Addiction Recovery Institute of America ("ARIA") receives Full License for Inpatient Detoxification and Residential Level 1 at its Boca Raton facility

Rhea-AI Summary

Ethema Health 's subsidiary ARIA received a full license for inpatient detoxification and Residential Level 1 facility in Boca Raton on October 21, 2024. The ARIA Boca facility features 11 detox beds and 12 residential beds, increasing total Florida bed count to 85. While Q3 revenue from ARIA Boca was delayed pending insurer contract updates, ARIA's Q3 2024 revenues grew 18% from Q2 2024 and 30% from Q3 2023. The company expects ARIA Boca revenue generation in Q4 2024 and plans to complete the Edgewater Recovery center acquisition in Kentucky during the same quarter. Management aims for an uplisting in H1 2025.

Positive

• ARIA subsidiary Q3 2024 revenue increased 18% QoQ and 30% YoY
• Full licensing obtained for new Boca Raton facility, adding 23 beds to total capacity
• Total bed capacity in Florida increased from 62 to 85 beds
• Pending acquisition of Edgewater Recovery center in Kentucky to expand operations

Negative

• Delayed revenue generation from ARIA Boca facility due to insurance contract requirements
• Operational costs for ARIA Boca impacting Q3 results without corresponding revenue

WEST PALM BEACH, Fla., Oct. 24, 2024 /PRNewswire/ -- Ethema Health Corporation's (OTCPINK: GRST) ("Ethema" "GRST" or the "Company"), wholly owned subsidiary ARIA, received its full license to operate an inpatient detoxication and Residential Level 1 facility on October 21, 2024 from the Department of Children and Family Services for our new facility located at 899 Meadows Avenue, Boca Raton, Florida ("ARIA Boca"). 

A probationary license was received on August 3, 2024 which allowed the facility to operate and then be audited by the Department of Children and Family Services. The audit occurred on October 3, 2024 and the permanent license was issued on October 21, 2024.

The ARIA Boca facility is a two-floor treatment center licensed for 11 beds of Inpatient Detoxification and 12 Beds of Residential Level 1. We have submitted the full license to our contracted insurers to begin treatment of insured patients at our ARIA Boca location. Our total bed count in Florida increases from 62 to 85 with 47 for Detox/Residential and 38 for PHP/IOP.

The Company previously reported that ARIA Boca would be revenue generating in the third quarter, anticipating that we would bill existing in-network insurers for our clients using the probationary license, which turned out not to be the case. Revenue will be generated from ARIA Boca as soon as the insurers add the facility to our contracts, we anticipate we will generate revenues from ARIA Boca in the 4^th quarter of 2024.

Ethema's third quarter results will be reported in mid-November. Our ARIA subsidiary increased revenues for Q3 2024 by approximately 18% over Q2 2024 and an impressive approximately 30% over Q3 2023.

The Company recently announced entering into a binding Asset Purchase Agreement for Edgewater Recovery center located in Kentucky, we anticipate that we will close on the acquisition and the Kentucky operations will be added to our results in the 4^th quarter of 2024.

Mr. Shawn Leon, Company CEO reported, "The process of organic growth verses acquisition in our industry is definitely less expensive up front but takes a lot longer due to the zoning, licensing and accreditation challenges. A lot of the operational costs of the addition of the ARIA Boca location such as rent, marketing and staffing are included in our third quarter results without the benefit of the revenue. Overall, the additions we are making this year will be fully realized in our 2025 operations, showing substantial growth year of year. This growth combined with further debt reductions leading up to 2025 will fulfill our dual goals of debt reduction and growth established over the last couple of years. We look forward to establishing a healthy balance sheet which will support our efforts to complete an up-listing in the first half of 2025."  

Ethema Health Corporation (OTCPINK: GRST) operates in the behavioral healthcare space specifically 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

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SOURCE Ethema Health Corporation

FAQ

When did ARIA receive its full license for the Boca Raton facility (GRST)?

ARIA received its full license for the Boca Raton facility on October 21, 2024, following a probationary license issued on August 3, 2024.

What is the bed capacity of ARIA's new Boca Raton facility (GRST)?

The ARIA Boca facility has 11 beds for Inpatient Detoxification and 12 beds for Residential Level 1, totaling 23 beds.

How much did ARIA's revenue grow in Q3 2024 (GRST)?

ARIA's revenue grew approximately 18% compared to Q2 2024 and approximately 30% compared to Q3 2023.

When does Ethema Health expect to generate revenue from ARIA Boca (GRST)?

Ethema Health expects to generate revenue from ARIA Boca in the fourth quarter of 2024, once insurers add the facility to their contracts.