Convalo Health International, Corp.
TSX VENTURE : CXV

Convalo Health International, Corp.

October 28, 2015 09:00 ET

Convalo Health International Posts Financial Results Quarter Ending August 31, 2015 on SEDAR

LOS ANGELES, CALIFORNIA--(Marketwired - Oct. 28, 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) (TSX VENTURE:CXV), a company focused on the US addiction rehabilitation market, today has posted its financial results for the quarter ending August 31, 2015 on SEDAR.

Financial Highlights:

  • Total quarterly revenue was $5,674,083, a 145% growth rate quarter-over-quarter, and an annualized growth rate of over 580%.
  • September annualized run rate revenue exceeded $30 million.
  • Net Income before stock based compensation, transaction costs and interest income rose to $870,805 for the quarter.
  • Cash on hand at the end of the quarter was $24,619,607.

"We feel this is a very solid result for a company that was launched only a year ago," said Michael Dalsin, Chairman of Convalo. "This market continues to be underserved and we are in a very strong position, with plenty of cash, no debt and strong operational cash flow to launch into new markets. I expect that we will continue to see strong quarter-over-quarter growth as we open new centers across this country in 2016."

Pursuant to the news release dated September 30, 2015, Convalo confirms that the expiry date of the warrants outstanding, exercisable for 43,125,000 common shares of Convalo at $0.50 per share, has been accelerated to November 17, 2015 (20 calendar days from today (Convalo previously announced an anticipated accelerated expiry date of November 11, 2015)). The warrants were originally issued pursuant to Convalo's bought-deal private placement of 43,125,000 units (with each unit consisting of one common share and one warrant) for gross proceeds of $17.25 million, which closed on April 22, 2015.

About Convalo

Convalo is focused on the US outpatient addiction rehabilitation market led by seasoned management with experience in both US healthcare acquisitions and healthcare service asset management. Through various brands and locations, Convalo 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

Certain statements in this press release about our current and future plans, expectations and intentions, results, levels of activity, performance, goals or achievements or any other future events or developments constitute forward-looking statements. The words "may", "will", "would", "should", "could", "expects", "plans", "intends", "trends", "indications", "anticipates", "believes", "estimates", "predicts", "likely" or "potential" or the negative or other variations of these words or other comparable words or phrases, are intended to identify forward-looking statements. Forward-looking statements are based on information currently available to us and on estimates and assumptions made by us regarding, among other things, general economic conditions and the competitive environment within the behavioral health industry in the United States, in light of our experience and perception of historical trends, current conditions and expected future developments, as well as other factors that we believe are appropriate and reasonable in the circumstances, but there can be no assurance that such estimates and assumptions will prove to be correct. Many factors could cause our actual results, level of activity, performance or achievements or future events or developments to differ materially from those expressed or implied by the forward-looking statements, including, but not limited to, the factors discussed in the "Risks and Uncertainties" section of the Corporation's management's discussion and analysis for Fiscal 2014 (available on SEDAR at www.sedar.com), 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.

These factors are not intended to represent a complete list of the factors that could affect us; however, they should be considered carefully. The purpose of the forward-looking statements is to provide the reader with a description of management's expectations regarding the Corporation's financial performance and may not be appropriate for other purposes; readers should not place undue reliance on forward-looking statements made herein. Furthermore, unless otherwise stated, the forward-looking statements contained in this press release are made as at October 28, 2015 and we have no intention and undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. The forward-looking statements contained in this press release are expressly qualified by this cautionary statement.

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.

Contact Information