SASKATOON, Saskatchewan, Sept. 03, 2025 (GLOBE NEWSWIRE) -- PHARMACORP RX INC. (“PharmaCorp” or the “Corporation”) (TSXV: PCRX) is pleased to announce that it has entered into definitive share purchase agreements, each dated August 29, 2025 (the “Agreements”), to acquire from the same arm’s length vendors (the “Vendors”) a 100% interest in two PharmaChoice Canada bannered pharmacies located in Western Canada, one of which includes the associated lands and building (the “Acquisitions”). The aggregate purchas ...

For personal use only 2025 Full Year Results Presentation 27 August 2025 Vikesh Ramsunder – CEO & Managing Director Mark Davis – CFO For more information contact: Gary Woodford Head of Corporate Affairs gary.woodford@sigmahealthcare.com.au www.sigmahealthcare.com.au Agenda Sigma is a stronger, more integrated healthcare business — one with scale, capability, market reach and growth For personal use only 1. Highlights 5.Q&A 2. Financial performance 3.Operational highlights and strategic execution 4. FY26 Out ...

Core Viewpoint - PharmaCorp Rx Inc. reported strong operational momentum and financial results for Q2 2025, highlighting its national acquisition strategy and growth in pharmacy-level contributions [2][4]. Financial Highlights - The company generated revenues from three operating pharmacies, with same-store sales increasing by 11.3% year-over-year compared to Q2 2024 [8]. - Prescription volumes rose by 3.5% year-over-year, indicating sustained patient engagement [8]. - The net loss for the quarter was attributed to investments in corporate infrastructure and deferred executive compensation from 2024 [5][8]. Operational Update - Key investments were made in systems, personnel, and integration processes to support scalable national growth [5]. - The company completed the acquisition of its fourth pharmacy in Western Canada, enhancing its national footprint [6][8]. Subsequent Events - On August 13, 2025, PharmaCorp entered into a credit agreement with CIBC, providing up to $20.5 million in committed credit facilities to support its acquisition strategy [7]. - A separate $5 million credit facility was established to support the Pharmacist Co-Ownership Program, enabling pharmacists to acquire ownership positions [7]. Pipeline Progress - PharmaCorp is actively working to finalize purchase and sale agreements related to previously announced letters of intent, expecting to close additional transactions in the second half of the year [9]. Company Overview - PharmaCorp Rx Inc. focuses on empowering pharmacists to become equity partners while supporting the continuity of care and succession for retiring pharmacy owners [12]. - The company operates four PharmaChoice Canada bannered pharmacies and aims to acquire more pharmacies under this brand [12].

Core Insights - PharmaCorp RX Inc. has secured a credit agreement with Canadian Imperial Bank of Commerce (CIBC) for up to $20,500,000 in committed credit facilities, which includes a $10,000,000 accordion feature and a $1,000,000 Visa credit facility to support its acquisition strategy and operational expansion [1][4][8] Credit Facilities - The credit facilities consist of a $17,500,000 committed acquisition term facility with a $10,000,000 accordion feature, allowing for increased borrowing capacity as acquisition opportunities arise, and a $3,000,000 committed revolving operating line for working capital [8] - A separate $5,000,000 credit facility is established to support the Pharmacist Co-Ownership Program, aimed at addressing the capital access challenges faced by pharmacists [2][3] Pharmacist Co-Ownership Program - The Pharmacist Co-Ownership Program provides loans to pharmacists wishing to acquire ownership in the PharmaCorp pharmacy where they work, financing up to 100% of their equity investment with competitive rates and repayment terms of up to 15 years [3][4] - This program is designed to remove barriers to ownership and facilitate long-term wealth creation for pharmacists through co-ownership with PharmaCorp [4] Company Operations - PharmaCorp currently operates four PharmaChoice Canada bannered pharmacies and plans to continue acquiring additional PharmaChoice Canada branded pharmacies as they become available [5] - The company is also open to acquiring independently owned non-PharmaChoice Canada bannered pharmacies and will operate them under the PharmaChoice Canada banner post-acquisition [5][6]

