Ethema Health Corp (GRST)

[Bubae]

That Ethema (GRST) is a new start-up is a false narrative. The didn't get to a $46 million accumulated deficit just buying into the current ARIA, AKA Evernia, AKA ATHI, AKA ATI. All referenced in the press releases and filings for the purpose of confusion in my opinion. This story goes all the way back to 2017 and per the Q3 filing it delivered an EBITDA of $47K. Where do they go from here after the additional 10 beds without more capital infusions. This is a very expense business model that delivers very little free cash flow.


December 2020 debt restructuring 8K filing.
https://sec.report/Document/0001721868-20-000600/

In the 10K annual 2020 filing Ethema is a self described "investment holding company" with 2 employees.

2020 10K annual filing
https://sec.report/Document/0001721868-21-000220/


Employees
As of December 31, 2020, Ethema Health Corporation had 2 employees.

Corporate Structure

The Company consists of the following entities:

· Ethema Health Corporation (“Ethema”) (Parent company);


Ethema is the publicly traded investment holding company.



Ethema to Focus on Acquisitions for Growth Strategy
December 24, 2019 10:01 ET | Source: Ethema Health Corporation
https://www.globenewswire.com/en/news-release/2019/12/24/1964449/0/en/Ethema-to-Focus-on-Acquisitions-for-Growth-Strategy.html



Ethema Health Corporation (OTCQB: GRST) (“Ethema” “GRST” or the “Company”), a provider of healthcare services, has announced that it has signed a non-binding Letter of Intent to acquire a majority interest in an addiction treatment company. The acquisition target will have approximately $20 million in revenue for 2019 and an EBITDA of $3.6 Million.

“This is a company and owner that we are familiar with and first attempted to acquire in 2014. They are well run and have the infrastructure in place that can support growth.

“Market conditions in Florida have made it very difficult to operate profitably due to very costly marketing to attract clients and very aggressive behavior from insurance companies towards Florida based providers. The Company has not generated the client levels necessary to fill the current location and must make changes to reduce its operating costs.”



Ethema Health Completes First Deposits on Real Estate Purchase of 174 Bed Treatment Facility
November 06, 2017 08:00 ET | Source: Ethema Health Corporation
https://www.globenewswire.com/news-release/2017/11/06/1246898/0/en/Ethema-Health-Completes-First-Deposits-on-Real-Estate-Purchase-of-174-Bed-Treatment-Facility.html

“This property adds to the property the Company acquired in Delray Beach, Florida earlier this year where the Company has moved its principal office and where it operates a licensed treatment facility with 32 beds of community housing.”

“Mr. Shawn Leon, president and CEO of the Company, said, "We are very pleased with the level of interest the Company has received in the last few days since we first reported the transaction. Scientists, Doctors, researchers and collaborators have expressed their interest in working with the Company as it seeks to establish a center of excellence in the field of addiction treatment…”


Ethema Expands into 174-Bed Florida Facility
DELRAY BEACH, FL, June 07, 2018 (GLOBE NEWSWIRE)

https://www.globenewswire.com/fr/news-release/2018/06/07/1518496/0/en/Ethema-Expands-into-174-Bed-Florida-Facility.html

“Mr. Shawn Leon, president and CEO of the Company, said, "It has taken us longer than we anticipated to be able to move forward with this jewel of a property, but we are now well underway with our licensing to be able to offer a full continuum of care to our clients in one location...”
“…This has been our U.S. expansion goal for several years and after exploring dozens of expansion opportunities, this is by far the best opportunity that we have seen to date. ..”