Selectis Health Completes Sale of Sparta and Warrenton Health & Rehabilitation Facilities in Georgia
MWN-AI** Summary
Selectis Health, Inc. has successfully concluded the sale of two skilled nursing facilities in Georgia—Providence of Sparta Health & Rehab and Warrenton Health & Rehabilitation—under its wholly-owned subsidiaries, Providence HR, LLC and Atl/Warr, LLC. The transaction, finalized on January 15, 2026, came after a Purchase and Sale Agreement (PSA) announced on December 9, 2025. The facilities were acquired by Journey Propco LLC, generating a total sale price of $13,175,000. After addressing senior mortgages, transaction costs, and a $1.3 million holdback, Selectis Health realized approximately $5.4 million in net proceeds from the sale.
The proceeds will be allocated to several areas: $475,000 to settle title issues, $1.8 million to redeem outstanding senior secured notes, $700,000 to reduce capital lines of credit for unpaid bed taxes, and another $700,000 to retire a matured mortgage on a different facility. The remaining funds will bolster the company's working capital.
Selectis Health's CEO, Adam Desmond, emphasized that this sale aligns with the company’s strategy to streamline its operations and enhance stability across its property portfolio. He announced ongoing discussions for additional strategic property sales to further unlock shareholder value.
Following the transaction, Selectis continues to operate several other healthcare facilities in Georgia, including Eastman Healthcare & Rehabilitation and Glen Eagle Nursing & Rehabilitation. The company remains committed to expanding its presence in the Southern and Southeastern United States, aiming to provide comprehensive care services for the aging population.
For further details on this transaction, the company encourages stakeholders to refer to its Form 8-K filed on January 23, 2026.
MWN-AI** Analysis
Selectis Health’s recent sale of its Sparta and Warrenton Health & Rehabilitation Facilities in Georgia marks a pivotal moment for the company amidst a strategy shift aimed at strengthening its balance sheet and operational efficiency. The transaction, finalized for approximately $13.2 million, generated net proceeds of about $5.4 million after settling debts and expenses, which will now be redirected toward enhancing overall liquidity and operational stability.
From a financial analysis perspective, this divestiture reflects Selectis Health’s proactive approach to rightsizing its business model. CEO Adam Desmond's insights into engaging in further strategic property sales indicate a commitment to optimizing asset management and focusing on high-performing facilities. This is likely to enhance profitability and strengthen the company's position in the competitive healthcare market, particularly given the demographic shifts in the American Southcentral and Southeastern regions.
Investors should consider the implications of this transaction for Selectis’s financial health. The company’s move to alleviate debt and improve cash flow by redeeming secured notes and satisfying capital liabilities positions it favorably for future growth opportunities. The intention to use remaining proceeds for working capital suggests an adaptive strategy to navigate potential market uncertainties, enhancing its resilience in the face of evolving regulatory landscapes and economic pressures.
While the outlook appears positive, potential investors should remain aware of the inherent risks discussed in the company’s forward-looking statements, such as competitive pressures and the continuing consequences of the COVID-19 pandemic on occupancy rates. As Selectis Health seeks to realign its portfolio, ongoing evaluations of its facility performance and market conditions will be critical.
In summary, Selectis Health’s strategic asset management reflects a focused intent to unlock shareholder value, making it a company to watch as it seeks to capitalize on market opportunities while mitigating risks. Investors should keep this trajectory in mind when considering their positions in the healthcare sector.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
DENVER, Jan. 23, 2026 (GLOBE NEWSWIRE) -- Selectis Health, Inc. (OTC: GBCS) ("Selectis" or the "Company") announced its wholly-owned subsidiaries, Providence HR, LLC and Atl/Warr, LLC (each a “Seller”), have completed the sale of two properties located in Georgia, including the skilled nursing facilities known as Providence of Sparta Health & Rehab (collectively, “the Sparta Facility”), located in Sparta, Georgia, as well as Warrenton Health & Rehabilitation (collectively, “the Warrenton Facility”), located in Warrenton, Georgia. This sale was officially completed on January 15, 2026 and is the consummation of a definitive Purchase and Sale Agreement (the “PSA”) originally announced on December 9, 2025.
Pursuant to the PSA, The Woods at Sparta of Journey Propco LLC (the “Sparta Facility Purchaser”) and Warrenton Woods of Journey Propco LLC (the “Warrenton Facility Purchaser”) has purchased the two facilities for an aggregate purchase price of $13,175,000. After the payment of the senior mortgages, transaction costs and a $1.3 million holdback, the Company derived approximately $5.4 million in proceeds from this sale. From those proceeds, the Company has expended:
- $475,000 to settle title issues
- $1.8 million to redeem outstanding senior secured notes
- $700,000 to reduce capital lines of credit used to pay accrued outstanding bed taxes on Sparta and Warrenton
- $700,000 to retire a mortgage on another facility that matured on December 30, 2025
The remaining balance of the proceeds will be used for general working capital.
