YONKERS, N.Y., March 6, 2007 (PRIME NEWSWIRE) -- Comprehensive HealthCare Solutions, Inc. (OTCBB:CMHS) announced today that it has executed a letter of intent to purchase all of the issued and outstanding shares of GSI Securitization, Inc. The acquisition is subject to the finalization of terms of a definitive reverse acquisition agreement which is currently being negotiated by the companies. It is the intent of both parties to execute such agreement by March 15, 2007. GSI is currently involved in the business of financing medical receivable acquisitions.
On January 23, 2007 GSI announced that it had signed a definitive agreement with Silar Advisors, LP to form a strategic alliance for the purpose of financing and servicing medical receivable acquisitions. Pursuant to the strategic relationship, Silar will provide the capital for GSI which will put GSI in a position to significantly expand its customer base which should have a positive impact on future earnings. Both GSI and Silar have broad based experience in receivable valuations, acquisitions, financing, servicing, collections and other investment opportunities. GSI is also involved in negotiations with a number of medical institutions to purchase their patient receivables.
On January 3, 2007, Comprehensive divested itself of all of its operating entities with the intent of management at that time to search for a viable acquisition/merger candidate to bring to the company and its shareholders potential value and earnings.
John Treglia, CEO stated "we believe that the recent functioning agreement entered into by GSI with Silar Advisors, LP will give the merged company the opportunity to greatly expand it customer base and financial services. The merged company will now have the ability to successfully complete its negotiations with several healthcare facilities to purchase their patient accounts receivable, usually on a long-term 3 year renewable basis. We believe that this potential acquisition will provide value to our shareholders if it is finalized."
Forward-Looking Statements
Statements released by Comprehensive HealthCare Solutions, 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.