Medivolve Inc. announced that it has established Medivolve Management Services, LLC in Puerto Rico to serve as a management services organization (the MSO). The MSO has been organized by the Company in accordance with applicable rules governing the practice of medicine in the United States. The Company, through the MSO utilizing the telehealth platform currently in development, intends to coordinate physician/patient interactions, provide medical billing and practice management services, and facilitate access to diagnostic testing and pharmacy services in partnership with qualified health practitioners and in reliance on services provided by Medivolve's wholly owned subsidiaries, Collection Sites and Medivolve Pharmacy.

For this purpose, in late April 2023 the MSO entered into a management service and licensing agreement with a California medical corporation that is qualified to practice medicine in California (the Physician Network). In early May 2023, the Physician Network acquired (the Acquisition) another California professional medical corporation, which is a fully licensed healthcare provider operating out of Brea, California that is duly credentialed with multiple insurance payors. The payor credentials are necessary to facilitate the reimbursement for services rendered through the telehealth platform and the Physician Network which is managed by the MSO.

The USD 400,000 purchase price (payable by way of an initial cash payment of USD 200,000, with two additional tranches of USD 100,000 payable on the 6 and 12-month anniversaries of the closing of the Acquisition) was funded by way of a loan from Collection Sites to the Physician Network. In addition, the Company announces that it has closed all of its remaining COVID-19 testing locations in order to focus its resources on the telehealth platform rollout.