West Palm Beach, FL, April 04, 2023 (GLOBE NEWSWIRE) -- via NewMediaWire – Ethema Health Corporation (OTCPINK: GRST) (“Ethema”, “GRST” or the “Company”), on March 31, 2023 filed the 10-K 2023 annual report. The Company’s Evernia subsidiary continued its growth and had an operating income of $0.5 million, including a depreciation and amortization charge of $0.4 million ($0.9 million before depreciation and amortization), marginally below our target for 2022. The Company’s wholly owned subsidiary, PB Billing LLC which started operating in May 2022, had an operating income of $0.1 million for the year. After corporate overhead expenses the Group achieved an operating profit of $0.6 million, including depreciation and amortization of $0.5 million ($1.1 million before depreciation and amortization).
The disposition of the two previous non-core operating subsidiaries that are reflected in the year end statements resulted in a net gain for the Company due to the elimination of liabilities carried in those subsidiaries. These certain liabilities were assumed by our CEO, upon acquisition of the previous subsidiaries. Due to the related party nature of these transactions, the gain of $0.6 million is reflected in the Statement of changes in stockholder’s deficit. The assumption of these liabilities by our CEO had a positive impact on our balance sheet in line with our drive to eliminate debt and liabilities.
The Company has entered into a definitive agreement for the acquisition of the target Company it previously announced it was working on. A deposit has been posted with an escrow agent pending the final due diligence to be completed mid-May with a final closing date set for July 1, 2023. The Company will provide more details when the agreement goes firm after final due diligence. The company is located outside of Florida in the South Eastern United States.
The acquisition of the real property in which Evernia operates in West Palm Beach was deferred for up to four months from the original closing date of February 1, 2023, as the Company is exploring different financing alternatives that could be used to further reduce debt and provide capital for the acquisition. This would require less equity in the near term which would ultimately be less expensive for the Company.
Mr. Shawn Leon, Company CEO, reported, “We are pleased with last year’s results and although we had a very soft December and January, our Evernia operation is doing very well and we have had our largest average daily census ever in March, 2023. We managed to improve our balance sheet with the divestiture of two of our non-core subsidiaries and we are positioning the group for further growth with the potential acquisition of the target entity mentioned above. The real property transaction may provide us with sufficient capital to reduce debt and contribute to our acquisition and expansion costs. We will know the outcome of our strategy in April. If we are able to consummate the acquisition contemplated above, we expect revenues and operating results for 2023 to increase substantially over 2022.”
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 .
Notice Regarding Forward-Looking Statements
The information contained herein includes forward-looking statements. These statements relate to future events or to our future financial performance, and involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance, or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. You should not place undue reliance on forward-looking statements since they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond our control and which could, and likely will, materially affect actual results, levels of activity, performance or achievements. Any forward-looking statement reflects our current views with respect to future events and is subject to these and other risks, uncertainties and assumptions relating to our operations, results of operations, growth strategy and liquidity. We assume no obligation to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.
For information please contact:
Ethema Health Corporation
shawn@ethemahealth.com
Text to 416-500-0020
Twitter @healthethema