Financial Data and Key Metrics Changes - For Q2 2025, revenue grew 15% to $344.3 million, driven by solid low double-digit organic growth and contributions from recent acquisitions and greenfields [22] - Adjusted EBITDA was $25 million, up 15% year over year, with margins holding steady at 7.2% [23] - Adjusted EPS came in at $0.23, and the company maintained adjusted EBITDA margins at 7.2%, consistent with the prior year [6][22] - Cash position increased by approximately $4.8 million from Q1, ending the quarter with $18.8 million in cash [23] Business Line Data and Key Metrics Changes - Resident count increased 12% to over 195,000 [22] - The company added three new pharmacies this quarter, two via acquisition and one greenfield startup [9][10] - The recent acquisitions and greenfield startups are expected to account for a high single-digit percentage of 2025 revenue but will not contribute to EBITDA for the full year [26][27] Market Data and Key Metrics Changes - The company is expanding its presence in high-growth markets, including a new pharmacy in Naples, Florida, and acquisitions in Kansas and Washington [9][10] - The company anticipates typical seasonality in Q4 driven by COVID and flu vaccine activity, which turned profitable last year [24] Company Strategy and Development Direction - The company is focused on disciplined expansion into attractive high-growth markets and views M&A as an attractive use of capital [7][10] - The company is committed to operational excellence and customized service tailored to the communities served [10] - The long-term growth thesis remains intact, with a focus on organic growth, strategic greenfield opportunities, and a robust acquisition pipeline [21][28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in funding future growth with internally generated cash and highlighted the strong year-to-date performance [6][7] - The company is proactively addressing changes in the policy environment, particularly regarding the Inflation Reduction Act and its impact on drug pricing [14][15] - Management remains optimistic about the ability to resolve pricing challenges and is engaged in constructive discussions with PBMs [18][19] Other Important Information - The company completed a non-dilutive secondary offering, nearly doubling its public float and improving trading dynamics [13] - The company recorded $1.1 million in costs associated with being a public company that did not exist in the prior year quarter [23] Q&A Session Summary Question: Is the vaccine program at a steady state or is there still potential for growth in Q4? - Management indicated that the vaccine program is at a steady state with general growth of the overall business [33] Question: When do PBM negotiations typically conclude? - Management stated that they are making good progress in negotiations and will update guidance as they approach Q4 [34] Question: Has being a public company changed the prospects or visibility of the company? - Management noted that increased visibility in public markets is a strong affirmation of the company and its services [36] Question: Can you elaborate on the organic growth drivers? - Management highlighted that organic growth is driven by share gain, patient acuity, and more complex drug regimens [43] Question: What is the current state of the acquisition pipeline? - Management confirmed that the acquisition pipeline remains strong, with human capital being the main limiting factor [44][45] Question: Can you provide figures on the recent managed healthcare pharmacy acquisition? - Management described the acquisition as typical in size and expressed excitement about the leadership team and market opportunities [48] Question: What is the expected resident count by the end of Q3? - Management indicated that they will continue the organic growth trajectory and layer in the impact of recent acquisitions [57]

