So what happened since the letter of intent for the latest iteration of ARIA. Look at the glowing numbers projected in the 2019 letter of intent? The deal was supposed to be close by April 2020 but didn't get it some until this past June.
They have been losing money on this since 2017. How did this company manage to get to nearly $46 million accumulated deficit in such relatively short period of time. These loses are the source of the toxic debt conversions taking place now.
The letter of intent stated $20 million in projected revenue with a $3.6 million EBITDA at the previous west Palm location with 174 beds. Fast forward to the first report for ARIA at the new location with a EBITDA of $47,359 for the quarter.
Ethema to Focus on Acquisitions for Growth Strategy
West Palm Beach, FL, Dec. 24, 2019 (GLOBE NEWSWIRE) -- via NEWMEDIAWIRE -- 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. Under the terms of the LOI the Company would be required to enter into a binding agreement by February 29, 2020 and be closed by April 30, 2020. The purchase price will be determined during the due diligence process and is subject to agreement by both parties.
"The segmented information for the ARIA treatment center was an EBITDA of $47,359 for the quarter. Revenue is recorded based on the adjusted gross billing for the period. The facility has been averaging a net collection of gross billings at a rate of approximately 13%."
Same story different year. The PR from last year is actually better that the latest one. Building up to 54 beds and had 174 last year at the Previous location. Whay a difference a year makes.
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