LOS ANGELES, CALIFORNIA--(Marketwired - March 6, 2017) -
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Convalo Health International, Corp. ("Convalo" or the "Company") (TSX VENTURE:CXV), a leading company in the United States addiction recovery industry today announced that it has enhanced its senior management team and restructured its leadership on the Board of Directors.
Effective immediately, Chris Heath, who had previously served as Executive Vice President, has been promoted to Chief Executive Officer and has been appointed to the Board of Directors as an Executive Director. Edward John Allera has been promoted to serve as Chairman of the Board of Directors. David Costine will move to a non-Executive Director role, retiring as a manager and day-to-day decision maker for the Company. Several other senior executives and consultants have terminated their services to the Company at the request of the new leadership team.
"I am delighted to start the new fiscal year with new leadership," said Mr. Allera. "Both Chris and I are focused on improving this business quickly. I believe our new team will be able to get Convalo back to the fast growth business it can and should be."
"I am grateful for the opportunity to infuse fresh energy to this business," said Mr. Heath. "I am in a position to make changes and refocus this business on revenue growth and profit generation and I plan to do that quickly. I am finishing a strategic review of the business and plan to share that, along with any other improvements I have made, with the shareholders shortly. Finally, I have honed my team in the last few weeks and reduced corporate overhead in the process. I want to thank the previous team for getting us to where we are today and wish them luck in their future endeavors."
As part of the management change, Convalo expects more options will be available in the employee option pool as certain options will expire within the next 90 days as these options were issued to employees and consultants who are no longer with the Company and the options are well out of the money. The Board today issued 500,000 options to Mr. Heath with a strike price at $0.085, vesting 1/3 each in March 2018, 2019 and 2020 respectively, with a 10-year exercise provision. In addition, a total of 200,000 options have been issued to other employees of Convalo with a strike price at $0.085 with an identical vesting schedule as Mr. Heath's as described above. Convalo plans to update the market soon on the full impact of these management changes to the options issued and outstanding.
Convalo, operating under the brand name BLVD Centers (www.blvdcenters.com), is a leader in the highly fragmented addiction rehabilitation market. Led by a seasoned executive management team, Convalo is well positioned for continued national expansion by launching pods in cities across the United States. A pod consists of a residential, detox, and mental health facility (detox facility) and an intensive outpatient (IOP) facility. Convalo, under the BLVD brand, is focused upon becoming the largest national provider of a range of mental health services, including addictive and co-occurring disorders. In conjunction with the long standing 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.
Certain statements contained in this press release constitute "forward-looking information" as such term is defined in applicable Canadian securities legislation. The words "may", "would", "could", "should", "potential", "will", "seek", "intend", "plan", "anticipate", "believe", "estimate", "expect" and similar expressions as they relate to the Company, the new team getting Convalo back to the fast growth business it can and should be, Convalo quickly making changes and refocusing its business on revenue growth and profit generation, Convalo finishing a strategic review of its business and sharing it, along with any other improvements, with shareholders shortly, are intended to identify forward-looking information. All statements other than statements of historical fact may be forward-looking information. Such statements reflect the Company's current views and intentions with respect to future events, and current information available to the Company, and are subject to certain risks, uncertainties and assumptions. Material factors or assumptions were applied in providing forward-looking information, including: the growing demand for alcohol and drug treatment and the analysis of the current business model. Many factors could cause the actual results, performance or achievements that may be expressed or implied by such forward-looking information to vary from those described herein should one or more of these risks or uncertainties materialize.
These factors include, without limitation, changes in law, the ability to implement business strategies and pursue business opportunities, state of the capital markets, 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, the outcome and cost of any litigation with insurance providers, low profit market segments, as well as general economic, market and business conditions, as well as those risk factors discussed or referred to in Convalo's annual Management's Discussion and Analysis for the year ended February 29, 2016, filed with the securities regulatory authorities in certain provinces of Canada and available at www.sedar.com. Should any factor affect Convalo in an unexpected manner, or should assumptions underlying the forward looking information prove incorrect, the actual results or events may differ materially from the results or events predicted. Any such forward-looking information is expressly qualified in its entirety by this cautionary statement. Moreover, Convalo does not assume responsibility for the accuracy or completeness of such forward-looking information. The forward -looking information included in this press release is made as of the date of this press release and Convalo undertakes no obligation to publicly update or revise any forward-looking information, other than as required by applicable law. Convalo's results and forward-looking information and calculations may be affected by fluctuations in exchange rates. All figures are in Canadian dollars.