Ethema Acquires Larger Interest in ARIA Treatment Center
9:00 AM ET 4/29/21 | GlobeNewswire
West Palm Beach, FL, April 29, 2021 (GLOBE NEWSWIRE) -- via NewMediaWire -- Ethema Health Corporation (OTCPINK: GRST) ("Ethema" "GRST" or the "Company") is pleased to announce that the Company will be increasing its stake in the ARIA treatment center by executing a revised purchase option as it nears the closing of the purchase of a majority interest in the ARIA treatment facility in West Palm Beach, Florida.
The ARIA facility has been become profitable and cash flow positive in the first few months of operation after it became an in-network provider to Blue Cross and Blue Shield of Florida, Inc. ("Florida Blue"). ARIA is contracted to provide services to holders of HMO policies under the Florida Blue, My Blue and other Blue Cross brands.
The construction build-out of the first floor of the treatment center is underway and will soon allow for an increase to the number of beds the treatment center can provide on its second and third floors of the center.
The Bed Capacity will increase from 40 to 52 beds. ARIA has hit a high occupancy of 36 beds recently and the additional beds will be needed in the near future.
The Company has worked together with the Seller to create a tremendous platform for growth with the ARIA treatment center and together crafted a revision to the original agreement that gives the Company a LARGER SHARE OF THE BUSINESS and more closely aligns the interests of the Seller with the shareholders of the Company.
The Company will increase its ownership a well in the Treatment Center from 51% to 75% and in addition to a payment of $50,000.00 for the added interest, the Company will issue to the Seller one hundred million shares of the Company common stock. The change of ownership requires the approval of the Florida Department of Children and Families and it is expected to close in late May, 2021.
The Company will be able to report the financial operations of the center in its second quarter filings.
Since the restructuring that occurred in June and July of 2020, The Company has created significant value for the shareholders and the revised agreement further increase the value to the shareholders.
The Company required debt capital to fund the start-up of the new treatment center and now must turn its attention to managing the repayment of the debt while maintaining shareholder value.
The Company expects to make significant progress on the debt in the coming months while it continues to grow the treatment center business.
The Company announced MOU with Sparta Capital Ltd. is moving towards more definitive agreements on a structure for a joint venture to roll out a multi-faceted solution to creating safe work spaces.
The ARIA treatment center has continued to have great success in the use of Covid Clear (hypochlorous acid) in the treatment of the of the working and living space at the treatment center.
"We have seen first hand the effectiveness of the use of hypochlorous acid in protecting our workspace and we are excited to be part of an effort to bring this solution to other workplaces in North America," said Company CEO Shawn Leon.
"Restructuring the Company and creating a tremendous treatment center asset during the Pandemic has been a challenge. We have succeeded and are now poised to make even more significant strides as the Company and the economy start to get back to work safely."
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 .
For further information contact:
Ethema Health Corporation
Text to 416-500-0020
shawn@ethemahealth.com
Twitter @healthethema
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April 29, 2021 09:00 ET (13:00 GMT)
