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Press release content from Globe Newswire. The AP news staff was not involved in its creation.
PRESS RELEASE: Paid content from Globe Newswire
Press release content from Globe Newswire. The AP news staff was not involved in its creation.

Ethema Releases Third Quarter Results

November 23, 2021 GMT

West Palm Beach, FL, Nov. 22, 2021 (GLOBE NEWSWIRE) -- via NewMediaWire -- Ethema 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.   

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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. 

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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