Investor Presentation - Q2 2021 Canada's On-Demand Virtual Pharmacy
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TSXV: MNOW
Canada’s On-Demand Virtual Pharmacy
Investor Presentation
Q2 2021
Canada’s On-Demand Virtual Pharmacy Q 2 2 0 2 0 | C O N F I D EN T I A L 1
Notice And Disclaimer
General
Unless otherwise indicated or the context otherwise requires, all references in this presentation to “Mednow”, “Mednow.ca”, the “Company,” “we,” “our,” “ours,” “us” or similar terms refer to Mednow Inc., together with its subsidiaries. All references to “$”, “C$”,
“dollars” are to Canadian dollars. All references to “US$” are to United States dollars. Capitalized terms used herein that are not otherwise defined have the meanings ascribed to such terms in the final long form prospectus of Mednow dated February 26, 2021 (the
“Prospectus”) available on SEDAR under Mednow’s profile at www.sedar.com.
Any graphs, tables or other information demonstrating our historical performance or that of any other entity contained in this presentation are intended only to illustrate past performance and are not necessarily indicative of our or such entities’ future performance.
The information contained in this presentation is accurate only as of the date of this presentation or the date indicated. No securities regulatory authority has expressed an opinion about the securities described herein and it is an offence to claim otherwise.
Cautionary Note Regarding Forward-Looking Information
This presentation contains “forward-looking information” for purposes of applicable Canadian securities laws (“forward-looking statements”). Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based on our
current beliefs, expectations or assumptions regarding the future of our business, future plans and strategies, our operational results and other future conditions. Forward-looking statements can be identified by words such as “anticipate”, “believe”, “estimate”,
“expect”, “intend”, “may”, “plan”, “predict”, “project”, “seek”, “target”, “potential”, “will”, “would”, “could”, “should”, “continue”, “contemplate” and other similar expressions, although not all forward-looking statements contain these identifying words. These
forward-looking statements include all matters that are not historical facts, and include statements regarding our intentions, beliefs or current expectations concerning, among other things, our financial performance, financial condition, liquidity, prospects, growth,
strategies and the industry in which we operate. Although we base the forward-looking statements contained in this presentation on assumptions that we believe are reasonable, we caution you that actual results and developments (including our financial performance,
financial condition and liquidity, and the development of the industry in which we operate) may differ materially from those made in or suggested by the forward-looking statements contained in this presentation. Despite a careful process to prepare and review the
forward-looking statements, there can be no assurance that the underlying opinions, estimates, and assumptions will prove to be correct.
By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. Forward-looking information involves known and unknown risks and uncertainties, many of
which are beyond our control, which could cause actual results to differ materially from those that are disclosed in or implied by such forward-looking information. These risks and uncertainties include, but are not limited to, those described in greater detail under “Risk
Factors” in the Prospectus. If any of these risks materialize, or if any of the above assumptions underlying forward-looking statements prove incorrect, actual results and developments may differ materially from those made in or suggested by the forward-looking
statements contained in this presentation. Given these risks and uncertainties, you are cautioned not to place undue reliance on these forward-looking statements. Any forward-looking statement that we make in this presentation speaks only as of the date of this
presentation, and, except as required by law, we undertake no obligation to update any forward-looking statements or to publicly announce the results of any revisions to any of those statements to reflect future events or developments. Comparisons of results for
current and any prior periods are not intended to express any future trends or indications of future performance, unless specifically expressed as such, and should only be viewed as historical data.
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This presentation includes certain trademarks, which are protected under applicable intellectual property laws and are the property of Mednow. Solely for convenience, our trademarks referred to in this presentation may appear without the ® or ™ symbol, but such
references are not intended to indicate, in any way, that we will not assert our rights to these trademarks to the fullest extent under applicable law. All other trademarks used in this presentation are the property of their respective owners.
