TORONTO, Feb. 2, 2015 (GLOBE NEWSWIRE) -- GreeneStone Healthcare Corporation (OTCBB:GRST) ("GreeneStone" "GRST" or the "Company"), a provider of healthcare services including addiction and mental health, has finalized the terms for the acquisition of the property currently leased by the Company. The property, which is the location of GreeneStone's Muskoka addiction treatment center, encompasses 50,000 square feet of buildings on 43 acres and is adjacent to Lake Muskoka in Ontario. The property has 11 separate buildings, including five detox suites, 29 residential suites, staff cottages with 13 individual bedrooms, a self-contained fitness center, kitchen and dining facilities, and several meeting and therapy rooms. Additional facilities include an indoor and outdoor pool, a tennis court, a volleyball court, a running track and nature trails.
The purchase price for the property is CAD$10,000,000.00 and is being funded by a Vendor Take-Back mortgage of CAD$5,000,000.00 at 8.4% and the issuance of two million shares of Series A Preferred Stock (the "Preferred Stock") which is convertible into 50,000,000 shares of common stock. Using the current foreign exchange rate, the effective valuation of the equity is approximately US$4,000,000, or US$0.08 per share (which is twice the closing price of the Company's common stock on January 30, 2015). The Company expects this deal to close in the first quarter of this year.
GreeneStone will seek to replace the Vendor Take-Back mortgage as soon as possible with a lower-rate commercial mortgage and potentially increase the amount of the mortgage in order to provide extra cash for the Company. Any increase in the $5,000,000.00 collateral against the Real Estate will be subject to approval from the Preferred Stockholder anytime while shares of the Preferred Stock are outstanding.
GreeneStone announced in 2013 that it entered into an LOI to purchase the property and the final terms are similar to what was contained in that LOI. Cranberry Cove Holdings Ltd. ("CCH") is the owner of the property and will be the recipient of the Preferred Stock. CCH is owned by GreeneStone's current CEO. The purchase price is based on a bona fide appraisal.
About GreeneStone Healthcare Corporation
GreeneStone Healthcare Corporation (OTCBB:GRST) operates an addiction treatment center in Ontario, Canada. GreeneStone's clinic adds overflow capacity to an increasingly stretched provincial healthcare system, and provide private alternatives to publicly available healthcare services. The Company currently has more than 40 employees and is based in Toronto, Ontario. For more information you can visit our website at www.greenestone.net.
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