Ethema Closes on Multi-Million Dollar Treatment Center
WEST PALM BEACH, Fla., July 12, 2021 (GLOBE NEWSWIRE) -- Ethema Health Corporation (OTCPINK: GRST) (“Ethema” “GRST” or the “Company”), is pleased to announce that the acquisition of the majority interest in the multi-million dollar Evernia Health Center LLC (“ARIA”) which operates the ARIA addiction treatment center in West Palm Beach, Florida closed effective July 1, 2021. The new licenses required to be issued by the Department of Children and Families of Florida when there is an ownership change in an addiction treatment center operator, were received by ARIA on June 30, 2021 for all five levels of addiction treatment care that ARIA provides. The Company now owns 75% of the common shares of American Treatment Holdings, Inc. (“ATI”) which owns 100% of the interest in Evernia Health Center, LLC. The Vendor retains 25% of the shares of ATI. In addition to advances in the form of an operating loan that the Company had advanced to ARIA as part of the consideration, the Company also issued to the Vendor 100,000,000 shares of Ethema common stock and agreed to pay the vendor $50,000.00 in cash. The cash portion has been partly paid and the balance is expected to be paid within the coming month. ARIA will generate approximately $1.8 million in revenue for the second half of 2021 based on current run rates. The Company will be looking to expand revenues for ARIA through expansion of the current facilities.
At the time of closing the Company had loaned ARIA approximately $1.1 million to fund its start-up all of which it had borrowed from various lenders over the previous 15 months. A large portion of the loans were variable rate loans and most of these loans were either repaid with new longer-term loans with fixed conversion prices, or have been partly converted to equity. Since the beginning of the year 786,429,791 new shares have been issued of which 100,000,000 were for the acquisition, 102,353,037 were for warrants related to the financings and 584,076,754 has been for debt conversion eliminating over $550,000 in debt.
The Company retains the right to repay the debt it still owed and expects to begin using the cash it receives from ARIA as repayments of its loans to pay down more debt in order to reduce further conversions. The Company does expect to see some additional debt converted to equity before repaying all of the debt but the conversions should be greatly reduced.
Mr. Shawn Leon, the CEO of the Company stated, “This closing represents a major milestone in our restructuring which began in early 2020. We are returning to profitability and expect to be able to restore the balance sheet to the strong position we previously had. I am very excited to be planning further expansion as our restructuring takes hold.”
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.
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Ethema Health Corporation
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