Cautionary Note Regarding United States Securities Laws
This presentation does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the securities of Mednow in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the
securities laws of such jurisdiction. The securities of Mednow have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any state securities laws and may not be offered or sold within the United
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IN MAKING AN INVESTMENT DECISION, INVESTORS MUST RELY ON THEIR OWN EXAMINATION OF THE COMPANY, INCLUDING THE MERITS AND RISKS INVOLVED. THE SECURITIES OF THE COMPANY HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION OR BY ANY STATE SECURITIES COMMISSION OR REGULATORY AUTHORITY, NOR HAVE ANY OF THE FOREGOING AUTHORITIES PASSED ON THE ACCURACY OR ADEQUACY OF THIS PRESENTATION. ANY REPRESENTATION TO THE CONTRARY IS A
CRIMINAL OFFENSE.
Readers should be aware that the acquisition, holding or disposition of the securities of Mednow may have tax consequences both in Canada and the United States. The tax consequences of the acquisition, holding or disposition of such securities for investors who are
resident in, or citizens of, the United States are not described herein. Consequently, any prospective investor is advised to consult their own tax advisors regarding the application of federal income tax laws to their particular circumstances, as well as any state,
provincial, local, foreign and other tax consequences of investing in the securities of Mednow and acquiring, holding or disposing of such securities. Investing in the securities of Mednow involves risks. An investment in the securities is suitable only for investors who
fully understand, and are capable of bearing, the risks of such investment. Prospective investors should review and consider carefully the information available on Mednow’s profile at www.sedar.com, including the “Risk Factors” described in the Prospectus.
Canada’s On-Demand Virtual Pharmacy 2
Mednow: All Your Pharmacy Needs Delivered
Mednow aims to become a household name by improving healthcare access through best-
in-class service, proprietary technology, and enhanced delivery.
To provide patient access To have national To provide access to virtual To deliver best-in-class
via a user-friendly app, pharmacy offering healthcare professionals pharmacy services from
website, and call centre experienced founders
Canada’s On Demand Virtual Pharmacy
Canada’s On-Demand Virtual Pharmacy 3
Patients see their community
pharmacists up to
10x
more frequently than they
see family physicians 1
50% 2/3
of Canadians with chronic illness do of Canadians over the age of 65 take
not take medications as prescribed 2 more than 3 medications a day 2
1. Canadian Pharmacists Association, 2020
2. Canadian Institute for Health Information, Drug Use Among Seniors, 2016
Canada’s On-Demand Virtual Pharmacy 4
A Large Addressable & Untapped Market
● Despite a Canadian landscape with over 10,500 pharmacies,
management has identified less than 10 pharmacies that are an
$264 Billion online delivery-based business model
Healthcare $2 Billion ● Telemedicine is expected to grow by 64% year over year with a
Market 1 Telemedicine
Market 3 38% CAGR from 2020-2025 4 and management believes as more
people consult their doctor online, more people will require
pharmaceutical consultations and medication delivery
● Mednow seeks to affect disruption in the healthcare
$47 Billion market as the sectors of grocery, restaurant, and
Pharmacy transportation have experienced from on-demand
Market 2 technology-powered companies
1. CIHI National Health Expenditure, 2019
2. IBISWorld, Pharmacies & Drug Stores in Canada, 2020
3. Fortune Business Insights, Telehealth Market Size, Share & COVID-19 Impact Analysis […], 2020; Canadian figures estimated from North American market
4. Frost & Sullivan, Telehealth to Experience Massive Growth with COVID-19 Pandemic […], 2020
Canada’s On-Demand Virtual Pharmacy 5
Key Busines Goal: Adherence Leads to Loyalty
Mednow’s PillSmartTM system helps improve medication adherence by organizing medications and vitamins
