PRINCETON, N.J., April 17, 2007 (PRIME NEWSWIRE) -- GSI Securitization (Pink Sheets:GSIEF) has executed a sell and purchase agreement for a hospital with annual revenues of $50 million. GSI will handle the sale of the hospital and subsequently purchase its ongoing receivables.
In addition, as previously announced, upon completion of its proposed merger with Comprehensive HealthCare Solutions, Inc. (OTCBB:CMHS), which is currently under negotiation, the company will be a fully reporting company.
GSI Securitization is in the process of finalizing several agreements with public and private hospitals. Per specific restraints by regulatory protocol, the names of the specific hospitals cannot be announced. GSI projects that the potential patient accounts receivable, which are in the final stage of contract negotiations, totaled over $200 million in 2006, with additional receivables for the current year.
GSI previously announced that it had signed a definitive agreement with Silar Advisors, LP to form a strategic alliance for the purpose of financing medical receivable acquisitions. As a result of the financing agreement, GSI is well-positioned to acquire large volumes of medical receivables. Both GSI and Silar have broad-based experience in receivable valuations, acquisitions, financing, servicing, collections and other investment opportunities.
In analyzing these events, Gunther Slaton, CEO of GSI, stated, "We look forward to continued growth in the healthcare industry with the unique services that GSI provides." Mr. Slaton went on to say, "The proactive efforts by Mr. John Treglia, CEO of CMHS, in bringing the items above to fruition, have been a welcome addition to what we perceive to be a strong addition to our management and marketing team."
The company will continue to inform the investment community regarding progress of GSI Securitization.
Forward-Looking Statements
Statements released by GSI Securitization, Inc. that are not purely historical are forward-looking within the meaning of the "Safe Harbor" provisions of the Private Securities Litigation Reform Act of 1995, including statements regarding the company's expectations, hopes, intentions and strategies for the future. Investors are cautioned that forward-looking statements involve risk and uncertainties that may affect the company's business prospects and performance. The company's actual results could differ materially from those in such forward-looking statements. Risk factors include but are not limited to general economic, competitive, governmental and technological factors as discussed in the company's filings with the SEC on Forms 10-K, 10-Q and 8-K. The company does not undertake any responsibility to update the forward-looking statements contained in this release.