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 23rd 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