by date and time in easy-to-use pouches at no additional cost to customers 1
Also results in recurring revenue…
Average annual revenue per customer of $1,500
over an estimated lifetime of 10 years with 33%
$5,000 $100-$200
Lifetime Value Customer
gross margins2 (LTV) 2 Acquisition Cost
(CAC) target
1. Trademark Pending. Similar to PillPack (USA) and PocketPills (Canada)
2. Based on internal company calculations
Canada’s On-Demand Virtual Pharmacy 6
Diagnosis to Delivery: Mednow Virtual Care
#1 #2 #3
Patient requests a Doctor Script Filled and Delivered
Patient Meets with Same Day by Mednow
Appointment Through Virtual Doctor
Mednow’s App Pharmacy
Key Company Highlights
• Partnered with proven operators to scale quickly
• A telemedicine offering combined with a digital pharmacy
• Capturing physician services revenue
Canada’s On-Demand Virtual Pharmacy 7
Goal is to be a Full Spectrum Digital Healthcare Provider
Adjacent Health Complementary
Services Medical Technology
Mednow Mednow
Virtual Care Patient Pharmacy
Holistic Digital Same Day Delivery Infrastructure via
Experience acquisition of more fulfillment sites
nation wide
Acquisition Targets
In House Capability
Canada’s On Demand Virtual Pharmacy
Canada’s On-Demand Virtual Pharmacy 8
Key Accomplished Milestones
Accelerated development to service the rapid adoption of digital healthcare in Canada
September 2020 December 2020 Since IPO
Web App Entered into Strategic
and Marketing Agreements to Establish See next slide
Site Released Mednow Telemedicine
November 2020
June 2020 March 2021
Established Ontario
$6.5M Raised in (ON) and British IPO’d on TSXV under ticker
Oversubscribed Columbia (BC) symbol MNOW.
Series A Round Fulfillment Centers1. Raised $37M in IPO financing.
Same Day Delivery
Capability Built Out.
1. Mednow East Inc. and Mednow Pharmacy Inc. are fulfillment partners
Canada’s On Demand Virtual Pharmacy
Canada’s On-Demand Virtual Pharmacy Q 2 2 0 2 0 | C O N F I D EN T I A L 9
Since the IPO
Technology
• Developed and began executing on Mednow’s product road map
• Transition to an in-house technology team to control pace and quality of product
• Investments in cyber security and privacy
National Pharmacy Footprint
• Manitoba pharmacy license application
• Atlantic Canada, Quebec and Alberta are currently being targeted as next fulfillment locations
• Forging ahead to establish a national pharmacy at a rapid pace
Corporate Development
• Made key hires notably a Chief Growth Officer as well as team build out in finance, operations and
pharmacy
• IR activities to educate retail investors through BTV and Native Ads
• NCIB and market maker to support stock
Canada’s On-Demand Virtual Pharmacy 10Anticipated Go-To-Market Strategy
Mednow has a strong customer acquisition plan for 2021 as the company scales nationally
Q1 2021 Q2 20211 Q3 20211 Q4 20211
Fully capitalize Launch telemedicine National pharmacy Establish National
the company and service offering footprint business to business
IPO clients
1. This represents Mednow’s targeted growth objectives; however, there is no guarantee that they will be achieved
within the time frames presented, or at all.
Canada’s On Demand Virtual Pharmacy
Canada’s On-Demand Virtual Pharmacy Q 2 2 0 2 0 | C O N F I D EN T I A L 11Targeting a National Footprint
• Same-day delivery service in Greater Toronto and Greater Vancouver
accessible to 8.5 million Canadians today
• Halifax, Montreal, Winnipeg, Calgary, Edmonton targeted next
Fulfillment Centres Being Built
Operational Fulfillment Centres
Targeted Fulfillment Centres
Canada’s On Demand Virtual Pharmacy
Canada’s On-Demand Virtual Pharmacy Q 2 2 0 2 0 | C O N F I D EN T I A L 12National coverage permits B2B opportunities
Business-to-Business and Business-to-Doctors Individual Patients B2C/B2D
offering can lead to rapid step-wise growth to
user base
Brokers/Advisors
Q2 2021 Q4 20211
ON and BC National
Marketing Partnerships
Individual patients B2C + B2B B2B
Industry Associations
1. This represents Mednow’s targeted growth objectives; however, Manufacturer Services
there is no guarantee that they will be achieved within the time
frames presented, or at all.
