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BOCA RATON, Fla., July 03, 2018 (GLOBE NEWSWIRE) -- Inspira Financial Inc. (“Inspira” or the “Company”) (TSXV:LND), today posted its financial statements for the year ended February 28, 2018.

“Our main goal for the past fiscal year, especially toward the tail end of the year, was to collect our outstanding loans,” said Chairman Dr. Jaime Gerber. “Turning these loans to cash creates more opportunities for our shareholders I believe. Our financial statements reflect that decision in a pretty dramatic way, specifically in the account called Provisions for Loss on Credit Receivables. In order to collect the loans, we generally notice the borrower, forcing them to either pay the loan through alternative financing or on a payment plan that may take perhaps over a year to complete. Once the borrower is targeted for repayment, under most circumstances, we provision the loan for loss as required by accounting policy. However, this does not necessarily mean the cash won’t be collected – it is simply an accounting standard. In fact, since the end of the audit, where we provisioned for loss a total of $6,486,857 – a huge portion of the loss for the year, we have collected $1,290,978 of principal, interest, and fees for those loans so far just during the period of March 1st through June 30th of 2018.”

“We are working to collect additional principal, interest and fees from loans we have provisioned for loss as we have the most senior security on the borrower’s assets,” continued Dr. Gerber. “Of the total principal amount outstanding, today we deem $138,478 as uncollectible. As for the rest of the balance, we are working to collect the loans. It is difficult to predict how much we will collect or the cost of collections. We will keep shareholders up to date as each quarter passes.”

Management’s current categorization of its total outstanding credit receivables, as of February 28, 2017:

Fiscal 2018 AmountsPercent 
Credit receivable, gross$  8,340,885 
Paid   1,248,66014.97%
Current on invoices   2,429,00129.12%
Late payors   3,382,01940.55%
Legal action taken   1,142,72713.70%
No further collection action   138,4781.66%

“We remain focused on selling the billing business and finding a transaction to leverage our cash on hand, as well as the cash we may collect on the loan book,” continued Dr. Gerber. “We will focus on turning our loan book to cash and completing a transaction and our goal is to sell the business focused on billing and collections for mental health companies. Some months ago, we engaged in a divesture process for that business. We identified several potential acquirers. I am working now with the highest bidder on negotiating final deal terms.”

“We also have cash on hand and our monthly expenses, in the event we are able to divest the billing company for cash, is expected to be very low,” finished Dr. Gerber. “We would then be able to use the cash from the sale of the billing company, plus our cash on hand, plus the cash collected from the loan book, as a basis for a deal that is attractive to the Canadian markets.”

The Company’s financial statements for the years ended February 28, 2018 and 2017 and accompanying Management's Discussion & Analysis (MD&A) have been filed on SEDAR and are available at www.sedar.com.

While the Company continues to consider its alternatives, and negotiate with potential purchasers of the billing company, there can be no assurance that one or more viable transactions will result or successfully conclude in a timely manner, or at all. Additional information will be released by the Company as it occurs. There can be no assurances that a transaction will be undertaken or what the terms or timing of such transaction, including an acquisition for the billing or loan divisions, will be acceptable to the Company or its shareholders.

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 the Company, including: the Company completing one or more transactions, including the sale of its billing company; the success and timing of collecting defaulting loans, including the Company collecting additional principal, interest and fees for loans that have been provisioned; monthly expenses being very low in the event the billing company is divested for cash; and the Company completing a transaction with either of its two divisions, 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. 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: identification of partners to complete a transaction; successfully negotiating a definitive agreement with a party to a transaction; the conditions to a transaction being satisfied or waived; applicable board, shareholder, stock exchange, court and regulatory approval of any proposed transaction; changes in law; competition; 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 the Company offers at interest rates higher than at which the Company 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); new technologies; risk of billing irregularities by borrowers; low profit market segments; general economic, market and business conditions; as well as those risk factors discussed or referred to in the Company's disclosure documents 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. For the basis of presentation, all figures use a February 28, 2018 exchange rate of 1.28355, except for the amount collected from March 1, 2018 to June 30, 2018 which is based on the exchange rate on June 30, 2018 of 1.31961.

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.
David Forstadt
CEO/Director
1 (844) 877-7562
IR@inspirafin.com 
www.inspirafin.com