Xalles Acquires InnovationsHR to Establish a Foothold in the US Healthcare Financial Ecosystem

Rhea-AI Summary

Xalles Holdings Inc. (OTC: XALL) has announced its acquisition of InnovationsHR, Inc. (IHR), a Texas-based Professional Employer Organization (PEO), which is expected to generate approximately $20 million in revenue for 2023. IHR will be the first licensed PEO in Texas to self-insure, enhancing its market position. The acquisition is projected to be completed by March 31, 2023, and includes an option for IHR to acquire USPCPS MSO, LLC, which has significant roles in the healthcare sector. CEO Thomas Nash highlighted that IHR's solutions can create recurring revenue streams for Xalles.

Positive

• IHR expected to generate approximately $20 million in revenue in 2023.
• Acquisition enhances market position as the first licensed PEO in Texas that can self-insure.
• Strategic partnership with Ovation Health Plan recognized for healthcare innovation.
• Potential for recurring revenue streams established through IHR's service offerings.

Negative

• None.

IHR is Expected to Generate Approximately $20 Million in Revenue in 2023

WASHINGTON, D.C., March 13, 2023 (GLOBE NEWSWIRE) -- via NewMediaWire -- Xalles Holdings Inc. (OTC: XALL), a fintech holding company providing technology and financial services solutions, today announced that it has executed an acquisition agreement with Texas-based InnovationsHR, Inc. (“IHR”) to become a wholly owned subsidiary under Xalles Financial Services Inc.

InnovationsHR is poised to disrupt the Professional Employer Organization (PEO) market. It will soon be the first and only licensed PEO in Texas that can self-insure. In addition, InnovationsHR has partnered with Ovation Health plan, a recognized leader in healthcare innovation. Ovation Health Plan was featured on Advancements TV, hosted by Ted Danson, as the future of healthcare.

InnovationsHR is a technology-driven company based in Kingwood, a suburb of Houston, Texas and is focused on delivering an exceptional customer experience using a completely transparent service model. Unlike other PEOs, employers who work with InnovationsHR can select from a menu of services and know the cost in advance.

IHR is led by Dr. John McCormick, a 22-year Air Force veteran with extensive leadership and management skills in organizations of up to 1,500 personnel in size. Dr. McCormick has a doctorate in Leadership and Management from St. Thomas University, FL, an M.A. in Education Administration from Sam Houston University, TX, a B.S. in Criminal Justice from Park University, MO, and two A.A.S. degrees, one as an Instructor of Technology and Military Science and the other in Security Administration from the Community College of the Air Force.

Part of the IHR acquisition is an option for IHR to acquire 100% ownership of Texas-based USPCPS MSO, LLC, a leading Management Service Organization focused on the healthcare market. USPCPS MSO in turn owns and controls key subsidiary companies. The first is, Alliance MSO, LLC which is a Medical Service Organization that credentials and manages a Physician Network of over 1,000 primary care and medical specialists, for which it negotiates contracts with Medicare Advantage and Commercial insurers to enhance provider reimbursement. The second is, PPC TPA, LLC which is a fully licensed multi-state Third-Party Administrative company which is a delegated claims payor for Medicare Advantage and Commercial insurers. PPC TPA has an on-time payment record of 99.98% of all claims being paid within 30 days and all clean claims paid within 14 days. Finally, International Universal General Agency Inc. (dba: “Innova”) which is a full line licensed Life, Health, Property and Casualty Insurance Agency. Innova is appointed with numerous major insurance carriers and delivers a full range of products to meet customer needs. Through this agency, IHR will be able to provide its customers with any insurance product they require under the menu of services.

“We are thrilled to have Dr. John McCormick and his team, bringing a variety of solutions to the healthcare industry, to now be part of Xalles,” commented Xalles Holdings CEO Thomas Nash. He continued, “Each of the services InnovationsHR offers sets up a financial toll gate for recurring revenue and profit.”

The IHR acquisition is contracted to be completed on or before March 31, 2023.

About Xalles Holdings Inc. (OTC: XALL)

Xalles Holdings Inc. is a holding company that focuses on direct investments in disruptive fintech companies. The company actively seeks acquisition targets in which it can invest and accelerate growth, targeting companies with solid management teams and business models, large total attainable markets (TAM), and lucrative exit opportunities. The company places emphasis on leveraging blockchain and other technologies to provide industry-leading financial reconciliation and auditing solutions, which, over time, will allow for the capture of recurring revenue streams. For more information visit: Xalles.com. To learn more about InnovationsHR visit: InnovationsHR.com

Forward-Looking Statements Disclaimer:

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. In some cases, you can identify forward-looking statements by the following words: "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "ongoing," "plan," "potential," "predict," "project," "should," "will," "would," or the negative of these terms or other comparable terminology, although not all forward-looking statements contain these words. Forward-looking statements are not a guarantee of future performance or results, and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved. Forward-looking statements are based on information available at the time the statements are made and involve known and unknown risks, uncertainty and other factors that may cause our results, levels of activity, performance or achievements to be materially different from the information expressed or implied by the forward-looking statements in this press release. This press release should be considered in light of all filings of the Company that are contained in the Edgar Archives of the Securities and Exchange Commission at www.sec.gov and in OTC Markets at www.otcmarkets.com

Investor Relations Contact:

info@xalles.com
www.xalles.com
202.595.1299 Office

FAQ

What is the significance of Xalles Holdings' acquisition of InnovationsHR?

The acquisition is significant as it positions Xalles Holdings to capture approximately $20 million in revenue in 2023 and allows InnovationsHR to disrupt the PEO market in Texas.

When is the completion date for the acquisition of InnovationsHR by Xalles Holdings?

The acquisition is contracted to be completed on or before March 31, 2023.

What is InnovationsHR's unique offering in the PEO market?

InnovationsHR is set to be the first licensed PEO in Texas that can self-insure, providing a unique advantage in the market.

What revenue is expected from InnovationsHR in 2023?

InnovationsHR is expected to generate approximately $20 million in revenue in 2023 following its acquisition by Xalles Holdings.

How does the acquisition of IHR contribute to Xalles Holdings' business model?

The acquisition of IHR contributes to Xalles Holdings' business model by establishing a potential for recurring revenue through a diverse range of service offerings.