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LOS ANGELES, Jan. 11, 2018 (Marketwired) — BLVD Centers Corporation (“BLVD Centers” or the “Company”) (TSXV:CXV), a leading company in the United States addiction recovery industry, today announced it has undertaken an initiative aimed at treating marijuana dependency, related behavioral disorders, and addiction.
Starting January 1, California joined eight other states in legalizing recreational marijuana. With a recent Gallup poll showing 64% of Americans favoring legalization, the Company believes that ballot initiatives (as in the case of California) or legislative action will lead to further legalization of recreational use. While there is some controversy regarding the nature of addiction involving marijuana, most studies agree that a significant percentage of frequent users are exposed to negative consequences from use of the substance.
BLVD Centers has elected to enter this market with a novel approach to treatment that may have several advantages including higher margins and lower fixed costs than traditional treatment models. BLVD Centers intends to launch this revenue line in the near future and to ensure its competitive advantage BLVD Centers will await the release of further information about the product until after the time of the launch.
As part of the upgrading of the management team for the increased market opportunity, Pablo Mendez has been appointed Interim Chief Financial Officer and VP of Accounting. Mr. Mendez has extensive public company accounting and finance experience.
“As a veteran of this industry, I recognize that this is a once in a lifetime opportunity to capitalize on a massive new emerging market,” said CEO Chris Heath. “I believe treatment for marijuana abuse or dependency is lower cost and more scalable than other treatment methods. With the change in California law, recreational marijuana is legal for approximately 20% of the US population – almost double all of Canada. I believe that legalization will sweep through highly populated areas, and provide a platform for exponential growth in treatment.”
“BLVD Centers expects to take advantage of this major opportunity quickly,” said CEO Chris Heath. “Our large footprint in California gives us a chance to attack this market aggressively, and position BLVD Centers as a leader when other states legalize recreational marijuana. I will provide financial details and revenue expectations around this plan after we launch. As mentioned above, for competitive reasons, we won’t make full details public until after launch. Our already profitable service offering can take advantage of a very fast growing market that should have a lower cost of delivery and less risk. I look forward to revealing this exciting development very soon to our shareholders.”
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 the Company, including: the novel approach to treatment having several advantages including higher margins and lower fixed costs than traditional treatment models, BLVD Centers intending to launch this revenue line in the near future, BLVD Centers expecting to take advantage of this major opportunity quickly, and the new market having a lower cost of delivery and less risk, are intended to identify forward-looking information. All statements other than statements of historical fact may be forward-looking information. Such statements reflect the Company’s current views and intentions with respect to future events, and current information available to the Company, and are subject to certain risks, uncertainties and assumptions. Material factors or assumptions were applied in providing forward-looking information, including: the new market having a lower cost of delivery and less risk; patient demand remains strong; large additional corporate overhead not being needed; favorable state and federal laws. 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, without limitation: changes in law; the ability to implement business strategies and pursue business opportunities; the state of the capital markets; the availability of funds and resources to pursue operations; decline of reimbursement rates; dependence on few payors; possible new drug discoveries; a novel business model; dependence on key suppliers; granting of permits and licenses in a highly regulated business; competition; changes in healthcare regulations or insurance coverage, particularly those relating to mental health or younger citizens; difficulty integrating newly acquired businesses; the time, outcome and cost of any inquiries, audits or litigation with insurance providers, or federal, state or local regulators; low profit market segments; as well as general economic, market and business conditions, as well as those risk factors discussed or referred to in the Company’s annual Management’s Discussion and Analysis for the year ended February 28, 2017, filed with the securities regulatory authorities in certain provinces of Canada and available at www.sedar.com. Should any factor affect the Company 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, the Company 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 the Company undertakes no obligation to publicly update or revise any forward-looking information, other than as required by applicable law. The Company’s results and forward-looking information and calculations may be affected by fluctuations in exchange rates. All figures are in Canadian dollars unless otherwise indicated.
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.
BLVD Centers Corporation
Chief Executive Officer