Canada’s On Demand Virtual Pharmacy
Canada’s On-Demand Virtual Pharmacy Q 2 2 0 2 0 | C O N F I D EN T I A L 13Founders
• Computer engineer with 15 years of experience in pharmacy, technology, and healthcare logistics
• Built and managed Air Liquide’s (EPA: AL) Western Canada home oxygen logistics network after assuming various roles
in finance, M&A, strategy, and marketing in France and Canada.
• Led retail & specialty pharmacy strategy initiatives at McKesson (NYSE: MCK) and Innomar Strategies, a subsidiary of
AmerisourceBergen (NYSE: ABC)
• Vice President of Digital Strategy at the Care Group of Pharmacies.
Karim Nassar, • Karim holds a Bachelor’s of Applied Science from the University of Toronto and an MBA from Queen’s University
CEO & Co-Founder
• Ali holds a Doctor of Pharmacy degree from the University of Toronto and has over 20 years of experience in
pharmacies, business development, and operations
• CEO and Co-Founder of the Care Group of Pharmacies, the largest pharmacist controlled independent pharmacy chain
in Canada with over 45 locations and $150M of revenue
• Recently completed a $30M growth investment by Crédit Mutuel Equity, a €3B private equity fund of Crédit Mutuel
Alliance Fédérale.
Ali Reyhany, • Named one of Canada’s Top 40 Under 40 for 2020, presented by BNN Bloomberg and the Financial Post
Director & Co-Founder
• Holds a Pharmacy degree from the University of Toronto and a Bachelor’s of Science degree from Queen’s University
• Purchased first pharmacy the day he graduated pharmacy school
• Has amassed a pharmacy network of over 50 pharmacies and health care services
• Founder and Chair of Liver Care Canada, a network of specialty liver disease treatment clinics
Felipe Campusano,
Director & Co-Founder
Canada’s On-Demand Virtual Pharmacy 14Advisors & Other Directors
Dr. Karim Vellani, Medical Director Chris Fischer, Medical Managing Partner
Family physician at St. Michael’s Hospital Previously Director of Operations for the University of Ottawa
Founder and Medical Director of MediCall Health Services Director of the Ontario University and College
Lecturer at the University of Toronto Health Association since 2006
Sameer Lalji, Technology Advisor Ghassan Halazon, eCommerce Advisor
Chief Product Officer at VerticalScope Founder and CEO of EMERGE Commerce (TSXV: ECOM)
Previously CTO at DealTap, Managing Director for Majid Al Canada’s Top 40 under 40 honourees for 2020, presented by
Futtaim in the United Arab Emirates, and BNN Bloomberg and National Post
Advisor for Quantum Mob and Band of Coders
Kia Besharat, Director Mahdi Shams, Director
Senior Managing Director at Gravitas Securities Partner at MLT Aikins LLP
Director of EMERGE Commerce (TSXV: ECOM) Advises clients on corporate governance, continuous
Investment Industry Association of Canada (IIAC) as a Top disclosure obligations, director and officer duties and
40 Under 40 Award Nominee in 2018. obligations and general corporate law matters
Canada’s On-Demand Virtual Pharmacy 15Mednow’s USP is Quality Patient Experience
See what our customers are saying, or better yet, try Mednow Pharmacy yourself!
