LOS ANGELES, CALIFORNIA--(Marketwired - April 4, 2016) -
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Convalo Health International, Corp. (Convalo) (TSX VENTURE:CXV), a company providing addiction recovery services in the US, announced it has opened an outpatient behavioral health and addiction recovery center (known as an IOP center) in San Diego, California. Located in the heart of Hillcrest, the center boasts over 6,000 square feet of space, which can accommodate more than 60 patients. The center features several client lounges, including a kitchen and several group rooms that offer a comfortable, boutique vibe.
Along with opening the San Diego IOP facility, Convalo is in the process of securing residential, detox and behavioral health facilities that can house up to 18 patients. The population of the San Diego metropolitan area exceeds 3 million, and San Diego is also a desirable location for those seeking treatment away from home. As with all pods, Convalo expects to invest approximately $1,000,000 in the pod during the launch period, which will come from existing cash on the balance sheet. Each mature pod is expected to generate $10 million to $15 million in annual revenue.
"We are pleased to be serving the San Diego community," said Stampp Corbin, CEO of Convalo. "We are investing heavily in local marketing and awareness to launch our center and expect the behavioral health detox facility accompanying the IOP to be signed on shortly. We anticipate being at optimal capacity within a year in San Diego and will continue to update the market of the significant milestones as we open pods across the United States."
Convalo serves the addiction rehabilitation market and is led by seasoned management with experience in US healthcare. In 2014, Convalo made its first acquisition of a small, local addiction rehabilitation center in Los Angeles. That 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 treatment of addictive and co-occurring disorders, essential 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.
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.