Convalo Health International, Corp. Opens Second Location in the Los Angeles Market; Expands M&A Plan and Updates Pipeline - Seite 2

West Los Angeles Market Acquisitions and New Center Opening

Convalo has an agreement to acquire two companies that have historically referred a combined 15 clients per month for outpatient addiction treatment, with potential revenues of up to $200,000 per month for the new facility. Concurrently, Convalo has executed a lease for a luxury 5,772 square foot facility on the west side of Los Angeles near Venice Beach, Culver City and Santa Monica. The center can also serve the large treatment population in Malibu, California.

This acquisition is similar to the Hollywood Center acquisition in 2014. The center will also operate under the BLVD Treatment Centers (www.blvdtreatment.com) brand name. In June of 2014, the Hollywood Center had revenues of less than $62,000 for the month. As part of the 5-point post acquisition organic revenue growth plan, operational, facility and marketing improvements were made that resulted in combined unaudited revenues for January and February of over $675,000 with operational profit* in excess of $100,000. The center was at 45% capacity for the months of January and February of 2015.

The new west Los Angeles facility is expected to be fully operational by summertime and is expected to generate revenue growth similar to the Hollywood operation with a capacity of up to 100 clients per month.

Under the agreement, Convalo will issue 1,350,000 shares to the owners of the companies, restricted for 24 months and $250,000 in cash. The active shareholders of the companies will join BLVD Centers. The closing of the acquisitions are subject to TSX approval.

Audited Financials on SEDAR

Convalo also released audited Financial Statements on SEDAR for the full year-ended November 30, 2014. As a result of the recent listing on the TSX Venture, the company was required to provide Audited Financial results for the full fiscal year ending November 30, 2014. For the period of the audit, Convalo operated one center in Hollywood under the brand BLVD Treatment Centers (www.blvdcenters.com), launching the full 100 client capacity center on November 1, 2014. Through the listing process, Convalo had already provided audited Financial Statements for the first three quarters of FY2014 of limited, pre-acquisition operations.