BOCA RATON, Fla., June 14, 2017 (GLOBE NEWSWIRE) --
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.
Inspira Financial Inc. (TSX-V:LND) ("Inspira" or the "Company"), a company focused on providing lending, billing and collection
solutions to the highly fragmented U.S. mental health and addiction services market, today announced it has completed its strategic
review of its loan book. Additionally, the Company has established its new management structure with the appointment of several
executives and the resignation of several members of the Board of Directors.
The strategic review of the loan book is complete. The Company has decided to retool its lending criteria by focusing on
offering loans to borrowers who have strategic importance to the Company. Lending to strategic borrowers will increase
gradually. As a result, the Company expects the near term financial effects will be to reduce its current credit receivables
balance, increase its cash on the balance sheet, and reduce revenues associated with lending. Revenues from the billing and
collection business are expected to continue to grow over time.
The Company announced that Mike Olson has been promoted from Chief Financial Officer (CFO) to Chief Executive Officer (CEO) and
Natalia Vakhitova is appointed interim CFO. Additionally, Dave Costine and Marc Lavine have resigned from the Board of Directors
and Brian Chevalier-Jordan was appointed a non-executive Director. Edward Brann will continue in his role as a Director and chair
the Committee for Corporate Strategy, which will work to create strategies to optimize the return on the Company’s large cash
balance.
“This is an important step in our quest to realign this company with the capital markets,” said Edward Brann, Director of
Inspira. “Today I can truly say that we have a new start. All of the officers and directors from a year ago are no longer with the
Company. I want to welcome Brian to the Board as well as Natalia as our interim CFO. I believe this team has the renewed sense of
urgency and focus that I have been working to establish in our new culture. I will be stepping into an investment banker role for
the business and will put my energy toward finding additional ways to increase shareholder value. I think we are in a strong
position. We have a good, albeit small, operation and a growing cash balance. I am optimistic about our current strategy and
believe Mike and his team are the best option to expand on our lending, billing and collection business.”
“I see a high demand market for lending, billing and collection services in the U.S. addiction services industry,” said Mr.
Olson, newly appointed CEO of Inspira. “I want to assure shareholders that we will be completing our audit shortly and I will
remain focused on seeing it complete. Secondly, while it will take several quarters to optimize our technology platform and round
out our implementation team, I am very optimistic about the growth prospects for this business line. While growth is a key goal, we
will also work to ensure we have operational profits in mind as a priority. While this may reduce our ultimate growth rate in the
short run, I believe in the current capital market environment a premium is placed on profits and I plan to ensure we have the
opportunity to earn that premium.”
Mike Olson
Mr. Olson was previously the CFO of a healthcare related startup, a Controller for PCH Treatment Centers and a Controller for a
medical laboratory (which was successfully acquired by LabCorp). He began his finance career at The Walt Disney Company, holds a
degree from Eastern Washington University, a graduate-level certificate from University of Washington and a California CPA
license.
Brian Chevalier-Jordan
Mr. Chevalier-Jordan has more than 20 years of experience in marketing and sales, the majority of which were spent in financial
services. Since obtaining his MBA from UC Berkeley in 2006, Brian has held roles as Cisco, Financial Engines, and Yahoo!. For most
of his career, Brian has focused on new product development and sales enablement.
Natalia Vakhitova
Ms. Vakhitova joined Inspira Financial in the finance department working directly with Mike Olson and the Board. She holds a degree
in accounting from the Engineering Economic Academy in Russia. She has years of finance experience in the addiction treatment
industry.
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 Inspira, Inspira expecting
to reduce its current credit receivables balance, increasing its cash on the balance sheet reducing revenues associated with
lending, and revenues from the billing and collection business continuing to grow over time, are intended to identify
forward-looking information. All statements other than statements of historical fact may be forward-looking information. Such
statements reflect Inspira's current views and intentions with respect to future events, and current information available to
Inspira, and are subject to certain risks, uncertainties and assumptions, including: the success of Inspira's sales and marketing
efforts effectively growing the total client base; Inspira's ability to satisfy and keep existing clients; management execution,
hiring and maintaining qualified staff, and understanding and achieving software improvements within reasonable time frames and
costs; the demand for addiction treatment continuing to increase; the new service line being complimentary to existing Inspira
clients; Inspira being successful in its integration of the billing company; Inspira's clients maintaining revenue regardless of
overall industry demand; the successful recruitment of employee talent in Florida; increasing total clients serviced resulting in a
positive impact on revenue; and Inspira being able to use the scale of multiple clients and a larger operation to reduce costs.
Material factors or assumptions were applied in providing forward-looking information. 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 changes in law, competition,
litigation, the ability to implement business strategies and pursue business opportunities, state of the capital markets, the
availability of funds and resources to pursue operations, dependence on debt markets and interest rates, demand for the lending
products Inspira offers at interest rates higher than at which Inspira can borrow, a novel business model, granting of permits and
licenses in a highly regulated business, difficulty integrating newly acquired businesses (including the billing company), risks of
performance by the target, new technologies, risk of billing irregularities by borrowers, low profit market segments, risks
associated with the declaration and payment of dividends, including the discretion of Inspira's Board of Directors to declare
dividends, as well as general economic, market and business conditions, as well as those risk factors discussed or referred to in
Inspira'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 Inspira 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, Inspira 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 Inspira undertakes no obligation to publicly update or revise any forward-looking information, other than as required
by applicable law. Unless otherwise indicated, all figures are in Canadian dollars.
In addition to the foregoing, further litigation and administrative actions, even if completely without merit, can be
expected to cause Inspira to continue to incur substantial financial expenses to defend its actions. In addition, the litigation
may be expected to draw management resources that would otherwise be used to grow and manage the company, and have the effect of
impairing or slowing the efforts of Inspira to execute on its business plan. Inspira can offer no guidance on whether or how long
such proceedings will continue.
Neither 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.
Inspira Financial Inc. Edward Brann Director 1 (844) 877-7562 IR@inspirafin.com www.inspirafin.ca
