West Palm Beach, Fla., November 22, 2021 (GLOBE NEWSWIRE) – via NewMediaWire – Ethema Health Corporation (OTCPINK: GRST) (“Ethema” “GRST” or the “Company”), today filed third quarter financial results, including results of operations of the ARIA treatment facility which was acquired on July 1, 2021. The results reported for the period July 1 to September 30, 2021 corresponded to the ninth to eleventh month of operation of the new facility. The facility became profitable in the seventh month of operation and has been profitable every month since. Segmented information for the ARIA fulfillment center was EBITDA of $ 47,359 for the quarter. Revenue is recorded on the basis of the adjusted gross billing for the period. The facility recorded on average a net inflow of gross billings at a rate of approximately 13%. The net amount collected has increased slightly each month due to improvements in the billing and collection process. Blue Cross was billed for approximately 96% of total revenue for the quarter. The fourth quarter to date has been very good with higher occupancy and increased revenue compared to the same period in the third quarter. Profitability increases due to lower marketing expenses which will continue into the quarter. The last half of December has traditionally been slow in the industry and this can impact overall fourth quarter results. Construction of the first floor is well advanced and should be completed in December, allowing the facility to increase the number of beds by 10. The facility was able to add 2 beds to the existing number of 42 in November. The total number of beds will be 54 when the first floor is completed. All beds are licensed under the existing license.
The Company continued to eliminate debt, primarily through conversion to equity, during the quarter and after quarter end. These conversions are beneficial to the Company since the elimination of debt will ultimately consolidate the Company’s balance sheet.
The Company also made the decision to go ahead with the purchase of the property at 950 Evernia Street, West Palm Beach, Florida. The Purchase will be an off-balance sheet structure in which the Partnership will be the general partner of a limited partnership which will use the debt and equity of the limited partners as the structure to own the property. This will eliminate the need to directly increase Ethema’s equity and as a general partner, Ethema will still benefit from the ownership of the property. Ethema also plans to implement the same structure for its Canadian property, which will also improve the balance sheet. The US limited partnership will raise $ 1,500,000 in equity and the Canadian limited partnership will raise Cdn $ 1,500,000 in equity. Investors interested in participating in the offering can contact the CEO of the company for investment information materials. The Company will also publish this information on its website.
Mr. Shawn Leon, CEO of the Company, said: “We have just celebrated the first anniversary of the opening of the ARIA Treatment Center and we are extremely pleased with the progress made to date. We often run into capacity limits and can’t wait to get additional beds. We hope to complete the purchase of the property by the end of the year and work on further expansion once this is done. I wish to offer my best wishes and happy holidays to all of our shareholders this holiday weekend. We are truly blessed and grateful for all that we have.
About Ethema Health Corporation
Ethema Health Corporation (OTCPINK: GRST) operates in the field of behavioral health, specifically in the treatment of substance use disorders. Ethema has developed a unique style of treatment over the past decade and has had great success with inpatient treatment for adults. Ethema will continue to develop world class programs and techniques for North America. For more information, you can visit our website at www.ethemahealth.com.
Notice Regarding Forward-Looking Statements
The information contained in this document includes forward-looking statements. These statements relate to future events or our future financial performance, and involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to be materially. different from the results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. You should not place undue reliance on forward-looking statements, as they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond our control and which could, and probably will, materially affect results. actual activity, performance or achievement levels. Any forward-looking statement reflects our current views regarding future events and is subject to these and other risks, uncertainties and assumptions regarding our operations, results of operations, growth strategy and liquidity. We assume no obligation to publicly update or revise these forward-looking statements for any reason, or to update the reasons why actual results could differ materially from those anticipated in such forward-looking statements, even if from new information becomes available in the future.
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Ethema Health Society
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