Curated News
By: NewsRamp Editorial Staff
October 23, 2025

Ethema Health to Acquire ARC Facilities in Major Kentucky Expansion

TLDR

  • Ethema Health gains strategic advantage by acquiring ARC's Kentucky facilities, creating a statewide network with forecasted revenues exceeding $100 million in 2026.
  • Ethema Health will purchase ARC's Kentucky assets through NewcoARIA using 25% cash, 25% vendor note, and 50% equity-linked funding with planned IPO on senior U.S. exchange.
  • This acquisition expands addiction treatment access across Kentucky, creating a comprehensive statewide network to provide better care for approximately 900 patients.
  • Ethema Health's acquisition includes psychiatric hospitals, pharmacies, and rural health clinics across multiple Kentucky cities to combat substance use disorders statewide.

Impact - Why it Matters

This acquisition represents a significant consolidation in the addiction treatment sector, potentially improving access to comprehensive care for thousands of patients across Kentucky. As the opioid crisis continues to affect communities nationwide, the creation of a statewide network combining ARC's established facilities with Ethema's treatment expertise could lead to more standardized, high-quality care delivery. For patients and families struggling with substance use disorders, this expansion means greater accessibility to integrated services including psychiatric care, pharmacy services, and medical laboratory support within a single treatment network. The transaction also signals growing investor confidence in the behavioral healthcare sector, potentially attracting more capital to address the critical shortage of addiction treatment resources that has persisted through the ongoing substance abuse epidemic.

Summary

Ethema Health Corporation (OTC: GRST) has taken a significant step toward expanding its behavioral healthcare footprint by signing a Letter of Intent to acquire substantial assets from Addiction Recovery Care LLC (ARC) in Kentucky. The proposed acquisition includes multiple in-patient facilities located in Inez, Pikeville, Owensboro, and Ashland, along with out-patient centers in Prestonsburg, Mount Sterling, Louisa, Ashland, and Lexington. This strategic move also encompasses several specialized entities operating under the ARC brand, including a Psychiatric Hospital, Pharmacy, Medical Laboratory, and Rural Health Clinic, collectively representing a treatment capacity of approximately 900 patients. The transaction structure involves creating a new entity called NewcoARIA to facilitate the acquisition and consolidate Ethema's existing Florida and Kentucky treatment operations under one umbrella.

The financial arrangement for this substantial healthcare consolidation is structured with approximately 25% cash, 25% vendor note, and 50% equity-linked funding from the vendor. Ethema plans to raise the cash portion through new equity issuance and strategic real estate transactions, including sale-leaseback arrangements similar to those used to finance their Florida operations in 2023. The company's leadership, including CEO Shawn Leon, emphasized that discussions leading to this agreement began in January 2025 and represent a strategic combination of ARC's established assets with Ethema's existing ARIA Kentucky operations. This merger aims to create a comprehensive statewide treatment network that could significantly influence addiction treatment standards across Kentucky while maintaining the highest levels of safety and compliance.

Both companies' leadership expressed strong confidence in the proposed transaction, with ARC CEO Tim Robinson noting that extensive discussions led to the conclusion that combining assets with ARIA would best serve both clients and staff. The revenue projections underscore the transaction's scale, with existing Florida and Kentucky entities forecast to generate approximately $25 million in 2026, while the acquired ARC assets are projected to contribute over $100 million. This information was originally released on www.newmediawire.com, highlighting the significant market impact of this healthcare consolidation. The proposed structure not only simplifies the acquisition process but also positions NewcoARIA for a potential Initial Public Offering on a senior U.S. exchange, creating substantial value for stakeholders while expanding critical addiction treatment services across Kentucky.

Source Statement

This curated news summary relied on content disributed by NewMediaWire. Read the original source here, Ethema Health to Acquire ARC Facilities in Major Kentucky Expansion

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