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Alternate Health Corp. (Alternate Health) (CSE: AHG, OTC: AHGIF), an international medical cannabis company that uses best in class technology, research, education, production and laboratories to increase the awareness, regulatory compliance, and appropriate usage of cannabinoids in modern medical practices, today announced its results for the first quarter ending March 31, 2017. All dollar references in Canadian dollars unless otherwise noted.

First Quarter 2017 Financial Highlights

— Revenue of $3.9 million compared to Nil in Q1 of last year

— Adjusted EBITDA of $1.4 million compared to Nil in Q1 2016

— Net loss of $0.6 million, up from a loss of $0.1 million in Q1 of last year

— Working capital of $10.5 million, up from $0.5 million at year end 2016

— Total assets of $30.9 million, up $28.6 million from year end 2016

— The company ended the quarter with $11 million in cash on hand and $0.5 million in debt

Revenue for the quarter was driven by strong performance from Alternate Health Labs, a clinical laboratory acquired in January of this year. The net loss of $0.6 million was in part due to $1.6 million of non-recurring, non-cash expense. We raised $11.1 million in new capital during the first quarter and generated $0.2 million cash from operating activities. We also placed $1.0 million in strategic partner investments.

For the first quarter 2017, Net loss per share (Per International Financial Reporting Standards or “IFRS”) was $0.02 and non-IFRS fully diluted earnings per share was a positive $0.03. Adjusted net income was $1.1 million compared to negative $0.1 million for the same period last year.

Note – Alternate Health Corp (“the Company”) was formed in January 2017 from a reverse take-over of a privately held operating company, Alternate Health Inc. (“AHI”). Per the accounting guidance, the Company’s first quarter operating statement ending March 31, 2017 is compared to the first quarter 2016 of AHI. Similarly, the Company’s balance sheet at March 31, 2017 is compared to the December 31, 2016 balance sheet for AHI.

Management Commentary

“We are very pleased with the financial and operational performance during our first active quarter as Alternate Health Corp,” said Dr. Jamison Feramisco, CEO, Alternate Health. “We achieved outstanding financial growth, raised significant new capital and completed several key strategic acquisitions and investments. Adjusted EBITDA for the quarter was $1.4 million and we generated positive operating cash flow.”

“Following a successful financial start with Alternate Health Labs demonstrating sustained growth, we look forward toward making continued progress across our diverse operational divisions including an expanded focus on deploying our CanaCard and VIP-Patient technologies in the United States and Internationally. We have a unique opportunity to drive innovation and corporate revenues by deploying our novel regulatory, compliance, and therapeutic delivery solutions across the medical cannabis ecosystem.”

First Quarter 2017 Operational Highlights

— Alternate Health Corp. successfully listed its shares for trading on the OTC bulletin board under the ticker symbol AHGIF (CNSX:AHG.CN).

— Acquired Alternate Health Labs as a key business unit of Alternate Health Corp., dramatically increased Alternate Health Lab’s monthly sample volume with sample volume in March compared to January of 188%, and expanded clinical testing menu to include blood samples.

— Secured exclusive licensing rights to transdermal and sublingual dissolvable tablets for the delivery of Cannabinoid and other cannabidiol (CBD) products.

— Obtained AMA PRA Category 1 Credit(TM) approval for the first continuing medical education programs on the use of medical marijuana and cannabinoids for physicians.

— Secured access to leading healthcare industry data analytics platform and custom applications for use in the medical cannabis and cannabinoid industry.

