Ethema Health Corp (GRST)

[Bubae]

Here is what you can figure out from a historical perspective, and lets face it, all information that is available about the company is not current at any moment.

Historical, the 2022 annual shows the lease agreement for the Canadian Property with an option to buy for CDN$7 million which is roughly $5.3 million for an idea of valuation. Leonite already held $700K in series "A" preferred shares of the holding company Cranberry Cove which is outlined in the debt restructuring 8K release December 2020. We also know from that restructuring deal that Leonite holds $400K in series "B" preferred shares in Ethema Health (GRST) which is senior to all other securities of the company. The Q1 2023 filing reveals that the mortgage on the Canadian property which matured in July 2022 had a balance of $3.5 million.

So who posted on July 1st that the Canadian property may be handed over to Leonite for the $700K in preferred shares and if the property valuation held up could also include the $400K in preferred shares. Everything that we needed to know to cypher out this option for the company was in the HISTORICAL analysis of the filings. Looks like $4.2 million in debt settled for a property valuation of $5.3 million and some nice free cash flow from the current tenant for the balance of the lease agreement which is about three and a half years. That lease contract had value above the property appraisal.

...For the moment we KNOW HISTORIC INFORMATION (you included),...

Ethema Executes Two Real Estate Transactions and Major Debt Repayment
July 17, 2023 09:34 ET
https://www.globenewswire.com/en/news-release/2023/07/17/2705721/0/en/Ethema-Executes-Two-Real-Estate-Transactions-and-Major-Debt-Repayment.html

Third, the Company has agreed to sell the subsidiary that owns the Canadian property to its senior lender in exchange for all of the senior lender’s preferred shares, accrued and unpaid dividends, and the assumption of the property mortgage.





Bubae
Saturday, July 01, 2023 4:49:55 PM
Post# 47437
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=172255399&txt2find=canadian%20property

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....