Selectis Health, Inc. (OTC: GBCS) entered into a definitive purchase and sale agreement on December 5 2025, announced on December 9 2025, to sell its Sparta and Warrenton skilled‑nursing facilities to Journey Propco LLC affiliates for a total consideration of $13,175,000. The transaction is still subject to customary closing conditions and is expected to close on February 1 2026.
The sale of the Sparta Facility (Providence of Sparta Health & Rehab) and the Warrenton Facility (Warrenton Health & Rehabilitation) will transfer ownership and operations to The Woods at Sparta of Journey Propco LLC and Warrenton Woods of Journey Propco LLC, respectively. Selectis will retain its remaining Georgia properties—Eastman Healthcare & Rehabilitation and Glen Eagle Nursing & Rehabilitation—continuing to operate them under its existing management structure.
This transaction is part of Selectis’s broader strategy to strengthen its balance sheet amid liquidity concerns. The company has disclosed a working‑capital deficit and non‑compliance with two loan covenants, prompting a “substantial doubt” about its ability to continue as a going concern. By divesting two assets, Selectis aims to reduce debt, improve cash flow, and create a more focused portfolio that can support future growth.
The agreement follows a February 2025 attempt to sell four facilities—including Sparta and Warrenton—for $27 million that was ultimately terminated. The new sale reflects a renewed effort to monetize assets that are not core to the company’s long‑term strategy while preserving operations at its remaining facilities.
Management emphasized that the definitive agreement “brings 2025 to a close on a positive note and caps a year of growth and change here at Selectis.” CEO Adam Desmond noted that the sale demonstrates the company’s commitment to optimizing operations and leveraging capital to reduce debt and enhance cash flow, while maintaining a focus on patient care and shareholder value.
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