WEST PALM BEACH, FL , March 01, 2023 (GLOBE NEWSWIRE) -- via NewMediaWire – Ethema Health Corporation (OTCPINK: GRST) (“Ethema”, “GRST” or the “Company”), has signed an extension and forbearance agreement with Leonite Capital Inc. extending the due date for its note due March 1, 2023 . The Company will continue to pay interest on the note and it will be due May 8, 2023 .
The Company has also extended the closing on the purchase of the real estate at 950 Evernia Street for a period of 120 days from February 1, 2023 to June 1, 2023 . Each successive thirty-day extension will cost the Company an increasing fee amount that would reach a total of $70,000.00 if all extensions are used. Although the Company has lined up financing with a partnership interest, it would require the Company to keep its valuable cash invested in the property over the long run. The Company is pursuing other options for the real estate ownership that would not only get the Company its deposit money out but allow it to get additional funds from the real estate which could be used to eliminate debt.
The Company is nearing the completion of the definitive agreements on the previously announced acquisition. Once a final agreement is reached, there will be a short due diligence period followed by a thirty day closing period. The purchase of the acquisition will be funded by the financing raised by the Reg A+ offering.
The Company is also nearing the Completion of a Letter of Intent for a lease location in Orlando, Florida for a de novo growth facility.
The Reg A+ offering will soon have a new marketing plan and will soon be hosted on the Dealmaker platform. The Company experienced a short period of time where its website was not available during the process of integrating it into a new platform system that will be compatible with the new marketing plan and Dealmaker platform.
Mr. Shawn Leon , Company CEO, reported, “The first two months of the year have been very busy with the real estate purchase, the acquisition and growth plan, the Reg A+ financing and the continued management of the ARIA facility in West Palm Beach .
Although it looks like the Aria facility will fall just short of its $1,000,000 EBITDA goal for calendar 2022, the PB Billing subsidiary and Cranberry Cove subsidiary will be on budget. The 10-K will be filed at the end of March and will reflect the divestiture of two of the subsidiaries previously used in the operation of Seastone Delray Healthcare and Greenestone Clinic Muskoka. This will help clean up the balance sheet and together with our current efforts we expect that only the Series N convertible notes and the shareholder advances to my family will remain as the only non-real property debt by the end of the second quarter this year.”
