Convalo Health International, Corp.
TSX VENTURE : CXV

March 31, 2015 12:44 ET

Convalo Health International, Corp. Announces Increase of Previously Announced Bought Deal Financing to $15 Million

LOS ANGELES, CALIFORNIA--(Marketwired - March 31, 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.

Convalo Health International, Corp. ("Convalo" or the "Company") (TSX VENTURE:CXV), an acquisition-oriented company focused on rolling up the US addiction rehabilitation market, is pleased to announce that in connection with its previously announced bought deal private placement offering (the "Offering"), it has entered into an amendment agreement with Mackie Research Capital Corporation as lead underwriter and including Beacon Securities Limited (the "Underwriters"), to upsize the Offering from $7,500,000 to $15,000,000. The Underwriters have agreed to purchase, on a bought-deal basis, 37,500,000 units (the "Units") of the Company at a price of $0.40 per Unit, for gross proceeds to the Company of $15,000,000.

Each Unit will consist of one (1) common share (a "Common Share") in the capital of Convalo and one (1) warrant (a "Warrant") of Convalo. Each Warrant entitles the holder thereof to acquire one Common Share for an exercise price of $0.50 per Common Share for a period of 36 months following closing of the Offering (the "Closing"). The expiry date of the Warrants may be accelerated by Convalo at any time following the six-month anniversary of the Closing and prior to the expiry date of the Warrants if the volume-weighted average trading price of the Common Shares is greater than $0.60 for any 20 consecutive trading days.

The Company has granted the Underwriters an option (the "Underwriters' Option") to increase the size of the Offering by up to an additional 15% of the total number of Units to be issued under the Offering, at any time on or before 48 hours prior to the Closing.

The Offering is scheduled to close on or about the week of April 20, 2015 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the TSX Venture Exchange. The securities to be issued under the Offering will have a hold period of four months and one day from the Closing. The net proceeds from the Offering will be used by Convalo for acquisition purposes and general working capital.

About Convalo

Convalo is an acquisition-oriented company focused on rolling up the US outpatient addiction rehabilitation market led by seasoned management with experience in both US healthcare acquisitions and healthcare service asset management. In May 2014, Convalo made its first acquisition of a small, local addiction rehabilitation center in Los Angeles. Since May, the business has operated under the brand name BLVD Centers (www.blvdcenters.com) in a luxury Hollywood, California location. BLVD offers patients access to a wide range of services, including addictive and co-occurring disorders, helpful to the recovery process. In conjunction with the 12-Step approach, BLVD also offers supplemental insurance-reimbursed services catering to a variety of communities: gender specific, creatively-oriented, meditation/mindfulness, trauma and LGBT affirmative.

Forward Looking Statements

Information in this news release that is not current or historical factual information may constitute forward-looking information within the meaning of securities laws. Implicit in this information, particularly in respect of the future outlook of Convalo and anticipated events or results, including the completion of the Offering, are assumptions based on beliefs of Convalo's senior management as well as information currently available to it. While these assumptions were considered reasonable by Convalo at the time of preparation, they may prove to be incorrect. Readers are cautioned that actual results are subject to a number of risks and uncertainties, including the availability of funds and resources to pursue acquisitions, decline of reimbursement rates, dependence on few payors, possible new drug discoveries, a novel business model, dependence on key suppliers, granting of permits and licenses in a highly regulated business, competition, low profit market segments as well as general economic, market and business conditions, and could differ materially from what is currently expected.

Neither 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 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.

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