Chelsea Stellick April 29, 2020 Page | 1

Initiating Coverage April 29, 2020

Chelsea Stellick | chelsea.stellick@iagto.ca | 1.403.705.4982

A Breath of Fresh Air – Initiating Coverage on PTQ with a Buy Rating and $2.40 Target

Event

We are initiating coverage on Protech Home Medical Corp. (PTQ or the Company) with a Buy recommendation and $2.40 target price.

Highlights

Market-leading durable medical equipment (DME) provider wellpositioned to grow via accretive acquisitions. Protech provides in-homemonitoring and disease management services for healthcare patients in theUS by offering a one-stop-shop for a wide range of medical devices andservices through streamlined distribution and telehealth systems. DME is ahighly fragmented market with >6,000 providers in the US, 70% of whichhave annualized revenues below ~$15M. Given its track record ofimmediately accretive acquisitions and its strong M&A team, PTQ is wellpositioned to acquire the smaller competitors in the Midwest and East Coastregions that have stable revenue generation of $4-12M and 5-10% EBITDAmargins.

Ageing demographics support growth. There is a strong and growingdemand for DME due to an ageing population, a patient’s preference to beat home, and the increasing prevalence of chronic diseases requiring long-term care. More specifically, the DME market is expected to grow at an~5.6% CAGR before reaching US$98.4B by C2028E, up from US$54.9B inC2018. This supports management’s target of 3-5% organic growth per year.However, PTQ believes that it can grow at 6-10% by including strategicacquisitions and additional product lines within its existing markets.

Three-pronged growth strategy. PTQ remains focused on generatingoperational net profit, positive cash flow, and positive EBITDA by leveragingits business model to achieve better scale through consolidated distributionchannels. In summary, PTQ has outlined a three-pronged approach towardsits goal of achieving over $200M in revenue and 20-25% EBITDA margins inthree to five years: (i) increasing its DME market share at a rate in excess ofthe market’s organic growth rate, (ii) the utilization of technology to drivefurther margin expansion, and (iii) acquiring targeted DME companies ingeographies that will allow PTQ to further penetrate established markets.

Valuation & Bottom Line We are initiating coverage on PTQ with a target price of $2.40 and a Buy rating. PTQ trades at a significant discount to its peers (~5.0x vs. ~11.0x F2020E EV/Adj. EBITDA), which we believe is unwarranted given its strong track record of successfully improving profitability, its robust recurring revenue model, and its aggressive growth strategy to achieve over $200M in revenue and a 25% EBITDA margin in three to five years. As such, we apply an 11.0x multiple on our F2020 Adj. EBITDA forecasts.

Rating: (unc (New))

Target Price: (unc (New))

Ticker:

Market Data

Target return (incl. dist.): 179.1%

Dividend/yield: $0.00 / 0.0%

Shares outstanding (M): 83.7

Market capitalization ($M):

Enterprise value ($M):

52-week range ($): 0.47 - 1.19

Fiscal year end:

CAD

Forecast summary F19A F20E F21E F22E

81.0 97.0 107.2 117.9

Previous n/a n/a n/a

14.8 19.1 20.4 22.4

Previous n/a n/a n/a

(0.08) 0.00 0.10 0.15

Previous n/a n/a n/a

Key trading multiples F19A F20E F21E F22E

1.0x 1.0x 0.9x 0.8x6.3x 4.9x 4.6x 4.2x

Q1 Q2 Q3 Q4 YE

Revenue ($M)

F2019 20.5 20.8 20.2 19.5 81.0

F2020 22.8 24.0 25.1 25.1 97.0

F2021 25.5 26.4 27.6 27.6 107.2

F2022 28.1 29.1 30.3 30.4 117.9

Adj. EBITDA ($M)

F2019 3.7 3.8 3.8 3.5 14.8

F2020 4.4 5.2 4.8 4.8 19.1

F2021 4.9 5.0 5.2 5.2 20.4

F2022 5.3 5.5 5.8 5.8 22.4

EPS fd ($)

F2019 0.00 (0.01) (0.14) 0.07 (0.08)

F2020 (0.02) 0.00 0.01 0.01 0.00

F2021 0.02 0.02 0.03 0.03 0.10

F2022 0.03 0.04 0.04 0.04 0.15

Company Profile

BUY

$2.40

Last Price: $0.86

PTQ-V

72

93

Sep. 30, 2019

Average weekly volume: 179,900

Currency (unless otherwise indicated):

Protech Home Medical is a market-leading healthcare

services company that aims to improve the home

management of chronic illness by providing a diverse

offering of home durable medical equipment (DME) and

services to patients in the US.

Revenue ($M)

Adj. EBITDA ($M)

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shaded values above are iAS forecasts

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Protech Home Medical Corp. (PTQ-V)

Healthcare

Protech Home Medical Corp.

Chelsea Stellick April 29, 2020 Page | 2

Executive Summary

Company Overview

Protech Home Medical Corp. provides in-home medical equipment and services for patients with chronic illness in the US, including streamlined distribution and telehealth systems. The Company operates in 42 locations across 10 states in the Midwest and East Coast regions, servicing more than 80,000 active patient customers with inventory over 250,000 pieces of medical equipment each year.

Products

PTQ’s core product offerings are segmented into two categories: (i) end-to-end respiratory solutions (i.e., nebulizer, oxygen, and ventilators), and (ii) other services (i.e., power mobility, equipment, and sleep apnea machines).

Daily & Ambulatory Aids – A range of aids to assist in daily activities (i.e., eating, dressing, bathing, and walking).

Power Mobility – A wide variety of complex power wheelchair options, plus patient lifts.

End-to-end Respiratory Equipment Rental – From bi-level positive airway pressure (BiPAP) and continuous positive airwaypressure (CPAP) machines, to Oxygen Concentrator and Ventilators, for both adult and pediatric respiratory care.

Oxygen Therapy – Oxygen therapy has been proved to improve the survival and function of chronic obstructive pulmonarydisease (COPD) patients and can also improve sleep and cognitive function and slow the progression of COPD. Oxygentherapy will include access to a team of respiratory therapists that help reduce readmissions from disease statecomplications.

Sleep Apnea & PAP Treatment – Sleep testing system that allows home testing with results mailed to the patient. Patients’physicians can then prescribe an assistive airway device offered by Protech.

Home Ventilation – Ventilation equipment that is either invasive (an endotracheal tube through the mouth or nose, ortracheostomy tube inserted into an incision in the neck) or non-invasive (such as nasal prongs or mask).

PTQ’s product mix is illustrated in Exhibit 1 below (LHS), which highlights that end-to-end respiratory solutions make up a large portion of the Company’s service offerings.

Exhibit 1: Product Mix (LHS) and Payor Mix (RHS)

Source: Protech Home Medical, iA Securities

Revenue Model and Payor Mix

As highlighted in Exhibit 1 (RHS), reimbursements services primarily come from Medicare and other private health insurance companies. The reimbursement rates for services are not in the Company’s control. As health insurers and government entities attempt to control healthcare costs, reimbursement rates have been subject to continual reductions. Consequently, reductions in reimbursement rates can have a material impact on profitability, especially since the extent and timing of any reduction cannot be predicted. While the Company’s costs of operations effectively could increase, the cost increases may not be passed on to customers because reimbursement rates are set without regard to the cost of service. Furthermore, if both government and private health insurance companies seek ways to avoid or delay reimbursement, cash flow and revenues can be greatly impacted. To offset this risk, PTQ has a high, and growing, proportion of recurring revenues (68%).

