If you are tired of being a bag holder or investing in companies that have already soared 750% in the past week. Read this DD. All of it. This is a massive opportunity in a new sector
$GRST :
Share price : $0.0073
Market Cap : 13.44M
What is Ethema Health Corporation? ($GRST)
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 eight years and has had much success with in-patient treatment for adults. Ethema will continue to develop world class programs and techniques for North America.
Ethema Health Corporation (GRST)
$GRST currently has 2 subsidiaries :
- Addiction Recovery Institute of america (ARIA)
- Drug and alcohol treatment facilities
- Real estate
- COVID CLEAR
- Provides disinfectant(COVID Clear solution) to keep customers, employees, and your family clear of the COVID-19 virus as well as other harmful bacteria and germs
- And CDC guideline training for companies staff allowing them to use FDA approved antibody test
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“Okay but why should I invest ?”
The Addiction Recovery Institute of america (ARIA) is why :
“Ethema Health (GRST) has been issued a license from Florida’s Department of Children and Family Services to operate addiction treatment services at its location at 950 Evernia Street, West Palm Beach. The license includes detox, residential, partial hospitalization, intensive out-patient, and out-patient services which allows Evernia to offer a full continuum of care at its location.
$40,000,000.00 in Gross potential income
“How ?”
- Evernia Health Center in West Palm Beach, Florida, is one of the facilities that is owned by GRST.
- The facility is 21,000 SQ FT and has 168 beds.
- Each of the beds in the facility is worth $1,000,000 which equates to a value of $168,000,000.
“Why is a bed worth so much ?”
A single bed in a rehab facility can bring up to $20,000 per month ;
“Standard inpatient addiction treatment facilities cost between $14,000 and $27,000 for a 30-day program, and outpatient treatment can range from free to $500 per session.”
https://www.rehabs.com/addiction/how-much-does-rehab-cost/
“How did I come up with $40,000,000 and what is my p/t ?”
My conservative p/t is $0.12 per share (a 1200% increase) and this is why :
If the facility has a 40m gross potential and is at 90% occupancy(Considering the fact that there is a shortage of facilities and therapists) ; the adjusted annual revenue would be $36,000,000.00
$36,000,00.00
x 25% (Net income based on the high demand and low supply)
$9,000,000.00 in net annual income
With 1.8b of outstanding shares the EPS(earnings per share) would be $0.005
With a PE of 25 the price would then be of $0.12 per share
A 1200% increase!
But let's be honest, in this bull market this will probably skyrocket to 1$+
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MASSIVELY undervalued compared to other companies
-
GRST has only 2 competitors in the pure Behavioral Health sector.
- ACHC
- OTRK
-
Each of them trade on the NASDAQ and are worth billions
- ACHC Market Cap = 4,75b up 75% since august
- OTRK Market Cap = 1,5b up 50% since august
- GRST Market Cap : 15m
The market is exploding and GRST is gonna become the 3rd major option in the $35 Billion addiction treatment industry
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ARIA Treatment Facility Fully Licensed : Jan. 13, 2021
https://www.otcmarkets.com/stock/GRST/news/story?e&id=1784097
Ethema Health Corporation (OTCPINK: GRST) (“Ethema” “GRST” or the “Company”) is pleased to announce that the audit for the full licensing of the ARIA treatment facility by the Department of Children and Family Service for Florida (“DCF”) which commenced on December 10, 2020 has resulted in the issuance of a full license for all five levels of care that ARIA provides. The issuance of the full licenses for each level of care were staggered and the full licenses for the final two levels of care were received January 12, 2021.
“What does that mean ?”
This granting of the full licenses will allow ARIA to move forward with the pursuit of in-network contracts with various insurers.
ARIA finished November and December with out-of-network gross billing of $602,200.00. The rate paid by insurers on out-of-network billings varies by insurer
“What does In-Network or out-of-network mean ?”
- When a doctor, hospital or other provider accepts your health insurance plan we say they’re in network. We also call them participating providers.
- When you go to a doctor or provider who doesn’t take your plan, we say they’re out of network.
ARIA has made an impressive $602,200.00 out-of-network just in november/december with a temporary license. But now that they are fully licensed and are able to move forward with contracts with insurers, this could grow much more quickly.
Important!!! :
On november 16, 2020, ARIA received a provider number from a from a massive Health Insurance Company : BLUE CROSS
“The Company is pleased with the progress of the new treatment center operated by Evernia Health Center LLC under the trade name of Addiction Recovery Institute of America (ARIA) and operating ahead of expectations at this very early stage. Aria has received a provider number from Blue Cross well ahead of the time expected and continues to get credentialed by other insurers as applications for reimbursements are submitted.”
https://finance.yahoo.com/news/ethema-releases-third-quarter-results-214000750.html
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Leonite Capital, a Hedge Fund, is willing to buy 20% of the outstanding shares at $0.10 per share.
https://www.otcmarkets.com/stock/GRST/news/story?e&id=1623620
“1. All existing Leonite Warrants to be exchanged with a new Leonite five year warrant granting Leonite the option to purchase equity up to 20% of the outstanding common shares at $.10 subject to adjustment. Any portion of the warrant that is exercised will reduce the remainder of the warrant remaining based on the total number of common shares outstanding at the time of the exercise. The warrant may not be exercised in the first three months of the warrant term.”
