PharmaCorp Rx Inc. Reports First Quarter 2025 Results and Announces Non-Binding Letters of Intent to Acquire Four Pharmacies

/EIN News/ -- SASKATOON, Saskatchewan, May 29, 2025 (GLOBE NEWSWIRE) -- PHARMACORP RX INC. (“PharmaCorp” or the “Corporation”) (TSXV: PCRX) is pleased to announce the filing on SEDAR+ of its unaudited financial statements together with associated MD&A for the first quarter ending March 31, 2025 as well as the execution of non-binding letters of intent to acquire four pharmacies.

Q1 2025 Financial and Operational Highlights
PharmaCorp Rx Inc. is pleased to report net income of $254,000 for the first quarter ending March 31, 2025.

“This marks an important milestone for PharmaCorp as we deliver our first quarter of positive net income,” said Terri Tatchell, Chief Financial Officer. “Our results reflect a disciplined approach to cost management, steady growth in prescription volumes, and early returns from our operating model. We are confident this momentum will continue to build in the quarters ahead.”

Same-store sales, a supplementary financial measure, increased 4.0% year-over-year compared to Q1 2024, reflecting continued organic growth across our pharmacy network. Financial results were modestly affected by the timing of the Easter holiday, which occurred in March in 2024 but shifted to April in 2025. Consequently, some seasonal revenue will be reflected in Q2 2025, creating a temporary headwind to Q1 comparisons. This timing effect is expected to normalize over the first half of the year.

Prescription volumes also remained strong, with total script count rising 3.2% year-over-year, demonstrating sustained patient engagement and activity across the network.

To review the Corporation’s Q1 2025 interim financial statements and associated MD&A please visit SEDAR+ at www.sedarplus.ca.

Non-Binding Letters of Intent to Acquire Four Pharmacies
PharmaCorp Rx Inc. is also pleased to announce that it has entered into four non-binding Letters of Intent (the "LOIs") to acquire four community pharmacies for an aggregate purchase price of approximately $12.5 million, subject to customary adjustments. These proposed acquisitions (the “Proposed Acquisitions”) are consistent with PharmaCorp’s disciplined, acquisition-driven growth strategy and, if completed, are expected to be accretive to earnings.

Transaction Terms and Funding
The anticipated $12.5 million in consideration is expected to be satisfied through a combination of cash on hand and the issuance of common shares from treasury. Final terms remain subject to negotiation and the execution of definitive agreements. If completed, the Proposed Acquisitions will not result in the creation of any new insiders or trigger a change of control under applicable securities laws. No finder’s fees will be paid in respect of the Proposed Acquisitions. The Proposed Acquisitions are arm’s length. Two of the four Proposed Acquisitions are contingent on the closing of one other Proposed Acquisition. As a result the Proposed Acquisitions can be described as three distinct groups of Proposed Acquisitions which are not contingent or conditional each other. The dates of each of the four LOIs are March 15, 2025, March 23, 2025, and March 29, 2025 (two LOIs).

Definitive Agreements, Conditions and Timeline
Completion of the Proposed Acquisitions remains subject to the execution of definitive agreements which will include the final agreed upon terms and conditions of the Proposed Acquisitions, including such terms, ‎representations, warranties, indemnities and covenants as ‎are customary in transactions similar to the ‎Proposed Acquisitions, and the satisfaction of customary conditions, including satisfactory due diligence and TSXV acceptance, where applicable. If definitive agreements are reached, closings are anticipated to occur between June 30 and August 31, 2025.

Cautionary statements
Completion of the Proposed Acquisitions is subject to a number of conditions and contingencies, including but not limited to, execution of definitive agreements, satisfactory due diligence and TSXV acceptance. There can be no assurance that the Proposed Acquisitions will be completed as proposed, or at all.

Outlook
PharmaCorp Rx Inc. remains committed to expanding its national footprint through strategic acquisitions and operational excellence, while delivering long-term value to its shareholders.

