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MONTREAL, Oct. 21 /CNW Telbec/ - OPMEDIC GROUP INC. ("OPMEDIC GROUP") (TSX: "OMG"), a healthcare-related company in fertility, laboratories and surgeries providing services and facilities to patients and surgeons, is pleased to announce that its Board of Directors has approved a project for the construction of a medical center in Longueuil, on the South Shore of Montreal, in a facility yet to be built which will occupy approximately 30,000 sq. ft. It is expected that the land and the building for the medical center will be owned and built by a company in which OPMEDIC GROUP will hold 50% of the shares, with the balance being held by unrelated health professionals. An offer has been made to purchase the land on which the medical center is to be built and OPMEDIC GROUP is conducting the customary due diligence for the purchase of the land and preparation of the construction plans. An agreement in principle has been reached between OPMEDIC GROUP and its future partners on the terms of ownership and operation of the medical center. OPMEDIC GROUP estimates its 50% share of the cost of the project at about $3 million, and it plans to finance its investment in the project by conventional bank loan. Subject to obtaining all permits and authorizations required for construction and finalizing agreements with its partners, OPMEDIC GROUP expects construction of the medical center to start in January 2010.
OPMEDIC GROUP is also conducting a feasibility study to assess the potential to open and operate a new surgical and endoscopic facility in the medical center that may feature 3 operating rooms, including one dedicated to local anesthetic surgical procedures, one dedicated to general anesthetic procedures and the final one dedicated to endoscopic procedures. These operating rooms could occupy about 12,500 sq. ft. representing 40% of the leasable area of the medical center. These new operating rooms would be in addition to existing operating rooms in Montreal, Québec and Laval and could increase the number of operating rooms in OPMEDIC GROUP's surgical business unit by approximately 40%, bringing the company's total number of surgical and endoscopic operating rooms to 10.
The new South Shore medical center is also expected to house a pharmacy and a general medical clinic. Conditional offers have been received for over 75% of the leasable area of the medical center.
OPMEDIC GROUP will issue another press release when all the conditions for completion of the South Shore medical center project have been satisfied, confirming the schedule of work and the expected opening date and when a decision has been made with respect to the opening of new surgical and endoscopic facilities in the South Shore medical center.
About OPMEDIC GROUP
OPMEDIC GROUP is a company incorporated under the laws of the Province of Québec which provides healthcare-related services including surgical and endoscopic facilities and services to patients and surgeons (with its OPMEDIC division), fertility treatments, medical imaging, laboratory services and diagnostic procedures (with its PROCREA Cliniques division) and sperm banking services (with its PROCREA Cryopreservation Centre subsidiary). OPMEDIC GROUP's Common Shares trade on the Toronto Stock Exchange under the symbol "OMG".
This news release does not constitute an offer to sell or solicitation of an offer to buy any security and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offering would be unlawful. This news release contains certain forward-looking statements that reflect the current views and/or expectations of OPMEDIC GROUP with respect to its performance, business and future events. Such statements are subject to a number of risks, uncertainties and assumptions. Actual results and events may vary significantly.
The Content of this press release has not been approved by or submitted to the TSX, which assumes no liability therefore.
SOURCE Opmedic Group Inc.
For further information: For further information: Jean-Marc Lachance, Vice President Finance and Chief Financial Officer, (514) 345-8535 x 2260, firstname.lastname@example.org; Johanne Berger, Business Development and Chief Operating Officer, Opmedic Division, (450) 662-9393 x 3235, email@example.com