Agility Health Inc.
TSX VENTURE : AHI

Agility Health Inc.

June 28, 2017 08:09 ET

Agility Health Announces Appointment of New Director to the Board, Issuance of Securities and Amendment of Debenture

GRAND RAPIDS, MICHIGAN--(Marketwired - June 28, 2017) -

Not for distribution to United States Newswire Services or for dissemination in the United States

Agility Health, Inc. (TSX VENTURE:AHI) ("Agility Health" or, the "Company"), a leading provider of rehabilitation services, orthotics and software services, announced today the appointment of Susan Hyatt to the Board of Directors. The appointment is effective June 21, 2017.

Ms. Hyatt is CEO and co-founder of Silver Sherpa Inc., a professional services company delivering crisis management and transition planning for the elderly. Ms. Hyatt is also President and CEO of HYATTDIO Inc., a global strategy company. Ms. Hyatt was instrumental in the start-up of Canada's Electronic Health Records (EHR) efforts. Canada Health Infoway Inc. (CHI) was set up by the Government of Canada as an independent company collaborating with federal, provincial and territorial governments to accelerate and facilitate the implementation of EHRs. Ms. Hyatt held several executive positions at CHI, including Interim President and CEO. In the U.S., she was appointed a founding member of the HIMSS Global Enterprise Task Force studying global EHR initiatives. The work earned Ms. Hyatt and her colleagues the Spirit of HIMSS Award for their contributions to global thought leadership. Ms. Hyatt is a trained physiotherapist, holds an MBA in International Business, and is a member of the Canadian College of Health Service Executives, the International Federation on Ageing and the Healthcare Information and Management Society (US).

"As a corporate strategist and trusted advisor to governments and global technology and healthcare companies, Susan brings added depth to Agility Health's Board," said Pierre G. Gagnon, interim CEO at the Company. "She has held senior executive positions in both public and private sector organizations and her success as a global entrepreneur becomes a great asset to Agility Health. We welcome her to our team."

Agility Health also announced that, pursuant to the previously announced loan agreement (the "Loan Agreement") with MIRM-BC Holdings Ltd. (the "Lender") for a loan of up to USD$4,000,000 (the "Loan"), Agility Health will issue to the Lender 409,800 voting common shares (the "Bonus Shares") in connection with today's closing of the second tranche of the Loan in the amount of USD$1,000,000. Pursuant to the previously announced agreement among the Company, Pierre G. Gagnon, the Company's Interim Chief Executive Officer and Chairman of its Board of Directors, Cross Tang Holdings, Inc., a company controlled by Mr. Gagnon, Kenneth E. Scholten, the Company's President and a director, and Telfer Hanson, President of Medic Holdings Corp. and the Company's Corporate Development Officer, the Company will issue voting common share purchase warrants ("Warrants"), with 843,750 Warrants issued to Cross Tang Holdings Inc. and 125,000 Warrants issued to each of Kenneth Scholten and Telfer Hanson. The Warrants have an exercise price of CAD$0.10, the closing price of the voting common shares on the trading day prior to the closing of the second tranche of the Loan.

The issuance of the Bonus Shares and the Warrants is conditional upon the acceptance of the TSX Venture Exchange (the "Exchange"). The Bonus Shares will be subject a hold period expiring four months and one day after the date of issuance.

The Company also announced that it has entered into an amendment (the "Amendment") to its Unsecured Convertible Debenture Certificate No. 2014-01, dated as of September 12, 2014 (the "Debenture"), with The Bloom Burton Healthcare Structured Lending Fund LP, with the principal outstanding amount of the Debenture being USD$1,250,000. The Amendment extends the maturity date of the Debenture to May 31, 2018 and provides that the conversion price with respect to the Debenture will be CAD$0.15 from and after September 12, 2017. The Amendment is subject to acceptance by the Exchange pursuant to section 4.3(d) of Policy 4.1.

About Agility Health

Through its U.S. subsidiary and principal operating entity, Agility Health, LLC, Agility Health operates a multi-state network of outpatient rehabilitation clinics and provides contracted services to hospitals, nursing homes and other institutional clients, providing care and treatment for orthopedic-related disorders, sports-related injuries, preventative care, rehabilitation of injured workers, and a variety of other injuries and conditions. In addition, Agility Health provides a number of ancillary services related to physical rehabilitation, including practice management software systems and custom orthotics. As of January 1, 2017, Agility Health operates 84 outpatient or onsite rehabilitation locations in 14 states. Agility Health's contract therapy services business provides rehabilitative services to 36 hospitals and inpatient rehabilitation units and 37 nursing homes, long-term care facilities and other service locations in 11 states.

In Canada, Medic Holdings Corp., Agility's primary Canadian subsidiary, operates twelve (12) foot care clinics and manufactures orthotics and prosthetics.

For more information, please visit www.agilityhealth.com.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy or this release.

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