Ethema Closes on Multi-Million Dollar Treatment Center
July 12 2021 - 11:53AM
InvestorsHub NewsWire
WEST PALM BEACH, FL -- July 12, 2021 -- InvestorsHub 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.
For information please contact:
Ethema Health Corporation
Text to 416-500-0020
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