determine, recruit and contract with a enough amount of competent franchise companions absence of accessibility to money to fund enlargement, or much more pricey funding conditions than predicted a data protection breach that final results in improper use or disclosure of private client or staff data dangers affiliated with business consolidation decline of crucial management or other important personnel, or sudden problems in attracting, teaching and/or motivating team as important to execute our business enterprise approach sudden issues in increasing product sales or connecting with our purchaser foundation incapacity to fulfill other money targets any material statements produced towards us, which could result in litigation insolvency challenges with get-togethers with whom we do business enhanced expenditures of being a community business the forward-hunting statements contained in this presentation proving to be inaccurate and incorrect irrespective of there getting a realistic basis therefor at the time they were being produced and these other hazards, uncertainties and other variables as might be reviewed or set out from time-to-time in Shiny Health’s general public disclosure files (which include, with no limitation, people challenges determined in the Firm’s management’s discussion and assessment submitted by the Enterprise with relevant securities regulatory authorities in Canada and offered below its issuer profile on SEDAR at www.sedar.com).

The foregoing lists of materials assumptions and dangers, uncertainties and other aspects are not exhaustive. The forward-looking statements contained herein communicate only as of the day of this news release. The Enterprise disclaims any intention, obligation or undertaking to update or revise any forward wanting statements, regardless of whether as a result of new information, foreseeable future events or in any other case, or to reveal any big difference in between actual results and individuals indicated, proposed or anticipated in any ahead searching statements, except as may possibly be expected beneath applicable securities legal guidelines.

All ahead-looking statements contained in this news launch and in any linked reports or disclosures submitted or issued by the Business, or produced by the Company’s administrators, officers and other individuals approved to speak on its behalf with regards to the subject matter subject hereof, are expressly capable by this cautionary statement.

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