WATERBURY, Conn.--OptiCare Health Systems (AMEX: OPT) spun off its distribution division--comprised of Wise Optical and its optical buying group--last week, selling the division to former chief executive officer Dean Yimoyines, MD, who resigned from that position as the transaction closed. The division sold for $4.15 million, “less a working-capital adjustment.”

The company also received a new infusion of cash: a $4 million equity investment from Palisade Concentrated Equity Partnership, its majority stockholder, as well as $445,000 from Linda Yimoyines, wife of the former CEO.

President and general counsel, Christopher Walls was named CEO, replacing Dean Yimoyines, who continues as a director and in his role as president/CEO of the company’s medical affiliate, OptiCare. P.C.

OptiCare Health Systems retains what Walls called its “core businesses,” including its managed-care operation; medical, surgical, and optometric services, and 18 retail optical stores.

Walls said the transaction “strengthens the company’s financial position and creates a solid foundation for growth.” He added, “The company has divested itself of noncore underperforming assets and dramatically decreased its debt over the past few years, and can now focus on improving operating efficiencies and growth in its core businesses.”

Said Yimoyines, “This transaction will allow me to return to my entrepreneurial roots while still providing guidance and counsel to OptiCare.”