Ethema Health Corp (OTCMKTS:GRST) Stock Makes a Bullish Move On Unusual Volume
Ethema Health Corp (OTCMKTS:GRST) stock was in focus as the stock ended sharply higher on Friday after the recent consolidation.
Market Action
In the previous trading session, GRST surged 39% to $0.0025. A total of 210.86 million shares traded for the session hands, well above its average volume of 27.24 million shares. The stock opened at $0.0019 and moved in a range of $0.0018 – 0.0033.
Key Trigger
Ethema Granted Full Licenses, and Updates Progress
GRST announced 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.
Key Quote:
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.”
