Ethema Health Corp (GRST)

[Bubae]

Shawn Leon Acquired the Kentucky operations for essentially nothing after the feds busted the previous owners. These facilities primarily provide care to Medicaid insured clients. I show in post# 51454 the problems with Medicaid in Kentucky as it pertains to the addiction treatment business. Shawn Leon promoted this deal heavily in the podcasts last year and cited the need for proceeds from the reg A offering to support both the Boca deal and the Kentucky operations. Now with the new administration the pressure has been turned up on Government fraud including that in Medicaid. You can bet that the margins are tight for the Kentucky operations and Shawn Leon could not sell that reg A last year. Now in January he filed the reverse split, cancelled shareholder voting rights, and increased the pool of preferred shares. That he has been unable to pull the trigger on the reverse split tells me that he still is unable to attract any investors interested in another reg A offering attempt again. He has been awfully quiet for someone who rolled out a series of podcasts this tim elast year promoting teh he77 out of the stock. 🤔


Bubae
Re: None
Thursday, November 21, 2024 11:18:38 AM
Post# 51480 of 51983
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=175420557

Go to 11:20 into the July podcast where Shawn Leon starts talking about the use of proceeds from the regulation "A" offering whos shares would be exempt from registration and immediately free trading. We see $500K to support the operations at Boca and another $1 million to support the operations in Kentucky.

Bubae
Tuesday, November 19, 2024 12:19:54 AM
Post# 51454 of 52279 
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=175406884

Looks like there is a reason why Ethema Health was able to acquire the Kentucky treatment centers for essentially nothing. Aside from the fact that the previous owners of the Edgewater Recovery was hit with a $2.2 million settlement over false laboratory claims I found a couple of articles dated in the past month suggesting that the addiction recovery industry in Kentucky is under pressure by industry-wide reimbursement cuts for Medicaid. Citing the Edgewater letter of intent press release of July 12th "The Kentucky operation primarily provides care to Medicaid insured clients." Beginning to see the need for the reverse split and the regulation "A" offering that is pending?

Bills aim to stop people from coming to Ky. to have Medicaid pay for addiction treatment; programs could have to get them home
By HEATHER CLOSE Published February 26, 2024 FEATURED, HEALTH POLICY, YOUR HEALTH
https://kyhealthnews.net/2024/02/26/bills-aim-to-stop-people-from-coming-to-ky-to-have-medicaid-pay-for-addiction-treatment-programs-could-have-to-get-them-home/

A bill aimed at preventing people from coming to Kentucky solely to establish residency so that they can sign up for drug treatment to be paid for by the federal-state Medicaid program passed unanimously out of the state House Health Services Committee Thursday, Feb. 22.


Legislators seek to examine Kentucky Medicaid for ways to contain costs
Kentucky Lantern | By Sarah Ladd
Published March 11, 2025 
https://www.wkms.org/government-politics/2025-03-11/legislators-seek-to-examine-kentucky-medicaid-for-ways-to-contain-costs


What could Medicaid cuts mean for Kentucky? Health professionals fear widespread effects
March 12, 2025
https://www.courier-journal.com/story/news/politics/2025/03/12/what-federal-medicaid-cuts-could-mean-for-kentucky/81337549007/