Business
Ethema Signs LOI to Acquire Addiction Recovery Care (ARC)
WEST PALM BEACH, FL - October 23, 2025 (NEWMEDIAWIRE) - Ethema Health Corporation (OTC: GRST) ("Ethema" "GRST" or the "Company"), and Addiction Recovery Care LLC ("Vendor") entered into a Letter of Intent ("LOI") to purchase certain of the assets and...
About this update from Ethema Health Corporation
[{"type":"image","caption":"","headline":"Ethema Terminates LOI","size":{"original":{"width":140,"height":49,"url":"https://media.zenfs.com/en/newsmediawire_165/642d7e6f0e63479768dc8614360c8c04"},"resized":{"url":"https://s.yimg.com/ny/api/res/1.2/JLJID3eLVkCneGUzViUcnw--/YXBwaWQ9aGlnaGxhbmRlcjt3PTIxMDtoPTc0O2NmPXdlYnA-/https://media.zenfs.com/en/newsmediawire_165/642d7e6f0e63479768dc8614360c8c04","width":140,"height":49}}},{"type":"text","content":"WEST PALM BEACH, FL - October 23, 2025 (NEWMEDIAWIRE) - Ethema Health Corporation (OTC: GRST) ("Ethema" "GRST" or the "Company"), and Addiction Recovery Care LLC ("Vendor") entered into a Letter of Intent ("LOI") to purchase certain of the assets and separate entities operating under the ARC brand name in Kentucky. The Letter of Intent is to purchase certain of the assets of the ARC in-patient facilities in Kentucky operating in Inez, Pikeville, Owensboro and Ashland, along with out-patient facilities in Kentucky operating in Prestonsburg, Mount Sterling, Louisa, Ashland and Lexington. The separate entities include a Psychiatric Hospital, a Pharmacy, a Medical Laboratory and a Rural Health Clinic. The addiction treatment and psychiatric facilities have a capacity of approximately 900 patients. There are likely to be related real estate transactions involved in the acquisitions which will remain outside of the Company but could be utilized to generate substantial new equity for the Company.","length":1054,"tagName":"p"},{"type":"text","content":"FINANCING ","length":9,"tagName":"p"},{"type":"text","content":"The purchase price of the acquisitions will be funded with approximately 25% in cash, 25% in a vendor note and 50% in equity linked funding from the vendor. The cash portion will be raised by issuance of new equity and the proceeds from sale and subsequent leasing of certain of the ARC facilities. The Company has used real estate sale and subsequent leaseback transactions to finance its Florida operations in 2023.","length":417,"tagName":"p"},{"type":"text","content":"STRUCTURE","length":9,"tagName":"p"},{"type":"text","content":"The Company will create a new entity ("NewcoARIA") to acquire the ARC assets and separate entities and will ultimately also hold the Company's existing Florida and Kentucky treatment entities. NewcoARIA will be initial...