LOS ANGELES, CALIFORNIA–(Marketwired – May 11, 2016) –
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
Convalo Health International, Corp. (Convalo) (TSX VENTURE:CXV), a company in the addiction recovery industry in the US, announced it has secured an additional residential detox facility in Corona, California, in the greater Los Angeles area.
The facility will increase Convalo’s existing detox and residential capacity and is expected to be fully licensed within 120 days. The increase in capacity will allow Convalo to service unmet demand for residential and detox treatment services in the Los Angeles and Orange County areas.
Convalo is currently securing state licensing and improving the property to reflect the BLVD brand. The investment in this facility, which costs about $500k in capital expenditures and expenses, is expected to contribute an additional $3 million to $4 million in annual revenue for the Los Angeles pod beginning in the third fiscal quarter.(1)
“This facility increases our detox and residential treatment capacity in the Los Angeles area,” said Stampp Corbin, CEO of Convalo. “This takes advantage of the unmet demand in the LA market and expands our capacity to offer our highest priced services to patients.”
About Convalo
Convalo Health International, 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 with experience in US healthcare, Convalo is well positioned for continued national expansion by launching pods in cities across the US. 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 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.
(1) Expected revenue contribution of this facility is based upon an 80% occupancy rate at current pricing. Occupancy and pricing rates may change over time.
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, the outcome and cost of any litigation with the sellers of Hollywood Detox, 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.
Edward Brann
Corporate Advisor
(323) 844-1298
investorinfo@convalohealth.com
www.convalohealth.com