Protech Home Medical Corp.

Chelsea Stellick April 29, 2020 Page | 3

History

Protech was formed after Viemed Healthcare (VMD-T, Not Rated) was spun off of Patient Home Monitoring (PHM) and became a separate public entity consisting of a 100% interest in both Home Sleep Delivered, LLC and Sleep Management, LLC. The transaction, which was completed on December 21, 2017, separated the businesses into two companies: 1) Patient Home Monitoring, a Durable Medical Equipment company, and 2) Viemed, a provider of equipment and home therapy for various respiratory diseases. In F2018, PHM changed its name to Protech Home Medical Corp. and later that year acquired Coastal Med Tech. Inc (CMT), a respiratory service company in the Northeast US.

Protech currently serves clients across the Eastern Coast and US Midwest, as per Exhibit 2.

Exhibit 2: Protech Locations

Source: Protech Home Medical, iA Securities

Durable Equipment Market

Durable medical equipment (DME) is any reusable device that provides therapeutic benefits to patients at home dealing with a medical condition or illness. Depending on the severity of the condition, a patient may need to use DMEs for a few days, weeks, or the rest of his or her life. DMEs are normally ordered or prescribed by a physician. Examples of DMEs include (i) wheelchairs (manual and electric), (ii) hospital beds, (iii) traction equipment, (iv) canes, crutches and walkers, (v) ventilators and oxygen monitors, (vi) pressure mattresses, (vii) lifts, (ix) nebulizers, (viii) bili blankets, and (x) bili lights. There continues to be strong demand for the DME market, especially due to an ageing population, a patient’s preference to be at home, and the increasing prevalence of chronic diseases requiring long-term care. As such, the DME market is expected to grow at 5.6% CAGR on average before reaching US$98.4B by C2028E, up from US$54.9B in C2018, due to rapidly growing demand for home services.

Exhibit 3: Expenditures of DMEs in the US

Source: Centers for Medicare & Medicaid Services, Office of the Actuary, iA Securities

Protech Home Medical Corp.

Chelsea Stellick April 29, 2020 Page | 4

National Competitive Bidding and Round 2021

The Durable Medical Equipment, Prosthetics, Orthotics, and Supplies (DMEPOS) Competitive Bidding Program was mandated by Congress through the Medicare Prescription Drug, Improvement, and Modernization Act (MMA) of 2003. Under the DMEPOS Competitive Bidding Program, DMEPOS suppliers compete to become Medicare contract suppliers by submitting bids to furnish certain items in competitive bidding areas (CBAs). A CBA is an area where only DMEPOS Competitive Bidding Program contract suppliers may furnish competitively bid lead and non-lead items to beneficiaries (unless there is an exception). CBAs are based on metropolitan statistical areas (designated by the Office of Management and Budget), which include major cities and their surrounding suburban areas. This competitive bid process replaced the fee schedule payment methodology previously used to lower out-of-pocket costs for people with Medicare, as well as save the Medicare program money while making sure patients receive quality items and services. As part of the program, suppliers are required to submit a bid for selected products electronically. Each bid is evaluated based on the supplier’s eligibility, financial stability, and bid price. Contracts are awarded to the Medicare suppliers who offer the best price and who meet the appropriate quality and financial requirements. Contract suppliers must agree to accept assignment on all claims for bid items and will be paid the single payment amount.

The Centers for Medicare and Medicaid Services (CMS) is required by law to recompete contracts under the DMEPOS Competitive Bidding Program at least once every three years. That being said, all DMEPOS Competitive Bidding Program contracts expired on December 31, 2018, which has resulted in a temporary gap in the program until December 31, 2020. During the temporary gap, any Medicare-enrolled DMEPOS supplier may furnish DMEPOS items and services to people with Medicare. In most cases, people with Medicare won’t need to switch suppliers unless they travel or permanently move outside their supplier’s normal service area.

Medicare’s competitive bidding program began in January 2011. The Round 1 2017 contracts and prices were implemented on January 1, 2017, and the Round 2 Recompete and the National Mail-Order (NMO) Recompete contracts and prices were implemented on July 1, 2016. On March 7, 2019, the Centers for Medicare and Medicaid Services (CMS) announced plans to consolidate the CBAs included in the Round 2 Recompete and Round 1 2017 DMEPOS Competitive Bidding Program into a single round of competition named Round 2021 for a total of 130 CBAs. Round 2021 contracts are scheduled to become effective on January 1, 2021 and extend through December 31, 2023. The bid window closed on September 18, 2019. New product categories for Round 2021 include off-the-shelf (OTS) back braces, OTS knee braces, and non-invasive ventilators. The full list of the 16 product categories included in Round 2021 is highlighted in Exhibit 4.

Exhibit 3: DMEPOS Competitive Bidding Program (2021 Round) Product Categories

Source: Centers for Medicare & Medicaid Services, iA Securities

Overall, the expansion of competitive bidding is expected to control the reimbursement rate of DME, which is likely to drive retail sales of several products in this category. The DMEPOS Competitive Bidding Program has also helped set market-based payment rates for ERD Medicare program. As it relates to Protech, the Company believes that the majority of its products will not experience reimbursement cuts, and its diversification and scale will help absorb any impact better than smaller competitors. In addition, CMS’ decision to remove non-invasive ventilators from the competitive bid is positive for Protech.

DMEPOS Competitive Bidding Program

Round 2021

Product Category

Commode Chairs

Continuous Positive Airway Pressure (CPAP) Devices and Respiratory Assist Devices (RADs)

Enteral Nutrition

Hospital Beds

Nebulizers

Negative Pressure Wound Therapy (NPWT) Pumps

Non-Invasive Ventilators On April 9, 2020, the non-invasive ventilators product category was removed from Round 2021 due to the novel COVID-19 pandemic.

Off-The-Shelf Back Braces

Off-The-Shelf Knee Braces

Oxygen and Oxygen Equipment

Patient Lifts and Seat Lifts

Standard Manual Wheelchairs

Standard Power Mobility Devices

Support Surfaces (Groups 1 and 2)

Transcutaneous Electrical Nerve Stimulation (TENS) Devices

Walkers

Protech Home Medical Corp.

Chelsea Stellick April 29, 2020 Page | 5

Protech During the COVID-19 Pandemic

As the number of cases of coronavirus disease (COVID-19) rapidly rises, the US has faced pressure in securing enough ventilators to support those infected. Patients who test positive for COVID-19 are likely to be admitted into the intensive care unit (ICU) for severe hypoxic respiratory failure which requires the use of a mechanical ventilator. The most recent publicly available data (2010) estimated that the US’ acute care hospitals collectively have ~62,000 full-featured ventilators. There are some older models in circulation that provide some basic functioning, adding a further 98,738 ventilators to the US supply1. The American Hospital Association (AHA) has predicted that 4.8M Americans would need hospitalization for COVID-19, of which 1.9M would require admission to an ICU and 960,000 would require mechanical ventilation.2

Protech’s respiratory equipment supply chain remains stable with sufficient inventory during this crisis with confirmation from suppliers that placed and forecasted orders are currently intact. As hospitals are working to clear hospital beds to make room for an influx of COVID-19 patients, there has been an increasing amount of hospital discharges for patients to move from hospitalized care into homecare. Protech has received an increase in enquiries from its referral network as demand for in-home care increases. Protech has also increased inventory purchases to backstop any future supply chain issues and to meet the increasing demand.

