Neighbourly Announces Agreement To Acquire Rubicon Pharmacies, Growing Both Locations And Revenues By Approximately 60%

Neighbourly Pharmacy Inc. (TSX: NBLY) (“Neighbourly” or the “Company”), Canada’s largest and fastest growing network of independent pharmacies, announced today that the Company has entered into a definitive agreement (the “Purchase Agreement”) to acquire all of the issued and outstanding shares in the capital of the entity that owns and operates, directly or indirectly through its subsidiaries, the network of retail pharmacies known as Rubicon Pharmacies (“Rubicon” or “Rubicon Pharmacies”), for a total cash consideration of $435 million (the “Purchase Price”), subject to customary post-closing adjustments and ROFRs (as defined below) (the “Acquisition”). The Acquisition is expected to increase Neighbourly’s Pro Forma Revenues1 by approximately 62% and Pro Forma Adjusted EBITDA2 by approximately 70% and be mid-teens accretive3 to Earnings per Share based on FY20234 full year contribution.