First Quarter 2017 Corporate Financial Summary                                                                                                                                                                                                                                          $ in Millions, except per share data                                                                                               Q1 2017       Q1 2016                        Change---------------------------------------------------------------                                                                  -------------------- ------- --------------------     -------                      -------------------- --------------------Revenue                                                                                                                                               $3.9                             $ -                                               $3.9IFRS Net Loss                                                                                                                                         ($0.6)                           ($0.1)                                            ($0.5)IFRS Net Loss Per Share                                                                                                                               ($0.02)                          $0.00                                             ($0.02)EBITDA (1)                                                                                                                                            ($0.4)                           $ -                                               ($0.4)EBITDA Margin                                                                                                                                         (11.0%)                      (   87.4)%                                            76.4 ptsNon-IFRS Adjusted Net Income (Loss) (2)                                                                                                               $1.1                             ($0.1)                                            $1.2Non-IFRS Adjusted Net Income Per Share - Diluted (2)                                                                                     $0.03                            $ -                                               $0.03Adjusted EBITDA (2)                                                                                                                                   $1.4                             $ -                                               $1.4Adjusted EBITDA Margin                                                                                                                                35.3%                            - %                                               35.3 pts
(1)   Adjusted earnings before interest, taxes, depreciation and                         amortization(2)                      A reconciliation of IFRS to non-IFRS adjusted results is included                         in this press release and our Management Discussion and Analysis                         dated May 30, 2017 and available at                         www.sedar.com.

About Alternate Health Corp.

Alternate Health Corp. (CSE:AHG, OTCQB:AHGIF) is an international medical cannabis company that uses best in class technology, research, education, production and laboratories to increase the awareness, regulatory compliance, and appropriate usage of cannabinoids in modern medical practices. The company is strategically positioned in all facets of the medical cannabis value chain through the innovative integration of proprietary technology and know-how, acquisitions and partnerships, deep direct knowledge of and experience with improving patient outcomes, and management expertise. The company is well positioned to reinvest internal operating cash flow in its platform over the long term, thus creating an attractive investment profile for its shareholders. The company is headquartered in the Dallas, Texas, Metroplex and has operations in Los Angeles, San Antonio and Toronto. For more information about Alternate Health Corp., visit www.alternatehealth.ca

Neither the CSE nor its Regulation Services Provider (as that term is defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of this release. Statements included in this announcement, including statements concerning our plans, intentions and expectations, which are not historical in nature are intended to be, and are hereby identified as “forward-looking statements”. Forward-looking statements may be identified by words including “anticipates”, “believes”, “intends”, “estimates”, “expects” and similar expressions. The Company cautions readers that forward-looking statements, including without limitation those relating to the Company’s future operations, business prospects and financing plans, are subject to certain risks and uncertainties that could cause actual results to differ materially from those indicated in the forward looking statements. The Company cautions that the EBITDA and adjusted Net Income figures reported in this new release do not have standardized meaning under IFRS and therefore may not be comparable to similar measures presented by other issuers.