Supplementary Financial Measures
This news release also makes reference to "same-store sales”, which is a supplementary financial measure. “Same-store sales” is defined as sales from pharmacy locations owned and operated by PharmaCorp as at March 31, 2025 and historical sales information from the pharmacies operating systems. It is used to provide investors with a supplemental measure of the Corporation’s operating performance and thus highlight trends in its core business that may not otherwise be apparent when relying solely on IFRS financial measures. Management uses supplementary financial measures such as same-store sales in order to facilitate operating performance comparisons from period to period. Management also believes that supplementary financial measures are meaningful to investors because they enable investors to better understand the level of growth of our business. The Corporation cautions readers that same-store sales used in this news release may not be comparable to similar measures used by other issuers.

About PharmaCorp Rx Inc. 
PharmaCorp currently operates three PharmaChoice bannered pharmacies in Canada and will continue to acquire PharmaChoice Canada branded pharmacies as they come to market in conjunction with its strategic alliance agreement with PharmaChoice Canada. The Corporation will also acquire independently owned non-PharmaChoice Canada bannered pharmacies in Canada, and thereafter, continue to operate such acquired pharmacies under a ‎PharmaChoice Canada banner. PharmaCorp shares trade on the TSX Venture Exchange under the symbol: PCRX.

For further information, contact:

Mr. Alan Simpson
Suite #203, 303 Wellman Lane, Saskatoon, SK S7T 0J1 ‎
Tel: (306) 536-3771

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward-Looking Information: This news release contains “forward-looking information” regarding the Corporation within the meaning of applicable Canadian securities legislation. All statements, other than statements of historical fact, included herein are forward-looking information. In particular, this news release contains forward-looking information in relation to: the momentum created by the Q1 results continuing to build in future quarters; the timing effect of Easter and its impact on financial results, which is expected to normalize over the first half of the year; the Proposed Acquisitions including, the expectation that the Proposed Acquisitions will be accretive to earnings; the execution of definitive agreements for the Proposed Acquisitions, the potential closing and closing dates of the Proposed Acquisitions, the potential conditions and satisfaction of those conditions for the completion of the Proposed Acquisitions, and the consideration for the Proposed Acquisitions, including the potential issuance of common shares of the Corporation as part of the consideration for the Proposed Acquisitions; and the Corporation’s commitment to expanding its national footprint through strategic acquisitions and operational excellence, while delivering long-term value to its shareholders. This forward-looking information reflects current beliefs and is based on information currently available to the management of the Corporation and on assumptions the Corporation believes are reasonable. These assumptions include, but are not limited to: the execution of definitive agreements; the satisfaction of any conditions to the Proposed, including, without limitation, satisfactory due diligence, the acceptance of the Proposed Acquisitions by the TSXV and typical closing conditions; the receipt of all required approvals for the Proposed Acquisitions‎, including any board approvals or third party consents; market acceptance of the Proposed Acquisitions‎; and the continued supply of pharmacies for purchase by PharmaCorp at prices satisfactory to PharmaCorp. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Corporation to be materially different from those expressed or implied by such forward-looking information. Such risks and other factors may include, but are not limited to: general business, economic, competitive, political and social uncertainties; general capital market conditions and market prices for securities; delay or failure to receive board of directors, third party or regulatory approvals; competition; changes in legislation, including environmental legislation, affecting the Corporation; the timing and availability of external financing on acceptable terms; conclusions of economic evaluations and appraisals; and lack of qualified, skilled labour or loss of key individuals. A description of additional risk factors that may cause actual results to differ materially from forward-looking information can be found in the Corporation’s disclosure documents on the SEDAR+ website at www.sedarplus.ca. Although the Corporation has attempted to identify important risks and factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. Readers are cautioned that the foregoing list of factors is not exhaustive. Readers are further cautioned not to place undue reliance on forward-looking information as there can be no assurance that the plans, intentions or expectations upon which they are placed will occur. Forward-looking information contained in this news release is expressly qualified by this cautionary statement. The forward-looking information contained in this news release represents the expectations of the Corporation as of the date of this news release and, accordingly, is subject to change after such date. However, the Corporation expressly disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities law.