My previous post about the current facility. It is my opinion based on previous statements that 54 beds means the current facility is built out even though they continue to suggest otherwise. Pay particular attention to the FAQ page.
Space at the new treatment facility The biggest problem that I have with this company aside from an expensive business model that returns very little in earnings, is their propensity for cultivating false narratives. The last press release of November 22nd suggests that there are 54 beds on the first floor. They constantly talk about the "first floor" in their press releases but the math doesn't work for 4000 square feet unless this is a homeless shelter. If you do a google drive by you can see that this fairly nondescript building has a drive through parking garage taking up half the first floor and that it has second and third floors..
So if you are only paying attention to their words in the last press release you are led to believe that they have room to expand within the currently facility and it is just a matter of purchasing it with agreement from other investors and continue to grow on the same footprint.
The FAQ page states that they have 4000 square feet to develop under the current lease. This is for staff offices, treatment group rooms and allows them to free up the second and third floors currently being used…. So they have been using the entire building according to the FAQ page. Take a look at the June 2020 press release and see that they state the facility has a capacity for 60 beds on the property.
The point is that this current facility appears to now be built out despite what was suggested in the last press release. We also know what the ARIA numbers are and they continue to borrow to operate. So what do they need now to grow? I am now suspect we see another costly letter of intent for ownership in some other facility in my opinion.
With the current share structure and story so weak I again expect a bold move now in order to continue to convert the current debt and attract further financing. That will not come until they split this stock in my opinion.
…The Company has secured term sheets from two of its existing lenders for new investments to finance the acquisition and operation of its new addiction treatment facility at 950 Evernia Street, West Palm Beach Florida…
…The construction buildout 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. 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…
…In addition, ARIA struggled to get modifications to its building permit for the buildout of the first floor of 950 Evernia Street approved by the City of West Palm Beach. These modifications were submitted at the beginning of June and were just finally approved in the third week of September. This has held up the construction of the new space which will add to capacity improvements of 10 beds. The construction is now finally proceeding full steam ahead…
Ethema Releases Third Quarter Results November 22, 2021 19:08 ET | Source: Ethema Health Corporation
What can the total bed count be? The ARIA lease includes approximately 4,000 square feet on the first floor of the building which is currently being built out for staff offices and treatment group rooms. This finished space will allow us to free up space on the second and third floor presently being used for offices and treatment and add 2 more detox beds, and 10 more partial hospitalization beds for a total of 54 beds. This is expected to be completed by September so that these extra beds should reflect in the fourth quarter numbers.
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