The website can be seen at www.blvdir.com
“Changing our name represents a major step in the transformation of this Company,” said Chris Heath, CEO. “The Convalo of the past is in the past. This fiscal year, we have made changes not only to our management and board, but also to our strategy for expanding to serve the unmet demand for addiction treatment services. Our branding in the US is a key element of what makes us attractive to partners in the US. Changing our corporate name in Canada to our trade name in the US is a way to signal our future path to all of our stakeholders – clients, partners, employees and shareholders. We will continue to use the same ticker symbol, CXV, to make trading easy for all of our shareholders. But make no mistake, this is a different company now, with different leadership and a different business model and, perhaps most importantly, an improving balance sheet and financial position.”
The Company has reserved the new name, BLVD Centers Corporation, with British Columbia Registry Services and Articles of Amendment will be filed upon approval of the name change by the TSX Venture Exchange anticipated in the next 10 days.
“I believe one key to our success is sharing information with all shareholders as often as is practicable,” continued Mr. Heath. “This website, which we will work to keep updated, provides access to information that will help our investors stay connected to our business. While I am pleased that our new business model is producing positive financial results since we initiated it, and that our balance sheet is improving, I also understand that investing isn’t always exclusively about raw numbers. I think the real potential for our Company also can be seen through the quality of our centers and people. To that end, I hope our investor website offers a better connection to our business for those investors who can’t visit our sites or meet our partners. The website includes a full virtual tour of all the centers as well as a good amount of information about our marketplace. Additionally, I plan to be in Toronto and Vancouver at the end of June to meet with investors and further detail our new model and future plans.”
Review of Convalo Model:
Convalo is shifting the clinical and operational staff management and hiring at each individual center, as well as the majority of the sales and marketing responsibilities of the clinics, to the local general managers and outreach leaders through an MSA, enabling these leaders to make cost decisions independently. The model allows local operators to keep some of the annual cash flow generated from their operations and aligns incentives between the Company and the operators. These leaders, the majority of whom have already executed an MSA, have been established at the current seven sites, in some cases for as long as two years. Because of the previous “centralized” management model, they were restricted from hiring local staff and managing the center as a “stand alone” or decentralized model. Further, they were not incentivized to use local marketing techniques, which are often a fraction of the cost of national advertising. The previous management team attempted to centralize all aspects of the centers, from staffing and back office to sales and marketing, resulting in expenditure of a tremendous amount of time, energy and money without commensurate rewards in revenue growth.
Under the new model, Convalo will continue to own or lease its existing facilities (depending on the market) and provide branding support, facilities (real estate, furniture, fixtures and equipment) management and upkeep, call center services, clinical protocols, and documentation support to all centers. Convalo will continue to maintain control of these facilities in the event a change in local management is someday needed. For new facilities, Convalo will have the flexibility to decide whether to own or lease, and management will focus upon speed to profitability and return on equity in deciding upon the proper structure.
Convalo will shift corporate ownership costs to the local operational and outreach leaders, incentivizing them like partners instead of employees.
About Convalo
Convalo, operating under the brand name BLVD Centers (www.blvdcenters.com), is a leader in the highly fragmented addiction rehabilitation market. Led by a new 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.
Forward-Looking Statements
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 Company shifting corporate ownership costs to the local operational and outreach leaders, incentivizing them like partners instead of employees, and the Company changing its name, 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: TSX Venture Exchange approval of the name change, insurance reimbursement remains at levels similar to today, census levels and patient demand remains strong, partners operate their locations profitably, partners reimburse the Company for any and all working capital loans, additional corporate overhead is not needed). 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 unless otherwise indicated.
Convalo Health International, Corp.
Chris Heath, Chief Executive Officer
(424) 372-1123
investorinfo@convalohealth.com
www.convalohealth.com
© 2017 GlobeNewswire
