Ethema Health Corp (GRST)

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West Palm Beach, FL , July 26, 2022 (GLOBE NEWSWIRE) -- via NewMediaWire -- Ethema Health Corporation (OTCPINK: GRST) (“Ethema” “GRST” or the “Company”) has entered into a contract to purchase the property at 950 Evernia Street , West Palm Beach , that  its ARIA subsidiary is currently leasing and that is the new address of the Company’s head office.  On July 25 the Company completed a $50,000.00 down payment on the purchase agreement.  The agreement between the Company and the landlord/owner of the property is for a purchase price of $5,500,000 to be completed in February 2023 . The landlord will provide financing of $4,000,000 as part of the purchase completion and the Company will need to pay the balance of the purchase price in cash on or before September 30, 2022 .
The Company intends to structure the purchase in an off-balance sheet transaction through a Limited Partnership structure whereby the equity funds required for the purchase will be a direct investment in the property limited partnership.  The Company will invest $100,000.00 into the limited partnership and become the General partner giving the Company control of the property and a 50% interest in the income of the property.  The overall net cost to the Company for the property will not change unless the Company can secure alternate mortgage financing on the property for less than 6% interest, in which case the cost will go down.  This may not be possible due to the tightening credit markets but the agreement gives the Company cost certainty into 2024.  
Mr. Shawn Leon , Company CEO, reported, “We have worked hard to secure a manageable agreement to purchase the property.  There is a substantial amount of activity taking place around the property with the proposed development of a new University of Florida campus on the same block.  The property has tremendous value to our Company and we felt that we needed to have long-term control of the property.  Our five-year lease term on the property was not going to give us that control.  We have made significant investments in the renovation of the property and those expenditures will now be amortized over a longer term.  This strategy fits with our vision of building a significant presence in the addiction treatment industry.”