TORONTO, June 5, 2015 /CNW/ - Medical Facilities Corporation ("Medical Facilities" or the "Company") (TSX: DR), announced today that Dakota Plains Surgical Center LLP ("DPSC"), the Company's 65% owned subsidiary, has entered into an agreement to sell its surgical hospital located in Aberdeen, South Dakota to Avera St. Luke's ("Avera"). Subject to customary closing conditions, the transaction is expected to close at the end of Q2 2015.
Medical Facilities remains focused on and committed to its growth strategy, including active pursuit of accretive acquisitions. The Company continues to review opportunities and platforms which will facilitate Medical Facilities' continued growth and expansion. The Company has taken this opportunity to sell its 65% position in DPSC and with the expected proceeds from the DPSC transaction and its other available financing resources, the Company is well positioned to act on such opportunities.
About Medical Facilities
Medical Facilities owns controlling interests in five specialty surgical hospitals located in Arkansas, Oklahoma and South Dakota, as well as an ambulatory surgery center in California. The specialty hospitals perform scheduled surgical, imaging, diagnostic and other procedures, including urgent and primary care, and derive their revenue from the fees charged for the use of their facilities. The ambulatory surgery center specializes in outpatient surgical procedures, with patient stays of less than 24 hours. Medical Facilities is structured so that a majority of its free cash flow from operations is distributed to the holders of its common shares in the form of dividends. For more information, please visit www.medicalfacilitiescorp.ca.
Caution Concerning Forward-looking Statements
Statements made in this news release, other than those concerning historical financial information, may be forward-looking and therefore subject to various risks and uncertainties. Some forward-looking statements may be identified by words like "may", "will", "anticipate", "estimate", "expect", "intend", or "continue" or the negative thereof or similar variations. Certain material factors or assumptions are applied in making forward-looking statements and actual results may differ materially from those expressed or implied in such statements. Factors that could cause results to vary include those identified in Medical Facilities' filings with Canadian securities regulatory authorities such as legislative or regulatory developments, intensifying competition, technological change and general economic conditions. All forward-looking statements presented herein should be considered in conjunction with such filings. Medical Facilities does not undertake to update any forward-looking statements; such statements speak only as of the date made.
SOURCE Medical Facilities Corporation
For further information: Michael Salter, Chief Financial Officer, Medical Facilities Corporation, 416.848.7380 or 1.877.402.7162, email@example.com; Renée Lam, Investor Relations, TMX Equicom, 416.815.0700 or 1.800.385.5451 ext. 258, firstname.lastname@example.org