Convalo Health International, Corp.
TSX VENTURE : CXV

Convalo Health International, Corp.

February 25, 2016 09:00 ET

Convalo Health International Revises Corporate Governance; Appoints New Chairman and Independent Board Member

LOS ANGELES, CALIFORNIA--(Marketwired - Feb. 25, 2016) -

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 servicing the US addiction rehabilitation market, announced it has revised the corporate governance structure of the Board of Directors and management. Convalo also provides an update regarding status of a past acquisition.

Convalo has appointed David Costine to be non-executive Chairman of the Board of Directors and Edward Allera as a non-executive member of the Board of Directors. Both have extensive experience with companies operating in the US healthcare market. Convalo will have a Board of Directors compromised of three independent directors.

Michael Dalsin and Roger Greene will no longer have a role in corporate governance and will leave the board to focus exclusively on an advisory role, continuing to work with the senior management team on revenue expansion and profit growth.

These changes will take effect March 1, 2016.

David Costine

Mr. Costine was previously the managing general partner of Corporate Venture Partners LP, an institutional investment fund he founded. Investors included the New York State Teachers Pension Fund, New York State Employees Pension Fund, Chase Manhattan Bank, Niagara Mohawk Power Corp., Corning Inc. and Cornell University. Previous to his funds management experience, Mr. Costine was an investment banker with Newcourt Securities, the US division of Rothschild, Inc. He has served as an executive and on the boards of many early state companies, four of which became public on US senior exchanges, including the NASDAQ and NYSE. He is currently on the board of trustees of the Cornell University Foundation. He has an engineering degree from Cornell and a MBA from Harvard Business School.

Edward Allera

Mr. Allera is a shareholder and a former managing partner of the Washington, D.C. office for Buchanan Ingersoll & Rooney PC. As a senior partner at BI&R, Mr. Allera and his team have worked successfully with companies dealing with the Centers for Medicare and Medicaid Services, the Office of the Inspector General of the Department of Health and Human Services, the U.S. Congress, Presidential Administrations and numerous state officials. Previous to private practice, he was the former associate chief counsel at the Food & Drug (FDA) Administration. He has a degree in Pharmacy from West Virginia University and a law degree from Georgetown University Law Center.

Update on Past Acquisition

In June 2015, Convalo announced the acquisition of Hollywood Detox Center. Convalo has come to believe that certain representations and warranties made in connection with the sale of Hollywood Detox were inaccurate or false. Convalo plans to pursue claims against the responsible parties.

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. In May 2014, Convalo made its first acquisition of a small, local addiction rehabilitation center in Los Angeles. Since August 2014, 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.

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 of this release.

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, 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 operations, 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, difficulty integrating newly acquired businesses, low profit market segments as well as general economic, market and business conditions, and could differ materially from what is currently expected. These financial measures are intended to provide additional information to investors concerning Convalo's performance including the outcome of any litigation with Hollywood Detox.

Contact Information