Adam Desmond, CEO of Selectis Health, stated “The completed sale of our Sparta and Warrenton facilities affirms our commitment to rightsizing our business and has allowed us to prioritize stability across our remaining facility portfolio. Our balance sheet continues to strengthen which we expect to improve our operating results moving forward. We are actively engaged in discussions around additional strategic property sales and we will continue to evaluate future opportunities to unlock shareholder value.”
Following this sale, the Company and its wholly owned affiliates will continue to own and operate existing facilities in the state of Georgia. This includes the Eastman Healthcare & Rehabilitation and Glen Eagle Nursing & Rehabilitation facilities. The Company’s total remaining footprint is summarized below:
Remaining Facilities Post-Transaction
| Facility | Beds | Facility Type | State |
| Barnes Healthcare Skilled & Rehabilitation Center1 | 141 | Skilled Nursing | AR |
| Eastman Healthcare & Rehabilitation | 100 | Skilled Nursing | GA |
| Glen Eagle Healthcare & Rehabilitation | 100 | Skilled Nursing | GA |
| Meadowview Healthcare & Rehabilitation | 99 | Skilled Nursing | OH |
| Higher Call Nursing Center | 86 | Skilled Nursing | OK |
| Maple Healthcare & Rehabilitation | 29 | Skilled Nursing | OK |
| Park Place Healthcare & Rehabilitation | 106 | Skilled Nursing | OK |
| Southern Hills Assisted Living Facility2 | 24 | Assisted Living | OK |
| Southern Hills Rehabilitation Center2 | 106 | Skilled Nursing | OK |
| Southern Hills Retirement Community2 | 90 | Independent Living | OK |
For more information on the transaction, please see the Company’s associated Form 8-K disclosure, filed on January 23, 2026.
About Selectis Health
Selectis Health owns and/or operates healthcare facilities in Arkansas, Georgia, Ohio, and Oklahoma, providing a wide array of living services, speech, occupational, physical therapies, social services, and other rehabilitation and healthcare services. Selectis focuses on building strategic relationships with local communities in which its partnership can improve the quality of care for facility residents. With its focused growth strategy, Selectis intends to deepen its American Southcentral and Southeastern market presence to better serve the aging population along a full continuum of care.
For more information, please visit www.selectis.com.
Forward Looking Statements
This press release contains statements that plan for or anticipate the future. In this press release, forward-looking statements are generally identified by the words “anticipate,” “plan,” “believe,” “expect,” “estimate,” and the like. These forward-looking statements include, but are not limited to, statements regarding the following:
| * | strategic business relationships; | |
| * | statements about our future business plans and strategies; | |
| * | anticipated operating results and sources of future revenue; | |
| * | our organization’s growth; | |
| * | adequacy of our financial resources; | |
| * | development of markets; | |
| * | competitive pressures; | |
| * | changing economic conditions; and, | |
| * | expectations regarding competition from other companies. | |
| * | the duration and scope of the COVID-19 pandemic | |
| * | the impact of the COVID-19 pandemic on occupancy rates and on the operations of the Company’s facilities. | |
| * | Actions governments take in response to the COVID-19 pandemic, including the introduction of public health measures and other regulations affecting our properties and our operations. | |
| * | The effects of health and safety measures adopted by us in response to the COVID-19 pandemic. | |
| * | Increased operational costs because of health and safety measures related to COVID-19. | |
| * | Disruptions to our property acquisition and disposition activities due to economic uncertainty caused by COVID-19. | |
| * | General economic uncertainty in key markets as a result of the COVID-19 pandemic and a worsening of global economic conditions or low levels of economic growth. | |
Although we believe that any forward-looking statements, we make in this press release are reasonable, because forward-looking statements involve future risks and uncertainties, there are factors that could cause actual results to differ materially from those expressed or implied. For example, a few of the uncertainties that could affect the accuracy of forward-looking statements, besides the specific factors identified above in the Risk Factors section of this press release, include:
| * | changes in general economic and business conditions affecting the healthcare industry; | |
| * | developments that make our facilities less competitive; | |
| * | changes in our business strategies; | |
| * | the level of demand for our facilities; and | |
| * | regulatory changes affecting the healthcare industry and third-party payor practices. | |
Investor Relations Contact
Scott Liolios or Patrick Hall
Gateway Group, Inc.
(949) 574-3860
selectis@gateway-grp.com
1 Leased facilities operated by third parties.
2 All located on the same campus in Tulsa, OK.
FAQ**
How does Selectis Health's recent sale of the Sparta and Warrenton facilities impact the overall financial stability of Global Healthcare REIT Inc GBCS and its future growth prospects in the skilled nursing sector?
Given the strategic focus on strengthening the balance sheet, what additional property sales is Global Healthcare REIT Inc GBCS considering to optimize its portfolio and enhance shareholder value moving forward?
In light of the statement by CEO Adam Desmond, how does Global Healthcare REIT Inc GBCS plan to leverage proceeds from the sale for future operational improvements and market expansion?
With ongoing discussions about strategic property sales, how does Global Healthcare REIT Inc GBCS intend to maintain competitiveness and service quality in the evolving healthcare landscape?
**MWN-AI FAQ is based on asking OpenAI questions about Global Healthcare REIT Inc (OTC: GBCS).
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