Canada’s On-Demand Virtual Pharmacy 16Investments In Digital Healthcare & Pharmacy
Vancouver-based Toronto-based Pillway Vancouver-based WELL Manchester, US-based Toronto-based Well.ca is Toronto-based
PocketPills is a digital is a full-service digital Health is the largest PillPack is an online a Canadian online Mednow is a
pharmacy allowing pharmacy that presorts single chain network of pharmacy that uses retailer that provides pharmacy in your
users to refill medications by dosage primary care clinics in technology to manage health, wellness, natural, pocket offering an all-
medications, manage, and offers free at- British Columbia and medication and baby, and beauty in-one patient
and order prescriptions home delivery every provides electronic coordinate refills, while products. Well.ca experience from
from their mobile month. WELL Health medical records (EMR) delivering prescriptions features Canada’s largest diagnosis 2 to delivery.
devices and is only made a C$5M minority serving over 2,000 on a monthly basis. assortment of green and
available for investment in Dec-20. medical clinics and natural brands.
Canadians. 10,000 physicians.
Amazon (NASDAQ: McKesson (NYSE: MCK) Mednow (TSXV:
Private Company Private Company AMZN) acquired PillPack acquired Well.ca MNOW) raised gross
Raised C$40M+ Raised C$5M+ TSX: WELL for US$750M+ in Dec-17 proceeds of $37M in
Mkt. Cap. C$1.3B 1 IPO
1. As per S&P Capital IQ on 21-Jan-21; 2. Currently offered through third-party providers.
The information presented above is comprised of "comparables", which is information that compares Mednow to other issuers utilizing various financial metrics. The other issuers in the comparables were included on the basis that they are telemedicine, virtual pharmacy or healthcare companies and are considered
to be an appropriate basis for comparison to Mednow because they operate in the same or a similar industry to Mednow. The financial metrics were included on the basis that they represent key performance indicators of public companies. Information about the other issuers in the comparables was obtained from
public sources and has not been independently verified by Mednow or the agents. There are many risks associated with relying upon the comparables to make an investment decision, including the risk that the performance of Mednow will not necessarily meet or exceed those of the comparable issuers and there is
no guarantee that an investor will achieve a return on investment similar to those issuers. If the information concerning the comparables contains a misrepresentation, an investor in Mednow will not have a remedy under securities legislation.
Canada’s On-Demand Virtual Pharmacy 17Why Mednow?
PROVEN MANAGEMENT ON-DEMAND VIRTUAL PHARMACY
Co-Founders grew their previous venture to $150M Focused on building national infrastructure that will
in revenue before securing a $30M investment from provide maximum value to patients and customers in
Crédit Mutuel Equity, the private equity arm of the the virtual and delivery-based health care sectors.
5 th largest bank in France.
BEST-IN-CLASS HOLISTIC CARE OFFERING ALL-IN-ONE ECOSYSTEM
Building a pharmacy-first offering supported with The future of the Mednow ecosystem will begin from
telemedicine provided by a third-party service the moment a consumer speaks with a doctor, to the
provider. prescription being filled by the on-demand virtual
pharmacy, and ending at the patient’s desired place
of delivery (e.g. home, office).
Canada’s On-Demand Virtual Pharmacy 18Mednow in the News …
“ An online pharmacy and virtual health provider
looking to improve Canadian’s Health using “ Mednow.ca’s deep industry knowledge coupled
with a growing demand for virtual care and
technology and home delivery
pharmacy delivery makes it a very attractive
opportunity in the Canadian investment
landscape
“ Mednow.ca was designed with the best patient
experience in mind, it sets a new standard for
quality care paired with virtual access to all
pharmacy services
“ “Mednow is essentially a virtual pharmacy,
offering patients access to pharmacy services via a
webbased app or website””
“ All-Encompassing Virtual Platform Aims to Disrupt
Canada’s Pharmacy Industry
Canada’s On-Demand Virtual Pharmacy 19Thank You
Contact us:
ir@mednow.ca
www.mednow.ca
For more information, visit our website, where you willfind
links to our FAQ and How It Works. You can also always send us
an email. The Mednow team is always happy to answer any of
yourquestions.
Canada’s On Demand Virtual Pharmacy
Canada’s On-Demand Virtual Pharmacy Q 2 2 0 2 0 | C O N F I D EN T I A L 20You can also read
