Convalo Health International, Corp. Opens Second Location in the Los Angeles Market; Expands M&A Plan and Updates Pipeline

LOS ANGELES, CALIFORNIA--(Marketwired - March 30, 2015) -

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 focused on rolling up the highly fragmented addiction recovery sector of companies in the US, today announced the Board of Directors has approved the execution of Purchase Agreements to acquire the stock of two companies with a focus on referral-based addiction related services on the west side of Los Angeles.

Expanded M&A Plan

Convalo announced it has expanded its merger and acquisition strategy since listing February 17, 2015 on the TSX Venture exchange. Convalo is now concentrating on four types of acquisition targets in the market:

1. Medical Detox Centers

2. Referral-Based Outpatient Centers

3. Residential Treatment Centers

4. Criminal Justice Oriented Treatment and Education Centers

All acquisition targets are small, locally-owned treatment, medical or education centers offering addiction related services and specializing in a singular service or market. Convalo plans to increase revenues organically through offering a full suite of services in larger, luxury facilities upgraded to the highest level of licensing and certifications on a nationwide basis.

Convalo has hired a staff of 4 M&A professionals and analysts since listing and is actively working to contact and qualify over 1,000 identified targets fitting the target descriptions. There are over 16,000 licensed treatment centers in a highly fragmented market in the United States.

Pipeline

Since February 17, 2015, the active pipeline of potential acquisition targets has grown to:

• 3 companies in advanced discussions with trailing 12-month cash flow in between $1,000,000 and $1,500,000

• 7 additional companies under non-disclosure agreement (NDA)

All potential targets are local companies that range in geography across the US from New York to Florida to California. The companies offer services ranging from treatment services under contract with criminal justice systems to reduce prison overcrowding, to high-luxury treatment centers, to medical detox clinics strictly focused on medical services.