Industry Overview - The retail pharmacy industry in China is experiencing a significant downturn, with an estimated 39,000 pharmacies expected to close in 2024, averaging 107 closures per day, and projections suggesting that closures may exceed 100,000 by 2025 [1][3] - The number of pharmacies surged from 400,000 in 2010 to nearly 700,000 by 2024, but this rapid expansion is now reversing [1][3] Company Performance - Major players in the industry, such as Guoda Pharmacy, have closed over 1,270 stores in 2024, reporting a net loss exceeding 1.1 billion yuan [3] - Other companies like Jianzhijia and Yibao Pharmacy have also reported significant losses, with Jianzhijia's profit dropping from 160 million yuan in 2023 to a loss of over 90 million yuan in 2024 [3] - In the first quarter of 2025, several pharmacies, including Yibao Pharmacy and Yifeng Pharmacy, have also announced store closures [3] Market Dynamics - The market is facing structural oversupply, with the average number of customers served per store dropping from 4,112 in 2016 to 2,113 in 2023, indicating a saturation of the market [3][5] - High competition has led to aggressive price wars among pharmacies, with many resorting to loss-leading promotions to attract customers, further straining their financial viability [5] Consumer Behavior - Changing consumer habits, particularly among younger generations, are shifting towards online platforms for purchasing medications, exacerbating the decline in foot traffic to physical stores [7] - The tightening of healthcare insurance policies, including stricter regulations on the use of insurance cards, has further reduced the profitability of pharmacies, particularly those relying on chronic disease medications [8] Regulatory Environment - New regulations requiring pharmacies to implement complex billing processes and maintain compliance with drug traceability have increased operational challenges, particularly for smaller pharmacies [8] - By the end of 2025, all pharmacies must employ licensed pharmacists, adding to the operational costs and compliance pressures faced by the industry [8]

Core Insights - PharmaCorp RX Inc. has completed the acquisition of a 100% interest in a pharmacy business in Western Canada for a purchase price of $2,400,000, marking its fourth pharmacy acquisition [1] - The acquisition is part of PharmaCorp's strategic alliance with PharmaChoice Canada Inc. and aims to support pharmacists in their succession and exit strategies while preserving their legacy of care [2] - PharmaCorp currently operates four PharmaChoice bannered pharmacies and plans to continue acquiring both PharmaChoice and independently owned pharmacies across Canada [3] Company Overview - PharmaCorp operates under the TSX Venture Exchange with the symbol PCRX and is focused on expanding its pharmacy operations through strategic acquisitions [3] - The company emphasizes its commitment to helping pharmacy owners transition their businesses while maintaining community care standards [2]

Company Overview - PharmaCorp Rx Inc. operates three PharmaChoice bannered pharmacies in Canada and plans to acquire more as they become available [2] - The company has a strategic alliance agreement with PharmaChoice Canada to facilitate these acquisitions [2] - PharmaCorp also intends to acquire independently owned non-PharmaChoice Canada bannered pharmacies and operate them under the PharmaChoice Canada banner [2] Recent Developments - PharmaCorp has voluntarily filed an Annual Information Form (AIF) for the year ended December 31, 2024, which is available on its website and SEDAR+ profile [1]

Core Viewpoint - Rite Aid is closing an additional 114 stores as part of its second bankruptcy proceedings in less than two years, driven by mounting debt, sluggish sales, and competition in the pharmacy industry [1][3][4]. Group 1: Bankruptcy and Store Closures - Rite Aid filed for Chapter 11 bankruptcy protection in May 2023, just eight months after exiting its first bankruptcy [2][4]. - The bankruptcy court in New Jersey approved the closure of 114 stores, with the majority located in Pennsylvania [1][2][7]. - The company has already closed 154 stores as part of its store optimization plan, reducing its footprint to approximately 1,245 locations [3][4]. Group 2: Financial Challenges - Rite Aid emerged from its first bankruptcy with $2.5 billion in liabilities, indicating ongoing financial struggles [4]. - The company has faced increased competition from other pharmacy chains such as Walgreens, CVS, Walmart, and Amazon, which has contributed to its financial difficulties [4][6]. Group 3: Industry Context - Industry experts anticipate further closures across the pharmacy sector as companies adjust to market demands and rightsize their operations [6]. - The rapid expansion of pharmacy locations has outpaced the actual need for pharmacies, leading to financial strain on companies like Rite Aid [6].

Capital Restructuring - Walgreens Boots is initiating a multi-currency debt tender as part of its capital restructuring [1] - This follows banks offloading a $45 billion debt package [1] Acquisition Financing - The debt package was used to finance Sycamore's buyout of the Boots pharmacy chain [1]