TORONTO, May 28, 2013 (GLOBE NEWSWIRE) -- GreeneStone Healthcare Corporation (OTCBB:GRST) ("GreeneStone" or the "Company") , a provider of Healthcare services and operator of several mental health clinics, announced today the agreement with the Landlord of its 5734 Yonge Street location for a Lease Extension and financing for its leasehold improvements and equipment.
GreeneStone previously announced this initiative in March of this year and initially leased this location as a sublet from The Rothbart Pain Clinic in June of 2010 for the balance of the term on Rothbart's lease expiring July 31, 2013.
The new lease agreement commences August 1, 2013. Occupancy rates are similar to that of the sublet with an initial five-year term including the option to extend for an additional five years. The landlord will contribute $50,000 for leasehold improvements and has offered an unsecured loan of $75,000 for the same purpose. The loan will be amortized over the first five year term of the lease and will bear interest at bank prime plus 1%. As part of the sublease Rothbart held approximately $60,000 in prepaid rent. The three amounts together will give the Company approximately $185,000 in financing for the renovation and improvement of the space. The renovation of the entire 7,903 square feet will include the previously announced surgical suite.
Shawn Leon, GreeneStone's chief executive officer stated, "Part of the Company's overall goals for the rest of this year are to increase revenue in all GreeneStone divisions and to contain costs by managing payroll and occupancy costs. This new lease arrangement and renovation will contribute greatly to these efforts and will increase the number of doctors we can staff, from three, to nine."
The CEO, CFO and two other employee's working in the mental health division will be temporarily displaced so that once the Company leases additional new space, the out-patient, aftercare and displaced staff will be operating out of this new location which GreeneStone expects to finalize and announce imminently. The renovation will increase the size of the recovery area, waiting room, administration office, and add one new procedure room and one new surgery suite all of which will increase the capacity of the clinic. The Company will rebrand this clinic from 'GreeneStone Clinic Toronto' to 'Greenestone Surgery and Endoscopy'.
The surgical suite will be a Level 3 Out of Hospital Premise (OHP) as described in the guidelines of the College of Physicians and Surgeons of Ontario CPSO). This surgical suite will allow the Company to perform gastric banding as a natural extension to its gastroenterology work. It will also allow the Company to earn income from other non-related procedures such as plastic surgery. This additional revenue leverages much of our infrastructure at this clinic and will improve the bottom line. This suite is expected to be operational in the third quarter of 2013.
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
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 (the "Securities Act") and Section 21E of the Securities Exchange Act of 1934 (the "Exchange Act"). To the extent that any statements made in this press release contain information that is not historical, these statements are essentially forward-looking. Forward-looking statements can be identified by the use of words such as "expect," "plan," "will," "may," "anticipate," "believe," "should," "intend," "estimate," and variations of such words. Forward-looking statements are subject to risks and uncertainties that cannot be predicted or quantified and, consequently, actual results may differ materially from those expressed or implied by such forward-looking statements. Such risks and uncertainties include, without limitation, those risks and uncertainties contained in this press release and those identified in the periodic reports that the company files with the Securities and Exchange Commission (the "SEC") pursuant to the Exchange Act.
CONTACT: Investor contact: Christine Petraglia CSIR Group, LLC (212) 386 7082 email@example.comSource:GreeneStone Healthcare Corporation