West Palm Beach, Florida – 
Health Corporation (OTCPINK: GRST) (“Ethema” “GRST” or the
“Company”), filed the third quarter financial results today including the
results of operations for the ARIA treatment facility which was acquired on
July 1, 2021. The results reported for July 1 to September 30, 2021 were
the ninth to eleventh months of operation for the new facility. The
facility became profitable in the seventh month of operation and has been
profitable every month since. The segmented information for the ARIA
treatment center was an EBITDA of $47,359 for the quarter. Revenue is
recorded based on the adjusted gross billing for the period. The facility
has been averaging a net collection of gross billings at a rate of approximately
13%. The net collection amount has been increasing slightly each month
due to refinements to the billing and collection process. Blue Cross has
been billed for approximately 96% of the total revenue in 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 is increasing due to a drop in marketing expense which will
continue for the quarter. The last half of December is traditionally slow
in the industry and this may have an impact on overall fourth quarter
results. The build out on the first floor is well underway and
expected to 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
count of 42 in November. The total number of beds will be 54 when the
first floor is completed. All of the Beds are permitted under the
existing license.
The Company has continued to
eliminate debt, mostly through conversion to equity, during the quarter and
subsequent to the quarter end. These conversions are beneficial to the
Company as the elimination of debt will ultimately shore up the Company balance
sheet.
The Company has also made the
decision to move forward with the purchase of the property at 950 Evernia
Street, West Palm Beach, Florida. The purchase will be an off-balance
sheet structure whereby the Company will be the General Partner in a limited
partnership which will use debt and equity from Limited partners as the
structure to own the property. This will eliminate the need to raise
equity in Ethema directly and as the 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 U.S. limited partnership will be raising
$1,500,000 in equity and the Canadian limited partnership will be raising
CDN$1,500,000 in equity. Investors interested in participating in the
offering may contact the Company CEO for investment disclosure documents.
The Company will also be making these disclosures available on its
website.
Mr. Shawn Leon, Company CEO,
reported, “We just passed the one-year anniversary of the opening of the ARIA
treatment center and are extremely pleased with the progress to date. We
are often running into capacity limits and look forward to getting the
additional beds. We hope to get the property purchase completed by
year-end and work on further expansion once that is done. I want to
extend best wishes and happy holidays to all of our shareholders for 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 behavioral healthcare space specifically in the
treatment of substance use disorders. Ethema developed a unique style of
treatment over the last decade and has had much success with in-patient
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 herein
includes forward-looking statements. These statements relate to future
events or to 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 any future 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 since they involve known and
unknown risks, uncertainties and other factors which are, in some cases, beyond
our control and which could, and likely will, materially affect actual results,
levels of activity, performance or achievements. Any forward-looking
statement reflects our current views with respect to future events and is
subject to these and other risks, uncertainties and assumptions relating to 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 actual results could differ
materially from those anticipated in these forward-looking statements, even if
new information becomes available in the future.
For information please contact:
Ethema Health Corporation
shawn@ethemahealth.com
Text to 416-500-0020
Twitter @healthethema