PTQ provided a business update on April 13, 2020 noting positive operational developments as demand for home medical equipment has spiked amidst COVID-19. In an effort to free up hospital space, many patients have been discharged from hospital care and placed into home care increasing the demand for durable medical equipment. In conjunction, recovering COVD-19 patients who have been discharged are also utilizing respiratory aids at home. This is a positive indication for F2020 revenues which will more than offset any negative impacts on the sleep business as sleep clinics and other non-essential medical clinics have either closed their doors or reduced access during this time. Furthermore, it is likely that we will see an increase use of the Company’s telemedicine platform with new patient onboarding and home monitoring carried out without any touch points. Remote monitoring and increased adoption of telemedicine also bodes well for the Company’s bottom line as clinical practitioners can service more patients in an efficient, safe and cost-effective manner.

Along with the business update, the Company also announced a US$1.5M cash payment as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act Provider Relief Fund to prevent, prepare for and respond to the pandemic. While a $1.5M cash injection may be modest, it does allow for the Company to further expand their PP&E and service the burgeoning demand for ventilation, oxygen devices and hospital beds that have been more prevalent in the last month.

On April 20, PTQ announced it had secured a US$5.97M loan under the Payroll Protection Program (PPP) of the CARES Act. The funds will be used to maintain the payroll of its >375 employees and is forgivable if PTQ can maintain its current level of payroll. We believe this will bode very well for the Company as prior to the loan PTQ indicated it was in a position to maintain company payroll and have seen some cost savings transitioning its staff towards their telehealth platform.

Strategic Growth Initiatives

Organic Growth – Base Business Supports the Ageing Demographic

According to research collected by the US Census Bureau, life expectancy in the US is on the rise, with ~10,000 people turning 65 every day for the next 15 years. In conjunction, recent declines in fertility and increased immigration to the US have accelerated the weighting of this age group. With nearly one-quarter of Americans expected to be 65 and older by 2060, the growth in the number of elderly patients in the US healthcare market is creating pressure to provide in-home monitoring and disease management services. As such, healthcare providers, such as hospitals, physicians and pharmacies, are looking for partners that can offer a wide range of products and services that improve the home management of chronic illnesses, reduce hospital readmissions, and help control costs.

1 Society of Critical Care Medicine. U.S. ICU Resource Availability for COVID-19, Version 2. https://www.sccm.org/getattachment/Blog/March-2020/United-States-

Resource-Availability-for-COVID-19/United-States-Resource-Availability-for-COVID-19.pdf?lang=en-US. Accessed March 24, 2020. 2 Fink S. Worst-case estimates for U.S. coronavirus deaths. Published March 13, 2020. https://www.nytimes.com/2020/03/13/us/coronavirus-deaths-estimate.html.

Accessed March 24, 2020.

Protech Home Medical Corp.

Chelsea Stellick April 29, 2020 Page | 6

Protech is addressing age-related issues by delivering a growing number of specialized healthcare products and services in 42 locations across the Midwest and East Coast regions. An ageing population bodes well for Protech because we expect this to translate into significant growth in demand for healthcare services. More specifically, the cost of treating diseases of ageing populations threatens healthcare systems and corporate and government agendas, which is why DME companies like Protech are increasingly being relied on to develop innovative technologies to help ease some of the burden. According to data from the US Census Bureau, most of the states in which Protech currently operates have a population aged 65 and older greater than the national average (15.6%), with Maine (19.4%) being one of the highest in the country. Going forward, we expect Protech to seek new opportunities for home care and capitalize on this growing trend as more members of the large baby boomer cohort reach retirement age.

Exhibit 5 highlights the percentage of the US population over the age of 65 by state with Florida (19.7%) and Maine (19.4%)

having the highest rates.

Exhibit 5: Percentage of US Population Aged 65 and Older by State and Percentage of Disabled Population by State

Source: Age 65 and Older: 2017 US Census, Disability: CDC Disability & Health Data System (DHDS), iA Securities

Older Americans are significantly more likely than the younger population to have a disability, with one in four noninstitutionalized adults reporting a disability.3 According to the CDC-DHDS, in the US, 12.9% of Americans live with a disability related to mobility (serious difficulty walking or climbing stairs) and 11.4% of Americans live with cognitive disabilities (serious difficulty concentrating, remembering or making decisions). Other types of disabilities in the US are related to independent living (7.0%), hearing (5.6%), vision (4.7%), and self-care (3.8%). These disabilities are more prevalent with Americans aged 65 and older (every 2 in 5 adults aged 65+).4

Exhibit 4 highlights that the majority of the states in which PTQ operates also have a large percentage of the population with a disability greater than the national average. This will also likely further increase the demand for DME. The Company is well-positioned to capitalize on the strong demand in the DME market. Protech believes that it can grow the business at more than double the industry growth rate (i.e., 6-10%) through more strategic methods and additional product lines within existing markets. We are forecasting organic revenue growth of ~15% per year. Going forward, this provides Protech with an opportunity to increase market penetration in existing markets for marginal incremental cost either organically or through M&A.

3 Okoro CA, Hollis ND, Cyrus AC, Griffin-Blake S. Prevalence of Disabilities and Health Care Access by Disability Status and Type Among Adults — United States, 2016. MMWR Morb Mortal Wkly Rep 2018;67:882–887. DOI: http://dx.doi.org/10.15585/mmwr.mm6732a3external icon.

4 National Center on Birth Defects and Developmental Disabilities, Centers for Disease Control and Prevention.

StatePercent of

Pop. 65 and Older

Percent of

with Disability (%)State

Percent of

Pop. 65 and Older

Percent of

with Disability (%)

Florida 19.7 28.1 Kentucky 15.6 34.6

Maine 19.4 22.1 North Carolina 15.5 26.8

Puerto Rico 18.9 38.1 New Jersey 15.5 24.6

West Virginia 18.8 39.2 United States 15.2 0

Vermont 18.2 23.7 Kansas 15.1 24.7

Montana 17.6 26.5 Wyoming 15.1 26.3

Delaware 17.6 30.3 Indiana 15 25.5

Pennsylvania 17.4 23.9 Minnesota 15 21.7

Hawaii 17.3 20.2 Oklahoma 15 33.9

New Hampshire 17 23.7 Mississippi 15 33.5

Arizona 16.7 25.8 Nevada 15 26.8

South Carolina 16.7 26.3 Nebraska 15 22.2

Oregon 16.7 25.6 Idaho 15 23.1

Rhode Island 16.5 26.1 Illinois 14.8 21.9

Connecticut 16.4 21.1 Washington 14.7 23.5

Iowa 16.4 23 Virginia 14.6 23.6

Ohio 16.3 26.9 Maryland 14.6 21.5

Michigan 16.3 28.2 North Dakota 14.6 20.3

Arkansas 16.3 35.2 Louisiana 14.5 32.3

New Mexico 16.3 28.6 California 13.6 23

Missouri 16.1 29.1 Colorado 13.4 21

Alabama 16.1 33.2 Georgia 13.1 27.2

Wisconsin 16 22.7 Texas 12 25.6

Massachusetts 15.8 22.9 District of Columbia 11.9 22.9

South Dakota 15.8 23.4 Alaska 10.6 21.9

Tennessee 15.7 29.5 Utah 10.5 23

New York 15.6 22.2

*Grey = Protech Operations in State Average 15.6 25.6

Protech Home Medical Corp.

