Ethema Health Corp (GRST)

[Bubae]

An example of a potential press release promo spin item could be the retirement of roughly $4.2 million in debt. That would be the handing over of the Cranberry Cove Holdings business which holds the Canadian property and retiring the $3.5 million mortgage that matured July 2022, and the $700K in series "A" preferred shares that Leonite holds in Cranberry Cove.

The current tenant of the Canadian property has an option to purchase around CDN$7 million ($5.3 million). If that valuation is good maybe they can unload the $400 in Ethema series "B" preferred shares held by Leonite as well. These shares were mentioned in the last filing as part of current negotiations. So maybe they could claim $4.6 million and expenses in debt reduction.

The bad news is that the Canadian property has always been their best performing asset. Select chart below to enlarge.


For the fiscal year ended: December 31, 2022
https://www.otcmarkets.com/filing/html?id=16535244&guid=RPD-kW-VfXLSJth

Muskoka Treatment Facility

The Muskoka Treatment Facility is located in Bala, Ontario, 3571 Highway 169. The property is 43 acres and contains approximately 48,000 square feet of buildings. The property is wholly owned by CCH and has been leased to CART for an initial term of five years, which ended on February 28, 2022. The tenant exercised its option to extend the lease term for an additional five years. The lease gives the tenant an option to extend for two additional five (5) year terms, an option to purchase the property at any time for a purchase price of CDN$7,000,000 in the first thirty six (36) months...



Debt Restructuring 8K December 2020
https://www.otcmarkets.com/filing/html?id=14554778&guid=RPD-kW-VfXLSJth

ITEM 1.01 ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT.
Leonite Capital LLC

2. $700,000 of the note was converted into Series A Redeemable Preferred shares in the Company’s subsidiary, Cranberry Cove Holdings, accruing dividends at 10% per annum.

3. $400,000 of the note was converted into series B Preferred stock in the Company for a twelve-month period, mandatorily redeemable by the Company accruing dividends at 6% per annum payable in cash or stock, subject to certain conditions.



Ethema Extends Dates for Debt Repayment and Real Estate Closing
March 01, 2023 08:00 ET
https://www.globenewswire.com/en/news-release/2023/03/01/2618141/0/en/Ethema-Extends-Dates-for-Debt-Repayment-and-Real-Estate-Closing.html

Mr. Shawn Leon, Company CEO, reported,...

...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.”...


For the quarterly period ended March 31, 2023
https://www.otcmarkets.com/filing/html?id=16673787&guid=RPD-kW-VfXLSJth

The Series B preferred shares are senior secured and were mandatorily redeemable by the Company on July 1, 2021, and were originally classified as mezzanine debt. These Series B preferred shares have been reclassified as current liabilities for the three months ended March 31, 2023 as they meet the definition of liabilities in terms of ASC 480- debt and are no longer contingently convertible, due to the fact that the redemption date has passed and the Company is currently negotiating with the preferred note holders to settle the total liabilities owing to them, including certain convertible notes. The Company continues to accrue dividends at the rate of 6% per annum.



17. Commitments and contingencies
b. Mortgage loans

The company has a mortgage loan as disclosed in note 9 above. The mortgage loan matured on July 19, 2022 and the Company currently owes $3,478,130. The terms of the loan are currently being negotiated.