- Leonite buying 20% of the OS equates to 368,218,049 shares which equates to $36,821,805 for the transaction.
- If Leonite Capital is willing to pay $36,821,805 for something like this they are confident in where the company is going.
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Shawn Leon is a great CEO
“Why” ?
1) He believes in the company
Shawn Leon owns and bought 80.4 million shares including some at 0.079$
https://www.secform4.com/filings/792935/0001721868-18-000742.htm
2) He is rapidly growing the company
With 2 recent acquisitions of Addiction Recovery Institute of America(ARIA) and COVID CLEAR both already bringing revenue
3) He cancelled his own shares and reduced the outstanding shares by that number
“The total number of common shares issued was reduced yesterday after the CEO returned for cancellation 1,757,850 shares that were issued to him in the years 2012, 2014 and 2015 (for management fees). The CEO has never sold any shares issued for either management fees or for cash investments over the last twelve years and has not charged any management fees to the Company directly or indirectly in the last two years. The Company will be very strategic with any share issuances going forward.”
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Debt restructure and major debt has been paid off
https://www.otcmarkets.com/stock/GRST/news/story?e&id=1784097
The Company previously reported the restructuring of the debt due to Leonite Capital LLC (“Leonite”) whereby the bulk of the debt was converted to preferred shares in the Company and one of the Company’s subsidiaries, with the remainder written down to $150,000 (the “Remainder Portion”). Under this agreement the Company and Leonite agreed that there would not be any conversions at any time prior to October 31, 2020 and allowed thereafter. The company received conversion notices to convert the debt to shares and the shares were issued on December 31, 2020 and January 12, 2021 in full satisfaction of the Remainder Portion of the Leonite debt.
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Labrys Fund LP is buying 100,000,000 GRST shares
https://www.otcmarkets.com/stock/GRST/news/story?e&id=1763638
Ethema Health Corporation (OTCPINK: GRST) (“Ethema” “GRST” or the “Company”) filed a comprehensive 8-K today summarizing all previously announced debt settlements and new financings entered since May 15, 2020. This filing will be used as a reference for the upcoming Regulation A filing. The previously announced term sheet for a new financing with Labrys Fund LP was concluded and the final warrants issued in conjunction with the financing were much more favorable to the Company. The final warrant was for 100,000,000 shares instead of 183,333,333 and the exercise price was $0.00205 instead of $0.0015.
8-K : https://sec.report/Document/0001721868-20-000600/
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Positive free cash flow
The Company CEO, Shawn Leon, stated, “With these two events, the Company has positively impacted cash flow over the next three months by over $325,000.00.
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The biden plan to end the opioid crisis
https://joebiden.com/opioidcrisis/
- “Make effective prevention, treatment, and recovery services available to all, including through a $125 billion federal investment”
- Biden knows that the most important step we can take to address substance use disorders is to ensure that Americans have access to affordable, high-quality health care, including treatment for mental illnesses and substance use disorder. That’s why Biden has a plan to build on the Affordable Care Act and achieve universal coverage. In addition, Biden will redouble efforts to ensure insurance companies stop discriminating against people with behavioral health conditions and instead provide the coverage for treatment of mental illness and substance use disorders that patients and families need
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No reverse split + No more dilution
https://insiderfinancial.com/ethema-health-grst-a-ground-floor-opportunity/180582/
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Not a cannabis play
https://insiderfinancial.com/ethema-health-grst-a-ground-floor-opportunity/180582/
The behavioral health sector (addiction treatment) hasn’t gotten a lot of coverage compared to cannabis, bitcoin and EV sectors. Ethema Health is the first pure-play opportunity that represents a ground floor opportunity in a multi-billion-dollar industry
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GRST is ready to acquire more companies
GRST already has 2 subsidiary companies but is ready to acquire more companies with funding from Form 1-A under Regulation A.
*More companies means more revenue
https://www.otcmarkets.com/stock/GRST/news/story?e&id=1763638
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FLORIDA ADDICTION TREATMENT CENTER TOUR
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Technical analysis
Technical analysis by ilovestock85
https://www.tradingview.com/chart/GRST/0FzvCk1E-GRST-UPDATED-ANALYSIS/
$GRST: After a successful breakout from the cup and handle formation above .003/.0042, $GRST reached highs nearing the psychological level of . 01 , and leveled off to retest the uptrend and found solid support at the breakout levels from the previous formation. We are now swinging back to retest the penny level, and when broken this time around we should see a parabolic move towards .03, many new developments including $grst going current on otc markets, aria facility receiving its license and opening its doors to patients. much more marketing is coming from the company to promote the facility and begin generating revenues.
Technical analysis by LOVE*PINK
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TLDR? : This stock is gonna explode and 1 cent/share is nothing compared to what is about to happen
P/T anywhere from 0.12 to 1$
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Credit :
Stervc https://investorshub.advfn.com/boards/profilea.aspx?user=1551
LOVE*PINK https://investorshub.advfn.com/boards/profilea.aspx?user=135840
Thank you guys for the deep DD
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I'll answer questions in the comments
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