Chelsea Stellick April 29, 2020 Page | 7

Technology Implementation — Differentiating from Competitors with Telehealth

Telehealth is seen as a solution to help deliver appropriate care to ageing patients while keeping costs under control through better optimization of scarce resources (i.e., physicians, caregivers, emergency rooms etc.) and improved equipment utilization for several chronic conditions. Using telecommunication technologies, it can ease the transition of patients from a medical facility to being treated and monitored at home. Telehealth also helps patients become more informed about their conditions and assumes a more active role in their treatment by helping them record, measure, monitor, and manage their circumstances, and remotely share information, communicate, and collaborate with providers.

Investments to further improve its technology and efforts to grow its distribution volume will help Protech differentiate its services from its competitors. Protech’s telemedicine platform is focused on improving training, accelerating patient onboarding, and significantly reducing onboarding costs. Furthermore, the Company is also planning to adopt a centralized warehousing distribution network whereby five to seven locations will be able to serve larger geographies compared to its current network of over twenty independent warehouses. The purpose is to get distribution costs down to ~10-12% of revenue (currently ~15%). As a result, touchpoints will be streamlined which will significantly reduce transportation time inefficiencies and associated costs related to individual home visits.

Acquisitions – Acquisition Focused Strategy for Growth

Protech’s M&A strategy is geared towards making acquisitions in established markets so that it can easily integrate targets to its platform. Targeted companies offer a favourable product mix and distribution channels that can be consolidated into regionally centralized shipping warehouses, which could result in improved efficiencies, earnings accretion, and favourable equipment pricing for marginal incremental cost. In order to do so, PTQ has been strengthening its M&A team, with management having over 50 years of combined experience in healthcare management and having participated in over $500M in transactions.

Over the years, many smaller DME providers in the US have either been acquired or have closed down operations (40% decline in DME providers over the past five years) because larger suppliers are the only ones who have been able to scale profitably while still offering patients a wide array of services. For instance, many factors may play a role in the selection of products including specific features, aesthetics, quality, availability, service levels, and price. Furthermore, reimbursement pressures are expected to persist in the US, further emphasizing the need for consolidation. As such, the market continues to be highly fragmented with over 6,000 unique DME providers in the US, 70% of which have annualized revenues below ~$15M. Protech has positioned itself to acquire these smaller competitors in the Midwest and East Coast regions that have stable revenue generation of $4-12M and EBITDA margins between 5-10%. These companies are normally too small for private equity firms who are targeting larger companies generating $20-30M in revenue.

Following an acquisition, PTQ implements the following integration strategy:

Consolidates distribution network into regional locations;

Expands product offerings to improve sales;

Decreases COGS by improving purchasing volumes;

Creates efficiencies through back-office integration;

Optimizes billing and collections; and

Rationalizes payroll.

Recent M&A

We believe that PTQ will continue to build its pipeline of qualified acquisition targets and is in active negotiations with companies that, if purchased, would contribute $20M in additional revenue to Protech. Following the closing of the Kentucky-based Cooley Medical, Inc. (Private; CMI) and Acadia Medical, Inc. (Private; AMI) acquisitions, the Company has more than $8M in cash which we believe will be used to finance future acquisitions unless a larger opportunity presents itself and capital needs to be raised.

Protech Home Medical Corp.

Chelsea Stellick April 29, 2020 Page | 8

Exhibit 6: M&A Overview

Source: Protech Home Medical, iA Securities

Overview of Financials In F2019, Protech Home Medical generated revenue of $81.0M and Adj. EBITDA of $14.8M (18% margin). This was a 14% increase from F2018 revenue of $70.5M. Protech increased its margins YoY (15% in F2018 to 18% in F2019) by consolidating distribution centres with existing regional locations, expanding its product offerings, and decreasing its COGs.

Exhibit 7: PTQ Revenue, Adj. EBITDA and Adj. EBITDA Margin (Historical and Forecasts)

Source: Protech Home Medical, iA Securities

We continue to model ~19% Adj. EBITDA margins in F2020 and F2021 as revenue grows at ~8% per annum. Broken down, we see growth in the sale of medical equipment and supplies of about 12% YoY in F2020 and revenue from medical equipment rentals growing about 2% YoY in F2020.

Company Contribution Price Details

1-Jan Resource Medical Group, LLC N/A$653,275 and

13,765,842 non-voting Class A Shares

• Offers an array of DME focused on pulmonary disease services, home-based sleep apnea and chronic obstructive pulmonary disease (COPD)

treatments, as well as home-based healthcare logistics and services

4-Jun Care Medical Partners, LLC~$13M revenue

~$2M adj. EBITDA

$5,476,150

or 2.72x trailing 12-months Adj. EBITDA

• Georgia-based company focused on providing home-based chronic pulmonology services

• Acquired $3.15M in medical equipment placed with patients

28-Jan Black Bear Medical N/A N/A • Provides home-based healthcare services, including mobility solutions, through several retail locations in Maine and New Hampshire

10-Mar West Home Health Care N/A~$11M in cash

and the remainder in shares

• A Virginia-based company focused on providing home-based healthcare services, including mobility solutions for the home

• Immediately increased revenue by more than 10% and adj. EBITDA by more than 5%

29-Jul Legacy Oxygen~$3.5M revenue

~$750K adj. EBITDA

~US$1.65M in cash and

issue 1,708,086 shares

• Regionally focused company offering home-based medical equipment and services for patients with chronic pulmonary conditions

• Cross-selling opportunity of existing services to Kentucky locations

• Expected to increase revenue and EBITDA by more than 5% each before cross-selling opportunities

2-Sep Patient-Aids Inc. ~$17M revenue

~$6.15M adj. EBITDA

~$32M in cash

2,722,987 PHM common shares

• High growth and high margin Ohio-based company focused on providing home-based healthcare services

• 10% increase to annualized revenue, EBITDA margins in excess of 30% and immediately accretive to EPS

31-Aug Coastal Med Tech Inc.~$4M revenue

~$1M adj. EBITDAN/A

• Bolt-on acquisition focused on providing respiratory services to patients in the Northeast market (5 locations in Maine)

• CMT had more than 1,500 patients that were actively renting more than 2,000 pieces of equipment annually

Riverside Medical N/A ~$395K in cash

• Provider of home respiratory services and equipment throughout West Tennessee, Southern Middle Tennessee and Northern Mississippi

• Neighbors PTQ's two largest business units

• Sells (i) power mobility equipment, vehicle lifts, nebulizers, oxygen concentrators, and CPAP and BiPAP units; (ii) traditional and non-traditional

DME respiratory and services; and (iii) non-invasive ventilation equipment, supplies and services

Central Oxygen N/A~$131K

paid off the debt outstanding

• Expands current operations in Indiana and brings additional insurance contracts

• Sells (i) nebulizers, oxygen concentrators, and CPAP and BiPAP units; (ii) traditional and non-traditional durable medical respiratory equipment

and services; and (iii) non-invasive ventilation equipment, supplies and services.