ALTERNATE HEALTH CORP.                                                                              CONDENSED CONSOLIDATED BALANCE SHEETS                                                                                                                                                                                                            March                                              December                                                                                                                        31,2017                                             31, 2016                                                                                                                      (Unaudited)ASSETSCurrent assets:  Cash                                                                                                                        $ 11,026,546                                         $    570,003  Accounts receivable                                                                                                            2,648,541                                                    -  Due to Alternate Health Labs Inc.                                                                                                      -                                              248,540  HST receivable                                                                                                                    24,175                                               24,471  Prepaid expenses and deposits                                                                                 710,644                            44,666                                                                                                           -------------------- ----------                      -------------------- ----------     Total current assets                                                                                                       14,409,906                                              887,680Other assets  Convertible note receivable                                                                                                      665,200                                                    -  Investments                                                                                                                    8,126,423                                                    -  Equipment                                                                                                                      2,776,874                                                7,204  Intangible assets                                                                                                              4,296,301                                            1,001,928  Equipment in process                                                                                                              28,963                                                    -  Deferred income taxes                                                                                         587,220                           431,220                                                                                                           -------------------- ----------                      -------------------- ----------     Total assets                                                                                                             $ 30,890,887                                         $  2,328,032                                                                                                                                                                 LIABILITIES AND SHAREHOLDERS' EQUITYCurrent liabilities:  Accounts payable and accrued liabilities                                                                                    $  2,784,509                                         $    265,088  Income taxes payable                                                                                                             408,719                                                    -  Current portion of deferred revenue                                                                                              115,361                                              167,195  Current portion of leases payable                                                                             586,620                                 -                                                                                                           -------------------- ----------                      -------------------- ----------     Total current liabilities                                                                                                   3,895,209                                              432,283Long-term liabilities:  Development fees payable to related party                                                                     506,528                           538,200                                                                                                           -------------------- ----------                      -------------------- ----------Total liabilities                                                                                                                4,401,737                                              970,483Total shareholders' equity                                                                                   26,489,150                         1,357,549                                                                                                           -------------------- ----------                      -------------------- ----------Total liabilities and shareholders' equity                                                                                    $ 30,890,887                                         $  2,328,032
ALTERNATE HEALTH CORP.                                                                                               CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS                                                                                                                 (Unaudited)                                                                                                                                                                                                                                                                        Three Months Ended March 31,                                                                                                             -------------------------------------------------------------------------------------------------------------------------------                                                                                                                                     2017                                                                      2016                                                                                                             -----------------------------------------------------                     -----------------------------------------------------Revenue                                                                                                                         $  3,870,882                                                              $     43,720                                                                                                                                                                                        Operating expenses  Amortization of equipment                                                                                                           74,103                                                                       616  Amortization of intangibles                                                                                                         48,884                                                                    18,305  Consulting fees                                                                                                                    999,448                                                                     9,764  Interest                                                                                                                            18,328                                                                    16,819  Lab supplies                                                                                                                       582,134                                                                         -  Loan interest                                                                                                                       18,499                                                                         -  Loss (gain) on foreign exchange                                                                                                   (175,306 )                                                                   5,153  Office and general                                                                                                                 150,627                                                                    11,295  Professional fees                                                                                                                  391,388                                                                    15,229  Management fees                                                                                                                    809,763                                                                         -  Rent and occupancy                                                                                                                 229,007                                                                    30,462  Research and development                                                                                                           212,982                                                                         -  Sales and marketing                                                                                                              1,021,804                                                                         -  Salaries and related                                                                                            656,210                              10,043                                                                                                               -------------------- ---------- --------------------                      -------------------- ---------- --------------------                                                                                                                5,037,871                             117,686                                                                                                               -------------------- ---------- --------------------                      -------------------- ---------- --------------------                                                                                                                                                                                        Loss before undernoted items and income taxes                                                                                     (1,166,989 )                                                                 (73,966 )                                                                                                                                                                                        Other comprehensive income                                                                                                           583,009                                                                         -Income taxes                                                                                                       64,298                                   -                                                                                                               -------------------- ---------- --------------------                      -------------------- ---------- --------------------Net income                                                                                                                      $   (648,278 )                                                            $    (73,966 )                                                                                                             ==================== ========== ====================                      ==================== ========== ====================                                                                                                                                                                                        Basic income per common share                                                                                                   $      (0.02 )                                                            $      (0.00 )                                                                                                             ==================== ========== ====================                      ==================== ========== ====================                                                                                                                                                                                        Shares used in per share calculation - basis                                                                   36,516,999                          30,501,250                                                                                                               ==================== ========== ====================                      ==================== ========== ====================
