Ethema Posts Strong Revenue Guidance for Second Quarter

Rhea-AI Summary

Ethema Health Corporation (OTCPINK: GRST) anticipates a 13% revenue increase for Q2 2022 compared to Q1, attributed to new claims and historical collection trends. The company has expanded capacity with 10 new beds and expects 62 beds available in Q3 following renovations. Ethema is formalizing debt extensions and expects to start repayments from cash flow in Q3. CEO Shawn Leon expressed optimism for growth and has integrated a new billing subsidiary, contributing additional profits.

Positive

• Expected 13% revenue increase for Q2 2022 compared to Q1.
• Addition of 10 new beds, increasing capacity to 62 beds in Q3.
• Strong cash flow anticipated to enable debt repayments starting Q3.
• Successful integration of a new billing subsidiary expected to enhance profits.

Negative

• Delay in adding 4 more beds due to renovation issues.
• Challenges in staffing to meet growth demands.

West Palm Beach, FL, June 30, 2022 (GLOBE NEWSWIRE) -- via NewMediaWire -- Ethema Health Corporation (OTCPINK: GRST) (“Ethema” “GRST” or the “Company”) expects its ARIA subsidiary to report a revenue increase of 13% for the second quarter 2022 over the first quarter 2022 when the Company files its Q2 financials with the SEC in July.  This expectation is an estimate based on claims submissions to date and the historical collections percentage averages experienced in recent history.  The addition of 10 new beds in the newly leased neighboring property came on-line in the first week of June and have been steadily filled since that time.  The expected addition of an additional 4 beds has been delayed due to the delays in completion of the first-floor commercial office space renovation.  This renovation is complete and an occupancy permit is expected to be issued in the first week of July.  The third quarter will therefore have an availability of 62 beds for the full quarter.  

The Company also reports that it is in the process of formalizing extensions on its debts, some of which were coming due on June 30.  The Company is experiencing strong cash flow and expects to be able to begin debt repayments in the third quarter from cash flow.  The final terms will be announced as soon as the documentation on extensions is complete.   

Mr. Shawn Leon, Company CEO, reported, “We are pleased with the continued growth in the second quarter and look forward to an even stronger third quarter as we adjust to the growth the additional beds have given us.   Our Company, like many others across the country, is finding it challenging to add staff to meet the demands of our growth.  We have been able to retain all of our core staff and have successfully integrated our new billing subsidiary during the quarter, which will contribute additional profit as a stand-alone company.  We will continue to focus on growth while improving our balance sheet.”  

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

FAQ

What is Ethema Health Corporation's revenue expectation for Q2 2022?

Ethema Health Corporation expects a 13% revenue increase for Q2 2022 compared to Q1.

How many beds will Ethema Health Corporation have available in Q3 2022?

Ethema Health Corporation anticipates having 62 beds available for the full third quarter.

What is the status of Ethema Health Corporation's debt repayment?

Ethema Health Corporation plans to begin debt repayments in Q3 2022 from strong cash flow.

What challenges is Ethema Health Corporation facing in staffing?

Ethema Health Corporation is experiencing challenges in adding staff to meet growth demands.

When will Ethema Health Corporation announce final terms for debt extensions?

The final terms for the debt extensions will be announced once the documentation is complete.