2019 15-Oct Cooley Medical, Inc.~$9M revenue

~$1.6-1.9M adj. EBITDA

~$3.1M in cash

~$0.9M in debt

• Leader and top provider of respiratory services in Eastern and Central Kentucky with six locations

• More than 13,000 active patients to whom it delivers more than 17,000 pieces of rental equipment annually

4-Dec Acadia Medical, Inc.~$4M revenue

~$0.8M adj. EBITDA

~$2.1M in cash

~$0.2M in debt• Leader and top provider of respiratory services in Maine with four locations

Date

2014

2015

2018

31-Oct

(10)

(8)

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Adj. EBITDA Revenue Adjusted EBITDA margin (%)

Protech Home Medical Corp.

Chelsea Stellick April 29, 2020 Page | 9

Valuation & Recommendation

Valuation Summary

We are initiating coverage on PTQ with a target price of $2.40. Our target price is determined by an EV/Adj. EBITDA valuation approach. We are initiating on PTQ with a Buy rating.

EV/Adj. EBITDA Valuation. When looking at a five-year timeframe, PTQ’s EV/Adj. EBITDA trading multiple has declined (see Exhibit 8). More specifically, the five-year, two-year, and one-year multiples are 9.2x, 5.0x and 4.5x, respectively. However, when looking at PTQ’s competitors in Exhibit 9, we notice that the Company is trading at a significant discount on both an EV/Adj. EBITDA and EV/Revenue basis. We believe the discrepancy is unwarranted given management’s strong track record of successfully increasing each acquired businesses’ EBITDA margin, its strong recurring revenue model, and its aggressive growth trajectory to achieve +$200M in revenue and a 25% EBITDA margin in three to five years. As such, we think that Protech should trade closer to its comparables on an EV/Adj. EBITDA multiple basis (currently ~11.0x), which is why we use an 11.0x multiple for our valuation.

Exhibit 8: PTQ EV/Adj. EBITDA Historical Multiple

Source: Refinitiv, iA Securities

Exhibit 9: Comps Table

Source: Protech Home Medical, Refinitiv, iA Securities

Exhibit 10: Valuation and Target Price

Source: iA Securities

Close Mkt Cap Debt+Pref Ent. Value Debt/

Company Ticker ($M) ($M) ($M) 2019A 2020E 2021E EBITDA 20 2019A 2020E 2021E 2019A 2020E 2021E 2019A 2020E 2021E

BIOLASE Inc BIOL-Q 0.44 10 15 25 (10.3) (11.6) (4.9) -1.3x n/a n/a n/a 41 31 43 0.6x 0.8x 0.6xCentric Health Corp CHH-T 0.23 50 70 120 9.3 16.1 21.5 4.4x 7.5x 7.5x 5.6x 126 193 210 1.0x 0.6x 0.6xCRH Medical Corp CRH-T 2.94 210 51 261 39.0 38.9 42.4 1.3x 1.3x 6.7x 6.2x 124 126 134 2.1x 2.1x 1.9xDynatronics Corp DYNT-Q 0.77 10 16 26 n/a n/a n/a 10.6x n/a n/a n/a 62 58 57 0.4x 0.4x 0.5xIntriCon Corp IIN-Q 12.03 100 (28) 72 n/a 6.7 12.2 -4.2x n/a 10.7x 5.9x 112 111 124 0.6x 0.6x 0.6xSavaria Corp SIS-T 11.35 580 38 618 55.9 51.6 63.5 0.7x 0.7x 12.0x 9.7x 375 363 403 1.6x 1.7x 1.5xViemed Healthcare Inc VMD-T 9.40 380 (104) 276 19.7 27.6 31.9 -3.8x n/a 10.0x 8.7x 91 101 117 3.0x 2.7x 2.4x

Totals / Average 1,300 100 1,400 110 130 170 1.1x 0.9x 10.8x 8.2x 930 980 1,090 1.5x 1.4x 1.3x

Protech Home Medical (iAS) PTQ-V 0.86 70 23 93 15 19 20 1.2x 6.3x 4.9x 4.6x 81 97 107 1.2x 1.0x 0.9x

---------- EBITDA ($M) ---------- ----------EV/Revenue---------- ----------EV/EBITDA---------- ----------Revenue ----------

EV/adj. EBITDA Valuation

2020e Adj. EBITDA ($M) 19,116

Multiple 11.0x

Enterprise Value ($M) 210,272

Net cash (debt) end of Q4/F20 ($M) -9,757

Market Cap ($M) 200,516

S/O (end of Q4/F20) 82,860

Target Price $2.42

Target Price (Rounded) $2.40

Protech Home Medical Corp.

Chelsea Stellick April 29, 2020 Page | 10

Exhibit 11: Financial Snapshot

Source: Protech Home Medical, iA Securities

Q1-19 Q2-19 Q3-19 Q4-19 F2019 Q1-20 Q2-20 Q3-20 Q4-20 F2020 F2021 F2022 F2023 F2024

Dec-18 Mar-19 Jun-19 Sep-19 Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 Sep-20 Sep-21 Sep-22 Sep-23 Sep-24

Balance Sheet

in C$ thousands

Current Assets

Cash and cash equivalents 6,249 19,129 4,184 12,855 12,855 8,363 11,939 13,527 17,861 17,861 30,448 50,370 69,773 89,334

Accounts receivable 14,963 17,201 15,942 12,390 12,390 11,778 12,672 13,220 13,100 13,100 14,410 15,851 17,436 19,179

Other 7,935 8,350 7,070 5,538 5,538 7,166 6,761 8,594 7,511 7,511 8,398 9,163 10,121 11,110

Total Current Assets 29,147 44,680 27,196 30,783 30,783 27,307 31,373 35,341 38,471 38,471 53,256 75,383 97,330 119,624

Asset held for distribution - - - - - - - - - - - - - -

Non Current Assets

Property and equipment, net 20,701 19,523 18,976 19,590 19,590 25,280 21,983 19,202 16,839 16,839 10,554 7,446 6,012 5,471

Goodwill 2,803 2,770 2,548 1,881 1,881 5,377 5,377 5,377 5,377 5,377 5,377 5,377 5,377 5,377

Intangible assets, net 3,296 3,076 2,863 2,911 2,911 2,619 2,462 2,305 2,148 2,148 1,519 890 262 -

Total Non Current Assets 26,800 25,369 24,387 24,382 24,382 33,276 29,822 26,884 24,364 24,364 17,450 13,713 11,650 10,848

Total Assets 55,947 70,049 51,583 55,165 55,165 60,583 61,195 62,225 62,835 62,835 70,707 89,096 108,980 130,471

Current Liabilities

Trade payables and accrued liabilities 10,292 11,100 10,181 10,441 10,441 12,881 13,722 14,983 15,473 15,473 16,643 17,915 19,313 20,851

Financial lease payable 7,796 8,843 8,404 8,528 8,528 10,659 9,919 10,364 8,441 8,441 2,620 3,982 5,997 6,304

