TORONTO, Dec. 20, 2013 (GLOBE NEWSWIRE) -- GreeneStone Healthcare Corporation (OTCBB:GRST) ("GreeneStone" or the "Company"), a provider of healthcare services including Addiction and Mental Health has signed a non-binding Letter of Intent ("Addiction LOI") to merge the assets of its addiction and mental health business with other addiction and mental health assets for a cash and equity consideration of up to $7.75 million. If the merger is completed, the result will reduce the percentage of ownership the Company has in the assets while eliminating all the company unsecured debt. The merger will not affect the company's plan to acquire the Property announced separately. The Company will lease the Property to the merged entity.
The Company will seek shareholder approval for the merger and approval of the merger will be added to the agenda for the previously announced plan to hold a special meeting of shareholders to approve the Property acquisition. The Company will be seeking pre-approval for the transaction and, if approved, the transaction would be signed and closed simultaneously shortly after receiving the shareholder approval. More details about the proposed transaction will be provided in the notice to shareholders for the special meeting.
Shawn Leon, CEO of the Company said, "This transaction will transform the Company from an under-capitalized early stage operator of health care businesses to a rock solid holder of healthcare assets with the ability to incubate and grow other health care businesses for long term growth and value creation for our shareholders. The Board of Directors are overwhelmingly in support of this transaction."
About GreeneStone Healthcare Corporation
GreeneStone Healthcare Corporation (OTCBB:GRST) operates medical and healthcare clinics in Ontario, Canada. GreeneStone's clinics serve to add overflow capacity to an increasingly stretched provincial healthcare system, and provide private alternatives to publicly available healthcare services. Its four medical clinics (three in Toronto, along with a facility in Muskoka, Ontario) offer various medical services, including addiction treatment, endoscopy, minor cosmetic procedures, and executive health care services. The Company currently has more than 60 employees and is based in North York, Ontario. For more information you can visit our website at www.greenestone.net.
Notice Regarding Forward-Looking Statements
The information contained herein includes forward-looking statements. These statements relate to future events or to our future financial performance, and involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance, or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. You should not place undue reliance on forward-looking statements since they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond our control and which could, and likely will, materially affect actual results, levels of activity, performance or achievements. Any forward-looking statement reflects our current views with respect to future events and is subject to these and other risks, uncertainties and assumptions relating to our operations, results of operations, growth strategy and liquidity. We assume no obligation to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.