Selectis Health Reports on Capital Raise, OTA, & Purchase of Non-Controlling Interest

Rhea-AI Summary

Selectis Health, Inc. (OTC: GBCS) completed a $750,000 private offering involving 1.5 million shares at $0.50 each, aimed at enhancing working capital and acquiring a minority interest in Goodwill Hunting, LLC. This offering was oversubscribed, reflecting investor confidence in the company's growth. Selectis now fully owns Goodwill Hunting, LLC, and has taken operational control of two skilled nursing facilities previously managed by third-party operators that filed for bankruptcy. The company aims to meet NYSE American listing requirements.

Positive

• Successful completion of a $750,000 private offering, oversubscribed due to investor confidence.
• Acquisition of 100% ownership in Goodwill Hunting, LLC, enhancing asset control.
• Operational control of formerly third-party managed skilled nursing facilities positions the company for improved performance.

Negative

• Bankruptcy filings by former operators of nursing facilities indicate prior operational challenges.
• -

News Market Reaction – GBCS

+8.06%

1 alert

+8.06% News Effect

On the day this news was published, GBCS gained 8.06%, reflecting a notable positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

Private Offering

Greenwood Village, Colorado, July 14, 2021 (GLOBE NEWSWIRE) -- Selectis Health, Inc. (f/k/a Global Healthcare REIT, Inc.) (OTC: GBCS) ("Selectis" or the "Company") reported completion of a $750,000 private offering through a FINRA member placement agent. The offering consisted of an aggregate of 1.5 million shares of Common Stock at a private offering price of $0.50 per share. The offering was undertaken without registration under the Securities Act of 1933 as amended (the “Act”) in reliance upon the exemption contained in Rule 506(b) of Regulation D under the Act. The Company intends to use the funds for general working capital which included the purchase of the remaining 15% minority interest in the Company’s 85% majority interest in its Goodwill Hunting, LLC facility. Additionally, funds will be used to help manage the accounts receivable for our two recently transferred and now operated properties out of Sparta and Warrenton, GA.

“While the Company currently enjoys near-record liquidity, this private offering was done, in part, to meet the minimum net capital requirements needed to be up-listed on the NYSE American. This deal was oversubscribed, and as a result, we were able to close on the transaction very quickly. This speaks directly to the positive transformation of operations that the Company has intentionally deployed over the last year and a half, and investor’s excitement about our current and future growth prospects. Additionally, on May 23^rd stockholders voted, in favor, to change the name of the Company to Selectis Health, Inc. from Global Healthcare REIT, Inc., to execute a reverse stock split, and to buy back all fractional shares as a result of the reverse split. We believe this offering was the final step required by the NYSE to accomplish these milestones to be listed on a major exchange, and we fully expect FINRA approval on these stockholder initiatives in the very near future,” said Lance Baller, CEO of Selectis.

Purchase of Minority Interest

On May 20, 2021, the Company completed the purchase of a 15% minority interest in its subsidiary Goodwill Hunting, LLC. As a result of the purchase, the Company now owns 100% of the outstanding interest in Goodwill Hunting, LLC.

Removal of Third-Party Operator in Georgia

The Company’s wholly owned subsidiary ALT/WARR, LLC was the landlord under a lease dated as of August 18, 2015, between ATL/WARR, LLC, and C.R.M. of Warrenton, LLC d/b/a C.R.M. Warrenton Health & Rehab, LLC (“Warrenton Tenant”) governing the skilled-nursing facility located at 813 Atlanta Highway, Warrenton, Georgia, as amended.

The Company’s wholly-owned subsidiary Providence HR, LLC was the landlord under a lease dated as of dated as of August 18, 2015, between Providence HR, LLC, and C.R.M. of Sparta, LLC d/b/a C.R.M. Providence Health & Rehab, LLC (“Sparta Tenant”) governing the skilled-nursing facility located at 60 Providence Street, Sparta, Georgia, as amended.

Both Tenant entities are affiliates of the same individual professional operator.

Effective January 27, 2021, the Company served a Notice of Termination under both of the foregoing leases. The Notice of Termination was based upon numerous Events of Default under both leases, including, but not limited to, the Tenant’s failure to pay required Provider Fees (“Bed Taxes”), which had been accruing. The Company previously reported these events in its Current Report on Form 8-K dated January 27, 2021.

In responses to the Company’s actions, both Warrenton Tenant and Sparta Tenant filed voluntary petitions in bankruptcy seeking Chapter 11 protection in the US Bankruptcy Court for the Middle District of Georgia, Case Nos. 21-50200 and 21-50201.

Effective June 11, 2021, Warrenton Tenant and Sparta Tenant voluntarily entered into a Lease Termination Agreement, and Operations Transfer Agreement and Interim Management Agreement with newly formed affiliated subsidiaries of the Company: Selectis Warrenton, LLC and Selectis Sparta, LLC, which both companies were formed for the purpose of assuming operational control of the two skilled nursing facilities. On June 18, 2021 the Bankruptcy Court approved all three agreements.

As a result of the foregoing, the Company has executed operating leases with the new, wholly-owned subsidiaries and assume operational control of both skilled nursing facilities.

“We are extremely pleased that we were able to come to an agreement with the former operators of these two facilities. Both Selectis and our attorneys have been working diligently on an optimal outcome for the Company, and I am proud of what we were able to achieve,” stated Lance Baller. “We can now look forward to the work ahead as we transition the operations of these properties to our wholly-owned subsidiaries. We feel confident that our proven operating model will help deliver high-quality care to our residents and contribute handsomely to our bottom-line. Additionally, with the purchase of the Goodwill Hunting, LLC minority interest, we now own 100% of all portfolio properties for the first time in the history of the Company. With these three transactions, and the capital raise, I believe we are well positioned to deliver the kind of care our patients have come to expect from us and the operating results which we feel confident will help drive stockholder value for our shareholders.”

For Further Information Contact:
Brandon Thall
investors@selectis.com

FAQ

What is the recent funding announced by Selectis Health (OTC: GBCS)?

Selectis Health completed a $750,000 private offering to improve working capital and acquire a minority interest in Goodwill Hunting, LLC.

How does the recent private offering impact Selectis Health's future growth?

The oversubscribed private offering reflects strong investor confidence and supports Selectis Health's plans for up-listing on the NYSE American.

What changes have been made to the ownership structure of Goodwill Hunting, LLC?

Selectis Health now owns 100% of Goodwill Hunting, LLC after completing a purchase of a 15% minority interest.

What operational changes has Selectis Health made in nursing facilities in Georgia?

Selectis Health assumed operational control of two skilled nursing facilities in Georgia after the previous operators filed for bankruptcy.

What steps is Selectis Health taking to comply with NYSE American listing requirements?

The company is meeting minimum net capital requirements through the recent private offering, which is a step toward NYSE American listing.