Graymark Divests Non-core Sleep Centers for $2.5 Million
OKLAHOMA CITY, May 11, 2011 /PRNewswire/ -- Graymark Healthcare, Inc. (NASDAQ: GRMH), the nation's second largest provider of diagnostic sleep services and an innovator in comprehensive care for obstructive sleep apnea (OSA), has closed the sale of its Nocturna East Sleep Centers unit for $2.5 million in gross cash proceeds.
The sale comprised a total of eight stand alone sleep centers, seven located in western New York and one in Florida. Given that the company only performed diagnostic sleep tests at these locations, the sale of this asset is expected to have no effect on Graymark's recurring revenue re-supply business.
"The divestiture of Nocturna East provides us two key benefits," said Stanton Nelson, CEO of Graymark Healthcare. "Primarily, we exited locations that were limited to sleep diagnostics only, whereas we see the real opportunity in our comprehensive care model, including the set up and re-supply of CPAP equipment. As demonstrated by our seven hospital contracts signed to date in 2011, we're developing a platform that oversees the entire lifecycle of the patientfrom referral through continuing care. Secondarily, the proceeds of the divestiture will more than cover our short-term debt obligations and allow management to concentrate on developing our core business."
"It's important to note that Nocturna East represented the only part of our business with this particular limitation," added Nelson. "So we do not foresee any further divesting of our other existing standalone sleep centers."
Graymark operates a total of 98 sleep laboratories nationwide, comprised of 24 standalone or IDTF facilities in large communities and 74 hospital, provider or rural outreach sites. While the care environments may vary based on community need, Graymark ensures that the quality and comprehensiveness of the services provided remain consistently at the highest standard.
About Graymark Healthcare
Headquartered in Oklahoma City, Okla., Graymark Healthcare, Inc. (NASDAQ: GRMH) is the nation's second largest provider of sleep management solutions. In addition to diagnosing and treating over 80 sleep disorders, the company specializes in comprehensive care for Obstructive Sleep Apnea (OSA). Graymark offers its services through 98 sleep laboratories throughout the United States, including standalone or IDTF facilities, rural outreach sites and hospital or provider agreements. For more information, visit www.graymarkhealthcare.com.
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SOURCE Graymark Healthcare, Inc.