ALTERNATE HEALTH CORP.                                                                                                  CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS                                                                                                                    (Unaudited)                                                                                                                                                                                                                                                                                           Three Months Ended March 31,                                                                                                                       ----------------------------------------------------------------------------------------------------------------------------                                                                                                                                               2017                                                                     2016                                                                                                                       -----------------------------------------------------                     --------------------------------------------------Operating activities:  Net and comprehensive loss                                                                                                              $   (648,278 )                                                            $ (73,966 )       Amortization of equipment                                                                                                                74,103                                                                    616       Amortization of deferred charges                                                                                                         48,884                                                                 18,305     Equity earnings, not generating cash                                                                                                     (583,009 )                                                                    -     Future tax recognition not providing cash                                                                                                (156,000 )                                                                    -     Share based compensation charge not requiring cash                                                                                      1,694,410                                                                      -  Change in non-cash working capital items                                                                                 (205,395 )                                            12,674                                                                                                                         -------------------- ---------- --------------------                      -------------------- ------- --------------------  Cash provided by (used in) operating activities                                                                                              224,715                                                                (42,371 )                                                                                                                                                                                                  Investing activities:  Convertible note receivable                                                                                                                 (665,200 )                                                                    -  Purchase of equipment                                                                                                                        (21,037 )                                                                    -  Equipment in process                                                                                                                         (28,963 )                                                                    -  Purchase of Hightimes Holdings Corp shares                                                                                                  (332,982 )                                                                    -  Internally generated intangible assets                                                                                                       (24,752 )                                                                    -  Cash on acquisition of subsidiary                                                                                           8,226                                -                                                                                                                         -------------------- ---------- --------------------                      -------------------- ------- --------------------  Cash provided by (used in) investing activities                                                                                           (1,064,708 )                                                                    -                                                                                                                                                                                                  Loss before undernoted items and income taxes                                                                                                  416,430                                                                (73,966 )                                                                                                                                                                                                  Financing activities:  Issuance of share capital                                                                                                                 11,125,270                                                                 25,000  Long-term liability                                                                                                                                -                                                                 16,819  Share subscription receivable                                                                                                                      -                                                                 19,000  Warrants exercised                                                                                                                           600,000                                                                      -  Lease payments                                                                                                                              (397,062 )                                                                    -  Development fee payments                                                                                                  (31,672 )                                                 -                                                                                                                         -------------------- ---------- --------------------                      -------------------- ------- --------------------  Cash provided by (used in) financing activities                                                                                           11,296,536                                                                 60,819                                                                                                                                                                                                  Increase (decrease) in cash                                                                                                                 10,456,543                                                                 18,448Cash, beginning of period                                                                                                   570,003                          429,946                                                                                                                         -------------------- ---------- --------------------                      -------------------- ------- --------------------Cash, end of period                                                                                                                       $ 11,026,546                                                              $ 448,394
ALTERNATE HEALTH CORP.                                                                                        RECONCILIATION OF IFRS TO NON-IFRS FINANCIAL MEASURES                                                                                                             (Unaudited)                                                                                                                                                                                                                              ---------------------------------------------------------------------------------------------------Adjusted net income (loss)                                                                                                            First Quarter----------------------------------------------------------------------------------------------------------- -------------------- ---------------------------------------------------------------------------------------------------             (Canadian dollars)                                               2017             2016                 $ Change------------------------------- ------------------------------------------------------ -------------------- -------------------- ------------------------------------ ----------------------------------- --------------------------Net loss - IFRS                                                                                $ (648,278)       $ (73,966)      $            (574,312)----------------------------------------------------------------------------------------------------------- -------------------- ----- --------- -------------------- ----- -------- -------------------- ---- --------------------Adjusted for:                                                                                                                                                                   Non-cash stock based compensation expense                                                                119,758                                   -                                        119,758                                Non-recurring public company listing expenses                                                             57,508                                   -                                         57,508             Non-cash, non-recurring share compensation to partners           1,612,600                -                   1,612,600------------------------------- ------------------------------------------------------ -------------------- -------------------- ------------------------------------ ----------------------------------- --------------------------Adjusted net income (loss)                                                                     $ 1,141,588       $ (73,966)      $            1,215,554----------------------------------------------------------------------------------------------------------- -------------------- ----- --------- -------------------- ----- -------- -------------------- ---- --------------------Weighted average number of outstanding shares used in computing                                 38,054,970       30,501,250                   7,553,720diluted income per share (1)-------------------------------------------------------------------------------------  -------------------- -------------------- --------------  -------------------- -------------  -------------------- ------------------------Adjusted earnings (loss) per share - diluted                                                   $      0.03       $   (0.00)      $                 0.03----------------------------------------------------------------------------------------------------------- -------------------- ----- --------- -------------------- ----- -------- -------------------- ---- --------------------                                                                         ----------------------------------------------------------------------------------------------------------- -------------------- ---------------------------------------------------------------------------------------------------Adjusted EBITDA                                                                                                                       First Quarter----------------------------------------------------------------------------------------------------------- -------------------- ---------------------------------------------------------------------------------------------------             (Canadian dollars)                                               2017             2016                 $ Change------------------------------- ------------------------------------------------------ -------------------- -------------------- ------------------------------------ ----------------------------------- --------------------------Net loss - IFRS                                                                                $ (648,278)       $ (73,966)      $            (574,312)----------------------------------------------------------------------------------------------------------- -------------------- ----- --------- -------------------- ----- -------- -------------------- ---- --------------------Add back (as reflected on AHC consolidated statement ofoperations):                                Depreciation and amortization                                                                            122,987                              18,921                                        104,066                                Interest expense                                                                                          36,827                              16,819                                         20,008             Income tax                                                          64,298                -                      64,298------------------------------- ------------------------------------------------------ -------------------- -------------------- ------------------------------------ ----------------------------------- --------------------------EBITDA                                                                                         $ (424,166)       $ (38,226)      $            (385,940)----------------------------------------------------------------------------------------------------------- -------------------- ----- --------- -------------------- ----- -------- -------------------- ---- --------------------Add back non-cash and non-recurring expenses:                                Non-cash stock based compensation expense                                                                119,758                                   -                                        119,758                                Non-recurring public company listing expenses                                                             57,508                                   -                                         57,508             Non-cash, non-recurring share compensation to partners           1,612,600                -                   1,612,600------------------------------- ------------------------------------------------------ -------------------- -------------------- ------------------------------------ ----------------------------------- --------------------------Adjusted EBITDA                                                                                $ 1,365,700       $ (38,226)      $            1,403,926----------------------------------------------------------------------------------------------------------- -------------------- ----- --------- -------------------- ----- -------- -------------------- ---- --------------------

