NEW INSPIRA ARTICLE!!!!TORONTO, ONTARIO--(Marketwired - June 26, 2015) -
NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES AND DOES NOT CONSTITUTE AN OFFER OF THE SECURITIES DESCRIBED HEREIN.
Chrysalis Capital IX Corporation (TSX VENTURE:NYN.P) ("Chrysalis IX"), a "capital pool company" pursuant to the policies of the TSX Venture Exchange (the "TSXV") announces the execution of an amalgamation agreement dated June 24, 2015 (the "Amalgamation Agreement") between Chrysalis IX, Inspira Financial Inc. ("Inspira") and a wholly owned subsidiary of Chrysalis IX in connection with its proposed Qualifying Transaction with Inspira, previously announced on April 29, 2015.
Inspira Financial Inc.
Inspira is focused on rolling up the highly fragmented market of small companies in the emerging, large and growing market for alternative financial services offered to healthcare providers and their patients across the United States. Businesses such as medical bill collection agencies and medical equipment leasing companies offer services and products to alleviate working capital problems being experienced by physician offices in the U.S. driven by cuts in reimbursement and increased patient financial responsibility of a medical bill. Inspira plans to acquire these types of business and increase revenue through cross selling a full range of alternative financial services. As an initial offering, Inspira currently provides revolving lines of credit ("RLOC") to healthcare providers ranging from US$500,000 to US$5,000,000 via its wholly-owned subsidiaries, Healthcare Receivable Lenders, Inc. (www.healthcarerl.com) and Inspira Financial Company (www.inspira-financial.com).
Despite the growth opportunities found in a rapidly aging population and rebounding economy, smaller healthcare providers, defined as those with less than $50 million in annual revenues, face a challenging finance market; traditional banks continue to reduce their risk profiles, term lenders require personal guarantees and first security over all assets, factoring lenders charge 25%+ annual interest and equipment providers have all but eliminated financing programs. By targeting the 800,000+ healthcare providers in the United States, Inspira believes it can generate double-digit returns on government (Medicare/Medicaid) and large healthcare insurance receivables.
Inspira plans to continue adding clients to its RLOC service both through acquisition and cross selling, as well as direct marketing. Post-acquisition, Inspira plans to enhance operational efficiencies through the implementation of proprietary technology, leveraging management's FinTech and operations expertise, in an effort to significantly increase its loan book and reduce client acquisition costs.
One of Inspira's long-term opportunities is to expand its service offering to patient consumer financing, a multibillion dollar market that is virtually untouched by today's lending industry. From a patient's perspective, recent changes to the United States healthcare system, including the Affordable Care Act, has resulted in a more than quadrupling of the out of pocket deductible portion of medical procedures and services due from the patient, putting enormous pressure on the patient's ability to pay and the healthcare provider's ability to collect. Inspira believes the relationships it gains via its RLOC service; combined with proprietary technology built to perfect its security interests will create a distinct advantage to market alternative financial services directly to patients on a very targeted basis.
Filing Statement filed on SEDAR
Chrysalis IX has received conditional approval from the TSXV for the proposed Qualifying Transaction and has filed its Filing Statement on SEDAR (www.sedar.com) pursuant to TSXV requirements in connection with the proposed Qualifying Transaction. The Filing Statement is the disclosure document that outlines the details of the amalgamation, the Concurrent Financing (as such term is defined in the April 29, 2015 news release), information about Chrysalis IX and information about Inspira, and its business, including financial statements of Chrysalis IX and Inspira, and pro forma financial statements. Readers of this release are encouraged to review the information in the Filing Statement.
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