Veltex Corporation Shareholder Update

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May 25, 2023, 14:32 ET

CHICAGO, May 25, 2023 /PRNewswire/ -- Veltex Corporation ( OTCQB:VLXC) ("Veltex"), a Health and Wellness Acquisition Firm, and its wholly owned subsidiary Veltex Medical, Inc. d/b/a Veltex Recovery Group ("VRG"), is pleased to report progress at its Mount Hope, West Virginia Campus.

VRG has engaged Ms. Patricia A. Kelly as its Chief Administrative Officer for the Mount Hope Campus. Ms. Kelly has twenty (20) years of experience in the field of substance use disorder management and makes a sterling addition to the VRG team. Ms. Kelly will be responsible for staff oversight, cost control, day-to-day operations, coordination of client care, and ultimate compliance with all processes and procedures for efficient, effective management of the Mount Hope Campus.

Additionally, VRG has retained Armor Revenue Cycle Management, LLC ("Armor") to streamline its financial processes. Armor gives VRG access to fast and efficient administrative and clinical functions associated with claims processing, payment, and revenue generation. Armor will promote quality data organization from the moment VRG's clients schedule an appointment through the completion of the revenue cycle.

VRG management has been meeting with Fayette County Family Court officials and the Fayette County Criminal Courts in a collaborative effort to assist women negatively impacted by the drug crisis. The Mount Hope Campus is ideally located to serve as a place for healing women, reuniting mothers with their children, and reuniting families upon completion of treatment. VRG has also scheduled meetings with Greenbrier County and Raleigh County to expand its relationship with the West Virginia courts.

VRG recently received grant proceeds from the State of West Virginia Bureau of Behavioral Health, Department of Health and Human Resources ("DHHR"). VRG's relationship with West Virginia State Officials in Charleston served as a catalyst for efficient processing and distribution of the grant award. VRG was awarded a total of $65,257.00 as part of its initial build-out for in-patient services. VRG has received $1,000.00 from Warm Hearts, Warm Hands of West Virginia for a vegetable garden at the Mount Hope Campus and has been approved to submit receipts for a list of supplies for reimbursement through State Opioid Response Program with the West Virginia School of Osteopathic Medicine, Center for Rural and Community Health. VRG is finalizing its intended purchase but anticipates a value of approximately $35,000.00. This brings the 2023 Grant total to $101,257.00. VRG intends to monitor available grant applications and submit requests for additional Grant programs as they are announced.

Furthermore, VRG has begun implementation of an end-to-end platform specifically designed for behavioral health centers from management of the electronic health record supporting every part of the client recovery journey at the Mount Hope Campus. KIPU integrates the electronic health record with revenue cycle management for an efficient, compliant, client and staff experience aimed directly at the behavioral health service industry. New clients will be monitored through KIPU and their electronic medical record will be directly reportable to establish medical necessity for billing purposes. KIPU's cloud-based solutions were designed specifically to meet the needs of addiction treatment and medical health professionals.

The State of West Virginia has passed HB 3337, Article 2D Certificate of Need, §16-2D-9, health services that cannot be developed prohibiting additional drug and alcohol treatment facilities and services in a every county. This law, which limits the number of treatment beds to 250 per county, benefits VRG, which currently has a license for twenty-eight (28) beds under Phase I, and has begun construction of an additional thirty-two (32) beds for Phase II with an approval of ten (10) additional beds, in the existing structure for Phase III. This results in a total capacity of seventy (70) beds for the Mount Hope Campus. Moreover, VRG has retained an architectural firm to certify plans for two (2) additional structures taking the total number of licensed treatment beds to two-hundred and fifty (250). Ultimately, this will make VRG the only licensed substance abuse treatment bed facility in Fayette County, West Virginia. Construction on Phase II has been slightly delayed due to supply chain constraints for materials most of which have already been delivered to the facility. Approximately 33% of the construction for Phase II has been completed to date. The completion of construction for the additional thirty-two (32) beds is expected by July 1, 2023, depending on material delivery. During construction of Phase II, VRG will apply for a certificate of need exemption for a total of sixty (60) beds in Fayette County with the West Virginia Health Care Authority. Upon completion of the construction, an amended license application must be submitted to the State of West Virginia Office of Health Facility Licensure and Certification and all appropriate inspections and paper work must be submitted prior to issuance of a license for sixty (60) residential treatment beds. VRG expects this approval process to be expeditious.

VRG has been credentialed by the Bureau of Medical Services for in-patient residential treatment with Medicaid and HMO providers Unicare, Aetna Better Health of WV; and The Health Plan ("THP"). VRG is obtaining credentialling with additional insurance carriers as well. VRG's OHFLAC Certificate of Occupancy provides for the following levels of care pursuant to the BMS provider manual Chapter 504 - Substance Use Disorder: 504.18.4 Residential Adult Services ASAM® Level 3.7 – six (6) beds; 504.18.3 Residential Adult Services ASAM® Level 3.5 – fourteen (14) beds; and 504.18.1 Residential Adult Services ASAM® Level 3.1 – eight (8) beds, full details regarding VRG's approved levels of care can be found at dhhr.wv.gov. Out-patient services at the Mount Hope Campus are currently offered. VRG has established a consistent market to expand in this regard.