Other liabilities 659 8,460 552 - - - - - - - - - - -

Total Current Liabilities 18,747 28,403 19,137 18,969 18,969 23,540 23,641 25,347 23,913 23,913 19,263 21,898 25,310 27,155

Liabilities held for distribution - - - - - - - - - - - - - -

Non Current Liabilities

Long-term finance lease obligations 11,527 17,151 6,775 3,081 3,081 5,211 5,063 3,627 4,481 4,481 7,938 9,983 9,376 8,660

Debentures - - 10,039 13,966 13,966 14,696 14,696 14,696 14,696 14,696 14,696 14,696 14,696 14,696

Deferred tax liability - - - - - - - - - - - - - -

Other - - - - - 241 241 241 241 241 241 241 241 241

Total Non Current Liabilities 11,527 17,151 16,814 17,047 17,047 20,148 20,000 18,564 19,418 19,418 22,875 24,920 24,313 23,597

Total Liabilities 30,274 45,554 35,951 36,016 36,016 43,688 43,641 43,911 43,331 43,331 42,138 46,817 49,623 50,752

Shareholders' Equity

Total Shareholders' Equity 25,673 24,495 15,632 19,149 19,149 16,895 17,554 18,314 19,504 19,504 28,569 42,279 59,357 79,719

Total Liabilities & Shareholders' Equity 55,947 70,049 51,583 55,165 55,165 60,583 61,195 62,225 62,835 62,835 70,707 89,096 108,980 130,471

Income Statement

in C$ thousands

Revenue

Sale of medical equipment and supplies 9,300 9,000 8,700 8,300 35,300 9,862 10,633 11,255 11,346 43,097 47,900 52,689 57,958 63,754

Rental of medical equipment / patient monitoring 11,200 11,900 11,500 11,200 45,800 12,907 13,392 13,807 13,761 53,867 59,254 65,179 71,697 78,867

Total Revenue 20,500 20,800 20,200 19,500 81,000 22,769 24,025 25,063 25,108 96,964 107,153 117,869 129,655 142,621

Cost of Revenue 6,200 6,100 6,100 5,100 23,500 6,029 6,361 7,268 7,281 26,940 31,074 34,182 37,600 41,360

Gross Profit 14,300 14,700 14,100 14,400 57,500 16,740 17,663 17,794 17,826 70,024 76,079 83,687 92,055 101,261

Operating Costs 14,400 14,300 23,300 8,200 60,200 17,159 16,677 16,722 16,328 66,887 65,776 68,387 73,077 78,818

Net income from continuing operations before financing expenses, taxes and discontinued operations(100) 400 (9,200) 6,200 (2,700) (419) 986 1,072 1,498 3,137 10,303 15,300 18,979 22,443

Financing expenses 400 760 2,050 410 3,620 604 562 544 524 2,234 1,946 2,129 2,317 2,379

Net income from continuing operations before taxes(500) (360) (11,250) 5,790 (6,320) (1,758) 424 528 974 168 8,357 13,172 16,661 20,064

Recovery for income taxes (60) 160 30 140 270 - 15 18 34 67 293 461 583 702

Net income from continuing operations after taxes and before discontinued operations(440) (520) (11,280) 5,650 (6,590) (1,758) 409 510 940 101 8,065 12,711 16,078 19,362

Discontinued operations 520 60 30 1,150 1,760 - - - - - - - - -

Net income 80 (460) (11,250) 6,800 (4,830) (1,758) 409 510 940 101 8,065 12,711 16,078 19,362

Net income per share

Basic – continuing operations 0.00 (0.01) (0.15) 0.07 (0.08) (0.02) 0.00 0.01 0.01 0.00 0.10 0.15 0.19 0.23

Diluted – continuing operations 0.00 (0.01) (0.14) 0.07 (0) (0.02) 0.00 0.01 0.01 0.00 0.10 0.15 0.19 0.23

Weighted average number of common shares outstanding

Basic 80,853 82,176 83,529 82,860 82,860 83,589 83,589 83,589 83,589 83,589 83,589 83,589 83,589 83,589

Diluted 85,790 87,625 89,093 82,860 82,860 83,589 83,589 83,589 83,589 83,589 83,589 83,589 83,589 83,589

Cash Flow Statement

in C$ thousands

Operating Activities

Net income from continuing operations (386) (591) (12,564) 4,400 (9,141) (1,758) 409 510 940 101 8,065 12,711 16,078 19,362

Adjustments to reconcile net loss

Items not affecting cash 5,200 5,849 6,227 4,007 21,283 6,737 5,542 4,811 4,496 21,586 15,749 12,602 11,235 10,196

Change in Working Capital (2,985) (3,560) 136 1,349 (5,060) (1,269) (1,006) (2,241) 469 (4,047) (6,720) (6,441) (6,724) (6,736)

Cash Flow from Operating Activities 2,471 1,698 (6,201) 10,945 8,913 4,445 4,945 3,080 5,905 18,375 17,094 18,871 20,589 22,822

Investing Activities

Cash Flow from Investing Activities (591) (488) (323) 3,741 2,339 (4,111) (480) (501) (502) (5,595) (2,143) (2,357) (2,593) (2,852)

Financing Activities

Cash Flow from Financing Activities (361) 11,542 (8,032) (8,209) (5,060) (4,979) (888) (991) (1,070) (7,928) (2,364) 3,407 1,407 (409)

Net change in cash and cash equivalents 1,519 12,752 (14,556) 6,477 6,192 (4,645) 3,576 1,588 4,334 4,853 12,588 19,921 19,404 19,561

Effect of exchange rate changes on cash held in foreign currencies399 189 (414) - 174 153 - - - 153 - - - -

Cash, beginning of year 4,331 6,249 19,129 4,159 4,331 12,855 8,363 11,939 13,527 12,855 17,861 30,448 50,370 69,773

Cash and cash equivalents, end of year 6,249 19,129 4,159 12,855 12,855 8,363 11,939 13,527 17,861 17,861 30,448 50,370 69,773 89,334

EBITDA 9,342 4,371 4,920 4,512 4,520 18,324 19,359 21,395 23,635 26,098

Adj. EBITDA 14,801 4,413 5,170 4,762 4,770 19,116 20,359 22,395 24,635 27,098 Adj. EBITDA Margin (%) 18% 19% 22% 19% 19% 20% 19% 19% 19% 19%

Protech Home Medical Corp.

Chelsea Stellick April 29, 2020 Page | 11

Risks to Target Price and Recommendation

Risks to PTQ’s business include:

Risk of reimbursement rates declining. Reimbursement for services, which are outside of Protech’s control, will primarilycome from Medicare and private health insurance companies, with the US government’s Medicare program being theprimary payor. As health insurers and governmental entities attempt to control healthcare costs, reimbursement rates havebeen subject to continual reductions. Consequently, reductions in reimbursement rates can have a material impact onprofitability, especially since the extent and timing of any reduction cannot be predicted. As such, the Company’s costs ofoperations could increase, but the cost increases may not be passed on to customers because reimbursement rates are setwithout regard to the cost of service. Furthermore, if both governmental and private health insurance companies seek waysto avoid or delay reimbursement, cash flow and revenues may be negatively impacted.

Highly competitive market. The Company participates in a highly competitive market where several competitors (incl.private equity) are much larger and better capitalized. Better capitalized competitors may also be able to borrow money orraise debt to purchase equipment more easily than Protech.

