BOCA RATON, FLORIDA--(Marketwired - Jan. 17, 2017) -
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Inspira Financial Inc. (TSX VENTURE:LND) ("Inspira"), a company focused on providing financial solutions to the highly fragmented U.S. mental health and addiction services market, today announced the moving of its headquarters from San Francisco, California to Boca Raton, Florida to better serve the addiction market. Inspira also provided shareholders with an update on its new sales and marketing strategy and operational direction, including the successful onboarding of new clients utilizing both lending and billing/collection services.
With the successful integration of the billing company acquisition, Inspira will move its headquarters to Boca Raton, Florida. This particular area of Florida has a large pool of experienced employee talent, often at lower costs than California, which can service new and existing clients on the east coast more easily. Inspira will keep its smaller California location to service clients on the west coast.
"This move is the natural next step for our newly integrated business," said Edward Brann, Executive Director of Inspira. "Not only will we have greater access to employee talent, I think the relocation of our corporate headquarters is an important move for our new integrated sales and marketing strategy. We'll be keeping our California office to attract and service west coast clients but pushing new hires toward our Florida headquarters. I expect our cost structure with the transition from California to Florida to have a long-term positive improvement to our margins."
Sales and Marketing Update - Building on Early Success
Inspira is rolling out its newly integrated solution to the addiction market, which includes both lending and billing. Building upon its larger west coast clients and that ongoing revenue, Inspira has recently started marketing integrated services to mostly smaller-sized clients. This strategy is meant to build an impressive track record with a diversified portfolio of smaller satisfied clients, which will help later marketing efforts focused at large clients and strong revenue growth later in the year.
"Our focus over the coming quarters is building a robust client base, rolling out operational improvements that come with scale, and building software to automate the integrated business platform where possible" said Edward Brann, Executive Director. "The operational leaders will focus on building a track record to show they can meet the intricate business processes needed to scale this business to all types of clients, large and small."
Since closing the acquisition in November and finalizing the integration, Inspira has already executed additional lending and billing contracts with small-sized clients, and has a pipeline of several more clients that it is working to close in the near future.
"We continue to build our pipeline of leads for our integrated services" said Mr. Brian Chevalier-Jordan, VP of Sales and Marketing for Inspira. "This last month we brought on more referral partners. More importantly, we are gratified that we have begun to receive referrals from a client of ours in Texas. Word of mouth referral from satisfied clients is one of the best forms of marketing. We are focused on increasing total clients serviced for the next few quarters, with revenue growth to follow."
Mr. Jordan also stated, "I'm looking forward to the aXis (Addiction Executives Industry Summit) conference in Naples, Florida from January 30 through February 1. We were able to generate strong leads from the previous conference we attended."
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's cost structure with the transition from California to Florida having a long-term positive improvement on its margins, strong revenue growth later in the year as a result of Inspira's new marketing strategy, and Inspira building a robust client base, rolling out operational improvements that come with scale, and building software to automate the integrated business platform, where possible, over the coming quarters, are intended to identify forward-looking information. All figures are in Canadian dollars. 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 continued existence of billing/collection contracts, 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 at a lower cost than in California, execution of office leases at a better value per square foot in Florida as compared with California, Inspira's sales and marketing efforts resulting in more clients, that increasing total clients serviced will result in Inspira's ability to attract larger clients and which will have a significant positive impact on revenue, and sales and marketing effectively growing the total client base, Inspira being able to use the scale of multiple clients and a larger operation to reduce costs, and the ability of Inspira to successfully create, including its ability to retain and employ the necessary talent, the effective software that results in automation. 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.
Inspira's ability to build a robust client base will depend upon success of its sales and marketing efforts, and its ability to satisfy and keep existing clients. Inspira's ability to take advantage of scale and improve software will depend upon management execution, hiring and maintaining qualified staff, and understanding and achieving software improvements within reasonable time frames and costs. 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.
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.
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.
1 (844) 877-7562