Mr. Dennis Wilson reports

CONVALO HEALTH INTERNATIONAL, CORP. CLOSES $17.25 MILLION BOUGHT DEAL FINANCING

Convalo Health International Corp. has closed its previously announced bought-deal private placement offering. Mackie Research Capital Corp. was lead underwriter and sole bookrunner on behalf of a syndicate of underwriters including Beacon Securities Ltd., whereby the underwriters purchased 43,125,000 units of the company at a price of 40 cents per unit, for gross proceeds to the company of $17.25-million, which included the full exercise of the overallotment option of 5,625,000 units.

The securities issued under the offering are subject to a hold period, which will expire four months and one day from the date of closing, being Aug. 23, 2015. The net proceeds from the offering will be used by Convalo for acquisition purposes and general working capital.

In consideration for their services, the underwriters received a cash commission of 5.0 per cent of the gross proceeds of the offering, and have received such number of compensation options exercisable into units, as is equal to 5.0 per cent of the units issued in the offering.

We seek Safe Harbor.