Ethema Granted Full Licenses, and Updates Progress
Aria has been operating with probationary licenses since Ethema closed on the acquisition of ARIA on July 1, 2021.
West Palm Beach, FL, Sept. 24, 2021 (GLOBE NEWSWIRE) -- via NewMediaWire -- Ethema Health Corporation (OTCPINK: GRST) (“Ethema” “GRST” or the “Company”) is pleased to announce that on September 23, 2021 the Department of Children and Family Services of Florida has issued the full licenses for all five levels of care for Evernia Health Center LLC (“ARIA”) after completing its audit. Aria has been operating with probationary licenses since Ethema closed on the acquisition of ARIA on July 1, 2021. ARIA scored very high on the DCF grading scale. The licenses are effective for one year from June 30, 2021, when the probationary licenses were issued, to June 30, 2022, at which time a further audit will be conducted to maintain licensing. Thereafter an audit will be conducted every three years.
In the last three months since closing on the acquisition, ARIA has faced several challenges including the DCF auditing process, all of which have been met and overcome. In mid-July several clients contracted Covid-19 while under Partial Hospitalization care of ARIA. ARIA temporarily halted intakes to its PHP program while these clients were quarantined and recovered. This temporary pause resulted in a temporary dip in billings which did not affect overall profitability. Other than this soft period, admissions and census levels have remained very high since the acquisition took place. The Company will be reporting on the results of the third quarter in its Q3 SEC filings. This performance was admirable given the fact that July and August tend to be soft months in the Addiction Treatment industry in Florida. ARIA continues to run a very Covid-safe facility.
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.
The Company also faced the choice of repaying a convertible note debt held by Geneva Roth Remark Holdings that would become convertible on September 3, 2021. This debt, which was approximately $72,000.00 was repaid, eliminating yet another convertible debt instrument form the Company Balance sheet. The Company continues its efforts to eliminate harmful debt and building shareholder value with its treatment center in West Palm Beach.
Another positive note for the Company and ARIA was the announcement on August 31, 2021 that the City and County of West Palm Beach were donating large blocks of land for the development of a new Graduate Program Campus of the University of Florida (see link below). These lands are immediately abutting and across the street from the ARIA campus. This brings significant value to the ARIA property. ARIA has an option to purchase the property in its lease, which it intends to exercise. The Company is in talks with various investors on partnerships for the acquisition of the property. This opportunity is a windfall for the Company and it is going to determine the best course of action for realizing on this opportunity.
Mr. Shawn Leon, Company CEO, reported, “We are extremely pleased with all of the success our team has had in Florida. We faced challenges and have met them all head on with success each time. We are in the middle of an extremely exciting development in West Palm Beach and well-positioned to continue our efforts to eliminate debt while building shareholder value. We look forward to our future quarterly reports showing vast improvements to the balance sheet and income statement.”
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 .
About University of Florida
Please see link about the initial report on the announcement of the University of Florida expansion.
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Ethema Health Corporation
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