Chrysalis Capital IX Corporation
TSX VENTURE : NYN.P

June 26, 2015 12:49 ET

Chrysalis Capital IX Corporation Enters Into Amalgamation Agreement and Files Filing Statement on SEDAR in Connection with Proposed Qualifying Transaction with Inspira Financial Inc.

TORONTO, ONTARIO--(Marketwired - June 26, 2015) -

NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES AND DOES NOT CONSTITUTE AN OFFER OF THE SECURITIES DESCRIBED HEREIN.

Chrysalis Capital IX Corporation (TSX VENTURE:NYN.P) ("Chrysalis IX"), a "capital pool company" pursuant to the policies of the TSX Venture Exchange (the "TSXV") announces the execution of an amalgamation agreement dated June 24, 2015 (the "Amalgamation Agreement") between Chrysalis IX, Inspira Financial Inc. ("Inspira") and a wholly owned subsidiary of Chrysalis IX in connection with its proposed Qualifying Transaction with Inspira, previously announced on April 29, 2015.

Inspira Financial Inc.

Inspira is focused on rolling up the highly fragmented market of small companies in the emerging, large and growing market for alternative financial services offered to healthcare providers and their patients across the United States. Businesses such as medical bill collection agencies and medical equipment leasing companies offer services and products to alleviate working capital problems being experienced by physician offices in the U.S. driven by cuts in reimbursement and increased patient financial responsibility of a medical bill. Inspira plans to acquire these types of business and increase revenue through cross selling a full range of alternative financial services. As an initial offering, Inspira currently provides revolving lines of credit ("RLOC") to healthcare providers ranging from US$500,000 to US$5,000,000 via its wholly-owned subsidiaries, Healthcare Receivable Lenders, Inc. (www.healthcarerl.com) and Inspira Financial Company (www.inspira-financial.com).

Despite the growth opportunities found in a rapidly aging population and rebounding economy, smaller healthcare providers, defined as those with less than $50 million in annual revenues, face a challenging finance market; traditional banks continue to reduce their risk profiles, term lenders require personal guarantees and first security over all assets, factoring lenders charge 25%+ annual interest and equipment providers have all but eliminated financing programs. By targeting the 800,000+ healthcare providers in the United States, Inspira believes it can generate double-digit returns on government (Medicare/Medicaid) and large healthcare insurance receivables.

Inspira plans to continue adding clients to its RLOC service both through acquisition and cross selling, as well as direct marketing. Post-acquisition, Inspira plans to enhance operational efficiencies through the implementation of proprietary technology, leveraging management's FinTech and operations expertise, in an effort to significantly increase its loan book and reduce client acquisition costs.

One of Inspira's long-term opportunities is to expand its service offering to patient consumer financing, a multibillion dollar market that is virtually untouched by today's lending industry. From a patient's perspective, recent changes to the United States healthcare system, including the Affordable Care Act, has resulted in a more than quadrupling of the out of pocket deductible portion of medical procedures and services due from the patient, putting enormous pressure on the patient's ability to pay and the healthcare provider's ability to collect. Inspira believes the relationships it gains via its RLOC service; combined with proprietary technology built to perfect its security interests will create a distinct advantage to market alternative financial services directly to patients on a very targeted basis.

Filing Statement filed on SEDAR

Chrysalis IX has received conditional approval from the TSXV for the proposed Qualifying Transaction and has filed its Filing Statement on SEDAR (www.sedar.com) pursuant to TSXV requirements in connection with the proposed Qualifying Transaction. The Filing Statement is the disclosure document that outlines the details of the amalgamation, the Concurrent Financing (as such term is defined in the April 29, 2015 news release), information about Chrysalis IX and information about Inspira, and its business, including financial statements of Chrysalis IX and Inspira, and pro forma financial statements. Readers of this release are encouraged to review the information in the Filing Statement.

This news release contains forward-looking statements regarding the proposed Qualifying Transaction and the business of Inspira. The forward-looking statements contained in this news release represent Chrysalis IX's views and expectations as of the date of this news release and should not be relied upon as representing its views and expectations at any subsequent date. Actual developments may differ materially from those contemplated by these forward-looking statements. The forward-looking events and circumstances discussed in this news release, including the completion and approval of the proposed Qualifying Transaction, and the future business prospects of Inspira, may not occur or could differ materially as a result of known and unknown risk factors and uncertainties affecting Chrysalis IX and/or Inspira, including (without limitation) risks regarding market conditions, economic factors, and the equity markets generally. No forward-looking statement can be guaranteed. Forward-looking statements speak only as of the date on which they are made and, except as required by applicable securities laws, Chrysalis IX undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.

Completion of the proposed transaction is subject to a number of conditions, including but not limited to, TSXV acceptance and if applicable pursuant to TSXV requirements, majority of the minority shareholder approval. Where applicable, the transaction cannot close until the required shareholder approval is obtained. There can be no assurance that the transaction will be completed as proposed or at all.

The financial data contained herein is unaudited and may be subject to refinement or modification during the audit process. Investors are cautioned that, except as disclosed in the management information circular or filing statement to be prepared in connection with the transaction, any information release or received with respect to the transaction may not be accurate or complete and should not be relied upon. Trading in the securities of a capital pool company should be considered highly speculative.

The TSXV has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this news release.

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

The securities referred to in this news release have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons absent U.S. registration or an applicable exemption from the U.S. registration requirements. This news release does not constitute an offer for sale of securities for sale, nor a solicitation for offers to buy any securities. Any public offering of securities in the United States must be made by means of a prospectus containing detailed information about the company and management, as well as financial statements.

Contact Information

  • Chrysalis Capital IX Corporation
    Marc Lavine
    1 (877) 272-4073 ext. 2

    Inspira Financial Inc.
    Robert Munro
    1 (844) 877-7562 ext. 3