Protech Home Medical Corp.

Chelsea Stellick April 29, 2020 Page | 12

Appendix A: Board of Directors & Executive Team

Greg Crawford, Chairman of the Board and CEO

Mr. Crawford has been Chairman of the Board and Chief Executive Officer of Protech Home Medical Corp. since December 2017. From April 2016 to December 2017, he served as Chief Operating Officer and Managing Director of Patient Home Monitoring Corp. Mr. Crawford joined PHM when PHM acquired Patient-Aids, Inc. (Private), of which he was the owner. Mr. Crawford began working at Patient-Aids in 1994, becoming a partner within three years and then Patient-Aids’ sole owner by 2004. During this time, Patient-Aids grew at an annual rate of 25%, and from 2013 to 2015 the Company more than doubled revenue and quadrupled earnings as it acquired, and successfully integrated, several home medical equipment (HME) businesses. Mr. Crawford brings substantial operating, integration, and M&A experience to his role as PHM’s Chief Executive Officer. A hands-on, problem solver, Mr. Crawford has demonstrated significant skill at growing HME businesses both organically and by acquisition.

Mark Greenberg, Director

Mr. Greenberg is the Managing Partner and Founder of Silverstone Capital Advisors. Mr. Greenberg brings 30 years of senior executive operating and transaction expertise and experience to Silverstone. He has been a group and division level senior executive and operating president of units in Fortune 500 companies and a CEO and Chairman of middle market and high growth, venture capital-backed companies, as well as an investment banker and consultant serving middle market, high growth entrepreneurial and financial institution clients nationwide. As a principal investor, advisor and transaction team member, Mr. Greenberg has participated in nearly 150 M&A and capital funding transactions in the last 30 years. These transactions have included multiple hundred-million-dollar operating units of Fortune 1000 companies, middle market companies and high growth venture-funded businesses. Mr. Greenberg maintains an active investment banking and strategic financial consulting practice advising and representing corporations, boards of directors, company stakeholders and shareholders, and financial institutions. He is frequently called upon in engagements to engineer and review deal structures, represent and execute M&A transactions, and develop valuations for businesses contemplating transactions —whether M&A or new share issuance or buy/sell agreement related. Mr. Greenberg speaks and writes frequently on a range of business topics including transaction finance, mergers and acquisitions, business strategy, and economics. His articles appear regularly in business journals and newspapers in the Midwest and nationally. Mr. Greenberg is an honours graduate of Boston University. He serves on several company and non-profit boards. Among these are Galerie, Inc. (Private), TP Mechanical, Inc. (Private), Mailender, Inc. (Private), PHM, Inc., and Rational Foods (Private). Mr. Greenberg is also on the Executive Committee of the Cincinnati ACG Board of Directors.

D. Eugene Ewing, Director

Mr. Ewing has over 30 years of professional experience in a wide range of executive positions and brings a wealth of corporate knowledge across a variety of industry groups. He currently serves as an independent director of Darling Ingredients Inc. (DAR-N, Not Rated), a company focused on creating sustainable food, feed and fuel solutions from organic by-products, where he also serves as Chairman of the Audit Committee and as a member of the Nominating and Governance Committee. He also serves as an independent director of Compass Diversified Holdings (CODI-N, Not Rated), a company that owns and manages controlling interests in a diverse family of established North American middle market businesses, where he also serves as Chairman of the Audit Committee and as a member of the Compensation and Nominating/Corporate Governance Committees. In addition to his public company roles, Mr. Ewing has been the managing member of Deeper Water Consulting, a private wealth and business consulting company, since March 2004. Previously, Mr. Ewing held senior positions at the Fifth Third Bank, ranked 17th in 2018 in total assets for US banks, and was a tax partner at Arthur Andersen LLP for over 15 years in Cincinnati, Ohio. Mr. Ewing is also on the Advisory Board for the Von Allmen School of Accountancy at the University of Kentucky and is also a director of a private trust company located in Wyoming and a private consulting company located in California. As a former partner with what was once one of the US’s largest certified public accounting firms, and with more than 30 years of business planning and transaction experience in a wide variety of industries and circumstances, Mr. Ewing brings to the Protech board significant experience in complex accounting, reporting and taxation matters and SEC filings and corporate merger and acquisition transactions. Mr. Ewing’s financial certifications and education, along with his current and past experiences, make him uniquely qualified to Chair Protech’s Audit Committee.

Protech Home Medical Corp.

Chelsea Stellick April 29, 2020 Page | 13

Hardik Mehta, Chief Financial Officer

Mr. Mehta is an astute finance professional. Prior to PHM, he was an investment banker and finance advisor at investment banking and advisory firm, Silverstone Capital Advisors for nearly ten years. Mr. Mehta has significant acquisition, transaction finance, accounting, and negotiating experience. Mr. Mehta has been an advisor on more than 30 M&A and funding transactions, including buy-side transactions, across various industries and company sizes, where he oversaw the quality of earnings analysis, due diligence, and post-transaction integration planning. Additionally, Mr. Mehta has a deep understanding and has mastered both financial and operational aspects of the HME/DME industry. He has also worked on multiple M&A transactions in the HME/DME space. Mr. Mehta has extensive experience in capital markets and excels in financial planning and analysis. Prior to Silverstone Capital Advisors, Mr. Mehta had founded Neo Magix Creations, a start-up specializing in manufacturing and supplying personalized gifting to corporate and retail customers. He holds an undergraduate degree in engineering and an MBA in finance from the Lindner Graduate School of Business at the University of Cincinnati.

Will Childers, Vice President of Business Development

Mr. Childers has worked in the DME industry since he was 15 years old. He spent his high school summers in the warehouse of his family’s DME company, Care Medical (Private), as a cleaning technician. He continued to work throughout high school and college spending time learning every intricate aspect of the business and industry. Mr. Childers attended the University of Georgia and graduated from Terry College of Business. He then earned his master’s of Public Health with a concentration on Public Health Policy and Management in 2009, also from the University of Georgia. Following the completion of graduate school, he moved to Savannah, Georgia, where he opened a new branch of Care Medical. As the sole employee in the beginning, he quickly grew the branch, which offered DME, respiratory services, retail and complex rehab to patients in both coastal Georgia and South Carolina. He went on to serve in various leadership roles in many departments at both Care Medical and PHM. Currently, Mr. Childers works as Vice President of Business Development. In his current role, he is responsible for overseeing the sales teams for each business unit, recruitment of team members to penetrate new markets, and actively seeking new strategic opportunities for the Company.

Jerry Kirn, Vice President of Operations

Mr. Kirn is an HME veteran with over 20 years of experience in the industry and provides support and training and creates operational efficiencies throughout the Company. Mr. Kirn will also provide day-to-day leadership to all locations. Mr. Kirn has served in many different roles throughout his career, most recently as a partner for a start-up company that grew to over $1M in sales in just under ten months. Prior to that, Mr. Kirn was responsible for the day-to-day operations of a multi-state HME company with revenues exceeding $20M and successfully integrated multiple acquisitions for another large regional company while also implementing operational protocols that contributed to the company’s success as a leading respiratory provider in the Cincinnati market.

