Convalo Health International, Corp.
TSX VENTURE : CXV

Convalo Health International, Corp.

February 25, 2016 15:34 ET

Convalo Unaware of Any Material Change

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, wishes to confirm that its management is unaware of any material change in Convalo's operations that would account for the recent decrease in its stock price.

In response to inquiries about the claim against the sellers of Hollywood Detox, Convalo experienced the financial impact of the misrepresentations beginning in October 2015 and Convalo believes it would have achieved higher revenues and earnings in the most recent quarter (which were reflected in the unaudited financials posted on SEDAR for the quarter ending November 30, 2015), and in future quarters, in the absence of those misrepresentations. In the action, Convalo will attempt to recover some or all of the consideration paid, including both shares and cash, to the sellers to compensate it for damages suffered. As in all litigation, there are costs involved in prosecuting a case and Convalo cannot predict the outcome of any lawsuit.

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, including the outcome of any litigation with Hollywood Detox. 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.

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