ALTERNATE HEALTH CORP. NOTES TO RECONCILIATION OF IFRS TO NON-IFRS FINANCIAL MEASURES

USE OF NON-IFRS FINANCIAL INFORMATION

The Company occasionally utilizes financial measures not calculated in accordance with generally accepted accounting principles in Canada (“IFRS”) in order to provide investors with an alternative method for assessing our operating results in a manner that enables investors to more thoroughly evaluate our financial performance. We also believe these Non-IFRS measures provide investors with a more informed baseline for modeling Alternate Health’s future financial performance.

Management uses these Non-IFRS financial measures to make operational and investment decisions, to evaluate the Company’s performance, to forecast and to determine compensation. Further, management utilizes these performance measures for purposes of comparison with its business plan and individual operating budgets and allocation of resources. We believe that our investors should have access to, and that we are obligated to provide, the same set of tools that we use in analyzing our results. These Non-IFRS measures should be considered in addition to results prepared in accordance with IFRS, but should not be considered a substitute for or superior to IFRS results. We have provided definitions below for certain Non-IFRS financial measures, together with an explanation of why management uses these measures and why management believes that these Non-IFRS financial measures are useful to investors. In addition, we have provided tables to reconcile the Non-IFRS financial measures utilized to IFRS financial measures.

Adjusted Non-IFRS Measures

Our Non-IFRS measures adjust IFRS Net income, Net income per share – diluted, and EBITDA for non-cash stock-based compensation expense for employees and partners and fees incurred for listing the Company’s shares on the Over the Counter (“OTC”) market exchange in the United States.

Adjusted EBITDA

Alternate Health uses adjusted EBITDA as a means to assess the overall financial performance of its business without the effects of interest, taxes, depreciation, amortization, non-cash share based compensation and non-recurring expenses associated with listing the Company’s stock on the OTC as these items may distort the analysis of certain business trends and hinder comparative analysis with other healthcare businesses competing in our markets.

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SOURCE: Alternate Health Corp.

For Alternate Health Corp. Graham Buck Graham.Buck@finsbury.com or Alex Kovtun Alex.Kovtun@finsbury.com