Mr. Skip Bourdo reports

NEIGHBOURLY ANNOUNCES STRONG THIRD QUARTER RESULTS

Neighbourly Pharmacy Inc. has released its financial results for the 16-week period ended Dec. 30, 2023.

"Neighbourly's third quarter results reflect the continuing strength of our pharmacy business, thanks to our pharmacies' unwavering focus on delivering exceptional patient care," stated Skip Bourdo, the Company's Chief Executive Officer. "The team continued to deliver on our M&A and growth initiatives, adding another two pharmacies to the Neighbourly family," concluded Mr. Bourdo.

Third Quarter 2024 Highlights

Revenue for the third quarter increased to $284.0 million, up $18.7 million or 7.0% compared to prior year; 69% of the growth was driven by pharmacies acquired in the past 12 months.

Same store sales1 growth of 2.7% was driven by strong prescription and clinical services revenue, up 4.6% and 8.3% respectively; partially offset by softer front store sales, down 4.5% against the strong prior year performance of over the counter cold-and-flu medications.

Adjusted EBITDA2 for the third quarter increased to $31.2 million, up $2.6 million or 9.2% primarily due to the incremental contributions from pharmacies added to the Company's network in the past 12 months.

The Company acquired two pharmacy locations subsequent to the second quarter's earnings release, bringing the pharmacy network to 294 locations across Canada.

Adjusted Earnings per Share3 for the third quarter of $0.19, compared to $0.17 in the third quarter of 2023.

Pro-Forma Revenue3 of $905.9 million and Pro-Forma Adjusted EBITDA3 of $98.0 million.

Neighbourly Privatization Highlights

On January 15, 2024, the Company entered into a definitive agreement (the "Arrangement Agreement"), whereby T.I.D. Acquisition Corp., a newly-formed entity controlled by PCP, would acquire all of the common shares in the capital of the Company, other than those common shares already owned by PCP or its affiliates, at a purchase price of $18.50 per common share, payable in cash plus one contingent value right ("CVR") per common share.

The CVR will entitle the holder to an additional cash payment of $0.61 per CVR if the Company's Pro-Forma Adjusted EBITDA target of $128.0 million for the fiscal year ending March 28, 2026 is achieved.

A circular in respect of the transaction was filed and mailed to all shareholders of record as of January 29, 2024 for a special meeting to be held on March 8, 2024.

The privatization transaction is expected to close by March 15, 2024, subject to shareholder approval and the satisfaction of customary closing conditions.

Dividend

Pursuant to the Arrangement Agreement, the Company will not pay any dividends (including the historical quarterly dividend of $0.045) to its shareholders until the closing of the Privatization transaction.

Third Quarter Financial Results

Neighbourly's unaudited consolidated financial statements and accompanying notes, and Management's Discussion and Analysis for the third quarter 2024 are available on the Company's website at www.neighbourlypharmacy.ca and on SEDAR at www.sedar.com.

About Neighbourly Pharmacy Inc.

Neighbourly is Canada's largest and fastest growing network of community pharmacies. United by their patient first focus and their role as essential and trusted healthcare hubs within their communities, Neighbourly's pharmacies strive to provide accessible healthcare with a personal touch. Since 2015, Neighbourly has expanded its diversified national footprint to include 294 locations, reinforcing the Company's reputation as the industry's acquirer of choice.

We seek Safe Harbor.