Mark Miles, Vice President of Technology

Mr. Miles has been in the DME industry for the past 8+ years, 6 of them working for PHM-owned Care Medical. Mr. Miles started in management at Care Medical before transitioning to PHM to serve as Business Analyst, Senior Network Engineer and now Vice President of Technology. He has experience in leveraging technology to drive organizational growth, performance and profitability. Mr. Miles has been instrumental in orchestrating transformative business strategies through data-driven decisions and has extensive knowledge of the healthcare industry. He is PHM’s engineering principal, responsible for re-engineering and managing the IT infrastructure, establishing vendor relationships with high performing SLA’s and managing the IT needs of PHM’s staff. Mr. Miles has replaced antiquated hardware, software and services while using strong negotiating tactics to leverage high performing process improvement and operational efficiency solutions throughout all PHM brands.

Protech Home Medical Corp.

Chelsea Stellick April 29, 2020 Page | 14

Appendix B: Competitors

BIOLASE Inc. (BIOL-Q, Not Rated). BIOLASE is a medical device company and global market leader in the manufacturing and marketing of proprietary all-tissue dental lasers and soft-tissue dental lasers. The company is thus able to perform a number of minimally invasive dental procedures that are claimed to improve patient outcomes and deliver high-value clinical solutions through laser technology, such as cosmetic, restorative, and surgical applications. To date, BIOLASE has sold over 36,200 laser systems in over 90 countries.

Centric Health Corp. (CHH-T, Not Rated). Centric is a leading provider of pharmacy and other healthcare services to seniors in Canada. First, as one of Canada’s largest institutional pharmacy providers, the company serves 475 clients across Canada through 18 pharmacy and fulfillment locations. Second, as Canada’s largest independent surgical provider, the company provides surgical and diagnostic services and holds one of three private hospital licenses in Ontario.

CRH Medical Corp. (CRH-T, Not Rated). CRH provides innovative services and products for the treatment of gastrointestinal diseases in the US. In 2014, CRH became a full-service gastroenterology anesthesia company that provides anesthesia services for patients undergoing endoscopic procedures in ambulatory surgical centres (ASCs). To date, CRH has completed 23 anesthesia acquisitions. CRH now serves 52 ASCs in 11 states and performs ~333,000 procedures annually. In addition, CRH owns the CRH O’Regan System, a single-use, disposable, hemorrhoid banding technology employed in 48 US states.

Dynatronics Corp. (DYNT-Q, Not Rated). Dynatronics is a leading medical device company that designs, manufactures, and sells a broad range of products for clinical use in physical therapy, rehabilitation, pain management, and athletic training. Dynatronics markets and sells to orthopedists, physical therapists, chiropractors, athletic trainers, sports medicine practitioners, clinics, hospitals, and consumers through its distribution channels.

IntriCon Corp. (IIN-Q, Not Rated). IntriCon engineers, designs, and manufactures miniature hearing healthcare and medical devices that incorporate ultra-low power (ULP) digital signal processing (DSP) and ULP wireless technology. With facilities in the US, Asia and Europe, the company’s advanced products help medical, healthcare and professional communications companies meet the rising demand for smaller, more intelligent, and better-connected devices.

Savaria Corp. (SIS-T, Not Rated). Savaria designs, engineers, and manufactures products to help people gain personal mobility, including a range of accessibility lifts and wheelchair accessible vans. The company also produces elevators for select commercial applications and home use. Savaria operates a sales network of dealers worldwide and direct sales offices in North America, Europe (Switzerland, Germany, Italy, Czech Republic and Poland), United Kingdom, Australia, and China. Savaria employs approximately 1,500 people globally and its plants are located across Canada in Laval and Magog (Québec), Brampton, Beamsville, and Toronto (Ontario), and Surrey (British Columbia), in the US at Greenville (South Carolina), in Huizhou (China), in Milan (Italy), and Newton Abbot Devon (UK).

Viemed Healthcare Inc. (VMD-T, Not Rated). Viemed provides home respiratory service to patients struggling with various respiratory diseases including COPD and various neuromuscular diseases. More specifically, Viemed is the largest independent specialized provider of non-invasive ventilation (NIV) in the US home respiratory healthcare industry. Moreover, it operates through two indirect wholly owned subsidiaries, Sleep Management, LLC and Home Sleep Delivered, LLC. First, Sleep Management, LLC focuses on disease management and improving the quality of life for respiratory patients, providing therapy and counselling to patients in their homes using cutting edge technology. Second, Home Sleep Delivered focuses on providing in-home sleep testing for sleep apnea sufferers.

Protech Home Medical Corp.

Chelsea Stellick April 29, 2020 Page | 15

Investment Recommendation Rating System

Strong Buy: Expected to provide a substantial return over the next 12 months, with a lower level of risk than comparable investments.

Buy: Expected to provide a reasonably positive return over the next 12 months.

Speculative Buy: Expected to provide a positive return over the next 12 months, but with a high level of risk, or based on a future uncertain event.

Hold: Expected to remain in a trading range near the current share price for the next 12 months.

Sell: Expected to deliver a negative return over the next 12 months.

Under Review: Currently available information is inadequate to provide an investment rating.

Tender: Investors should tender their shares to the current offer.

Company Related Disclosures

Issuer Company Ticker Exch. Disclosures

Protech Home Medical Corp. PTQ V -

See legend of Disclosures on next page.

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Protech Home Medical Corp.

Chelsea Stellick April 29, 2020 Page | 16

Analyst Trading Industrial Alliance Securities Inc. permits analysts to own and trade in the securities and or the derivatives of the issuer under their research coverage, subject to the following restrictions. No trades can be executed in anticipation of coverage for a period of 30 days prior to the issuance of the report and 5 days after the dissemination of the report to our clients. For a change in recommendation, no trading is allowed for a period of 24 hours after the dissemination of such information to our clients. A transaction against an analyst’s recommendation can only be executed for a reason unrelated to the outlook of the stock for the issuer and with the prior approval of the Director of Research and the Chief Compliance Officer. Research Dissemination Policy Industrial Alliance Securities Inc. makes its research available in electronic and printed formats and makes every effort to disseminate research simultaneously to all eligible clients. Research is available to our institutional clients via Bloomberg and First Call as well as through our sales representatives via email, fax or regular mail. Electronic versions are distributed in PDF format. Additionally, the research is only intended to be distributed in jurisdictions where Industrial Alliance Securities Inc. is licensed. For Canadian Residents: This report has been approved by Industrial Alliance Securities Inc. which accepts responsibility for this report and its dissemination in Canada. Canadian clients wishing to effect transactions in any such issuer discussed should do so through a qualified salesperson of Industrial Alliance Securities Inc. in their particular jurisdiction. For US Residents: Industrial Alliance Securities Inc. is not a U.S. broker-dealer and therefore is not governed by U.S. laws, rules or regulations applicable to U.S. broker-dealers. Consequently, the persons responsible for the content of this publication are not licensed in the U.S. as research analysts in accordance with applicable rules promulgated by the U.S. self-regulatory organizations. Any U.S. institutional investor wishing to effect trades in any security referred to herein should contact Industrial Alliance Securities Inc. (USA) Inc., a U.S. broker-dealer affiliate of Industrial Alliance Securities Inc. Disclosure Legend 1. Within the last 12 months, Industrial Alliance Securities Inc. has received compensation for investment banking services or has provided

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