TORONTO, Sept. 15, 2014 (GLOBE NEWSWIRE) -- The Board of Directors of GreeneStone Healthcare Corporation (OTCBB:GRST) ("GreeneStone" "GRST" or the "Company"), a provider of healthcare services including Addiction and Mental Health, has approved a plan to become more specialized with a greater focus on the company's addiction treatment businesses. As part of this repositioning, the Board has also voted to divest its endoscopy subsidiary.
GreeneStone's addiction treatment division has increased its revenues significantly over the last several months as a result of greater recognition related to the in-house treatment of a series of high profile clients. The Board has determined that it is in the best interest of shareholders to direct full attention and assets to its Addiction and Mental Health business which can be grown organically, and via acquisition opportunities in Canada and the United States. GreeneStone is currently in negotiations to sell its endoscopy subsidiary with an affiliated group of doctors that has been involved with the operations of this business division. The Company expects to come to final terms and aims to complete the divestiture within the next 30 days.
Shawn Leon, President and CEO, commented, "As our Addiction and Mental Health centers continue to attract attention and grow, we have determined that it is wise to streamline our energies. There are many opportunities for us to expand our services and reach entirely new markets using the programs and procedures supervised by our outstanding team of professionals that are well-established, proven and garnering worldwide recognition."
Regarding the divestiture, Leon explained: "The Endoscopy business was our first healthcare business. Fortunately, it is an attractive asset that we can sell, which will allow us to use the proceeds to help fund what we have determined to be our core growth business."
Results from the second quarter have shown that the plan to contain costs has improved profitability. The cost containment, together with increased revenue this current quarter will continue to show further improvements in profitability. Leon added, "The timing is right for us to focus on our core business and to take advantage of the strong interest we have in the treatment we offer. Our professional team has been doing great work in our treatment center and we are being rewarded for it. We are proud of the treatment staff and all that they have achieved. GreeneStone has turned a corner and so many of our goals are coming to fruition."
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.
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