Business Wire

TORONTO -- October 10, 2012

GreeneStone Healthcare Corporation (OTCBB: GRST) (“GreeneStone” or “the
Company”) announces that it will expand its addiction treatment facilities
through a 'build & buy' growth strategy to take advantage of the green field
opportunity in Canada and the ever growing demand in the US in the
underserviced mental healthcare sector. GreeneStone aims to expand from its
current 36-bed treatment capacity up to 300 beds over the next twenty four
months. In the process, the company aims to expand its current revenue run
rate of $7 million plus to nearly $90 million. Management has currently
identified several potential acquisition opportunities in both the US and
Canada, several of which include underperforming operations in the US and
Canada and/or others that provide unique opportunity for profitable expansion.

GreeneStone is employing a 'build & buy' strategy in its growth plan. The
company has established a successful 'build' track record. GreeneStone Muskoka
was founded by converting a resort property into a first-class residential
addiction treatment facility. The Company’s outpatient and aftercare treatment
facility, GreeneStone Yorkville, successfully launched operations after the
company identified and secured the property and hired the clinical team. The
'buy' portion of the expansion strategy is intended to expand the company's
breadth of services, currently consisting of inpatient addiction treatment,
outpatient and aftercare service, and endoscopy procedures, along with eating
disorders for which facilities have been secured and are in the process of
being launched.

The company's revenue generating capacity for treatment beds is currently in
the range of $600 to $1000 per day per bed. Once GreeneStone's next two
clinics are opened, the company's bed capacity will expand to 118 from its
current 36-bed level, which would result in the company growing its revenues
from the current $7 million annualized run rate to over $35 million. The
revenue potential from expansion is considerable given the wide open playing
field in Canada, and North America. Recent M&A activity in the sector has
produced valuations for facilities in excess of $1,000,000 per bed, which
would result in significant valuation expansion potential for the company and
strong positioning in the current behavioral treatment sector.

“With awareness of mental health growing in North America, the healthcare
market is only beginning to wake up to the serious need for service and the
opportunity for companies to carve out an attractive niche in the sector.
Rapidly building out bed capacity and related services is essential to
establishing that positioning. Typical 300-500 bed players in this space have
revenue run rates in excess of $100 million from those operations. We are
highly active with our expansion strategy now and expect to be busy for quite
some time in order to reach what we consider to be the sweet spot in terms of
bed capacity starting at the 300 bed level,” commented Shawn Leon, CEO of
GreeneStone Healthcare Corp.

GreeneStone is a new company in the behavioral treatment sector in Canada, an
industry that has been well developed in the US but remains in its early
evolutionary stages in Canada. With increased interest from private equity
acquirers in recent history, the behavioral treatment sector has moved away
from the periphery. Acquirers like Bain Capital and Elements Behavioral have
clearly demonstrated the attractiveness of companies that can execute on the
operational side in this underserviced market.

Follow GreeneStone Healthcare Corp. and the company's activities at the
following Facebook sites:

GreeneStone Muskoka:

GreeneStone Yorkville:

About GreeneStone Healthcare Corporation

GreeneStone Healthcare Corporation (OTCBB: GRST) is a provider of mental
health services, specializing in the areas of addiction treatment, eating
disorders, nutrition and weight loss, and executive healthcare. GreeneStone is
among the many nascent healthcare companies re-defining the healthcare space
for the modern economy, which include Roche Holding Ltd. (OTCQB: RHHBY),
Sarepta Therapeutics Inc. (NASDAQ: SRPT), Nektar Therapeutics (NASDAQ: NKTR),
Celldex Therapeutics, Inc. (NASDAQ: CLDX), Achillion Pharmaceuticals, Inc.
(NASDAQ: ACHN), Zogenix, Inc. (NASDAQ: ZGNX). The company operates medical and
healthcare clinics in Ontario, Canada, serving a North American and
international clientele. GreeneStone’s clinics meet several ends: (1)
GreeneStone adds overflow capacity to an increasingly stretched public
healthcare system in Canada, (2) GreeneStone mental health clinics provide
private alternatives to publicly available but highly underserviced healthcare
subsectors, and (3) GreeneStone meets newly developing healthcare needs
undisturbed by the public/private market, such as eating disorders. The
company is headquartered in Toronto, Canada.

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.

Investor information and email sign-up:


GreeneStone Healthcare
Shawn Leon, (416) 222-5501
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