Furthermore, VRG will gain additional revenue from services such as counseling, peer recovery services, lab work, and testing, for ancillary services unrelated to its per-diem bundle. VRG leases a laboratory space within the Mount Hope Campus, to Appalachian Labs of WV, LLC and maintains lab-work collection with Charleston Area Medical Center ("CAMC") Lab Works.

Additionally, VRG has partnered with WIN West Virginia Foundation, Inc. ("WIN") (Winning the War Against Substance Abuse). The program delivers judgment free, comprehensive medical care with hope and compassion, specializing in treatment of women and the healing of the family unit. WIN provides some peer recovery services at the Mount Hope Campus through its four-part plan focused on prevention, treatment, peer and community support, and empowerment. The peer recovery navigators at WIN assist clientele as the transition from recovery back to society.

Stephen G. Macklem, Chief Financial Officer, stated, "I am pleased that revenues are accumulating currently as we implement the KIPU electronic health record and billing software and expect the second quarter to be on target as Veltex Recovery Group becomes integrated into the West Virginia Medicaid and HMO cycle of payment. This process, although time consuming to implement and change from Athena, our current software provider, will greatly benefit the operation in a more efficient revenue flow from insurance carriers, allow for revenue projections to be accurate and reduce errors and delays in billing."

Andreas Mauritzson, President and CEO of Veltex Corporation, stated, "I am proud to say the progress made at the Mount Hope Campus is on target for our corporate vision for this property. I am pleased to report the facility will be the premiere 'all women's facility' in the State of West Virginia. Despite Covid-19 set-backs, supply chain delays, the complexity of licensing a Behavioral Health Facility under state and federal law, and marketing of a new facility, all of which takes extensive time, money and effort, VRG has cleared all obstacles and is now operating what will soon be one of the largest all women's facilities in the state. Under HB 3337, we expect the Mount Hope Campus to be Fayette County with two-hundred fifty (250) beds once complete."

Veltex Corporation's wholly owned subsidiary, Veltex Properties, Inc., a Delaware Corporation, leases the 35,000 sq.ft. facility and approximately five (5) acres of land to Veltex Corporation's wholly owned subsidiary, Veltex Medical, Inc., a Delaware Corporation. This facility and land operates as a Veltex Recovery Group Campus. Future plans in Phase IV, call for architectural drawings, permits and construction of, at least two (2), additional residential facilities on the premises to operate expanded in-patient Behavioral Health services.

About Veltex Corporation

Veltex Corporation, ( OTCQB: VLXC), incorporated in Utah September 17, 1987, is a public holding corporation, which maintains its corporate headquarters in Chicago, Illinois. Veltex's common shares trade OTC Markets under the symbol VLXC. Veltex is a premier Health and Wellness Acquisition Firm, specifically targeting Substance Use Disorder ("SUD") treatment entities. Veltex Medical, Inc. d/b/a Veltex Recovery Group ("VRG"), a Delaware corporation and Veltex Properties, Inc. ("VPI"), a Delaware corporation are both wholly owned subsidiaries of Veltex. VMI operates an approximately 30,000 Sq. Ft. out-patient substance use disorder treatment facility at 101 Martin Drive, Mount Hope, WV 25880, providing both out-patient and in-patient treatment of Substance Use Disorder.

For additional information, please visit our corporate website at: Veltex.com, and our VRG website: Veltexrecoverygroup.com

Safe Harbor Statement

Forward Looking Statement

Safe Harbor Statement; Certain of the above statements contained in this press release are forward-looking statements that involve a number of risks and uncertainties. Such forward looking statements are within the meaning of that term in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Readers are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those indicated in the forward-looking statements as a result of various factors. This press release includes forward-looking statements intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. These forward-looking statements generally can be identified by phrases such as Veltex or its management "believes," "expects," "anticipates," "foresees," "seeks," "forecasts," "estimates" "projected" "plans" or other words or phrases of similar import. Similarly, statements herein that describe Veltex's business strategy, outlook, objectives, plans, intentions or goals also are forward-looking statements. All such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those in forward-looking statements. Any statements made in this press release which are not historical facts contain certain forward-looking statements; as such term is defined in the Private Security Litigation Reform Act of 1995, concerning potential developments affecting the business, prospects, financial condition and other aspects of the company to which this release pertains. The actual results of the specific items described in this release, and the company's operations generally, may differ materially from what is projected in such forward-looking statements. Although such statements are based upon the best judgments of management of the company, Veltex, as of the date of this release, significant deviations in magnitude, timing and other factors may result from business risks and uncertainties including, without limitation, the company's dependence on third parties, general market and economic conditions, technical factors, the availability of outside capital, receipt of revenues and other factors, many of which are beyond the control of the company. The company disclaims any obligation to update information contained in any forward-looking statement. This press release shall not be deemed a general solicitation.

SOURCE Veltex Corporation