Ethema Health Corp (GRST)

[Bubae]

More promotional misinformation. The didn't mention that the "purchase" part of the "sell and lease back the property" or the $1 million in fees to secure the net proceeds of what was actually $2.3 million. I also liked the characterization of the Canadian property loss as a sale to the 'Company’s Senior lender'. The senior lender Leonite exchanged the preferred shares in Ethema Health and Cranberry Cove that were acquired in the debt restructuring of 2020 for the property. That was defaulted debt that was turned into preferred shares. The bulk of the debt that was settled with the handing over of Cranberry Cove was the mortgage of roughly $3.4 that was in default. Again in the last quote referring to the deal as a sale in the $4.9 million in debt elimination statement which included the mortgage. Talk about lipstick on a pig.

Bottom line is heavy promotion on misinformation because they have an offering to sell an there is no interest in this stock. "The Company is also about to embark on a capital raising campaign..." We all know what the effect on shareholders of a regulation "A" offering has. Of course they have been talking about this since the original filing nearly a year ago. No worries though, Shawn moves at a glacial pace. It took a year to get the purchase, sale, lease back fiasco done.

We also recently reported on a real estate transaction for the ARIA property that closed on August 4th, 2023 where Ethema was able to sell and lease back the property on a long term lease with renewal options that gives the Company control of the property for the next 40 years. There was a profit generated on the transaction which was substantially used to paydown debt.

The Company is also about to embark on a capital raising campaign which will attempt to raise $5,000,000 in new equity.

A major portion of the debt repayment went to the Company’s Senior lender and as part of a global restructuring, the Senior lender agreed to purchase the Company’s Canadian real estate subsidiary. The Company had retained ownership of the property ever since selling its former treatment center operation at this location.

...The sale of the subsidiary resulted in the elimination of another approximately $4,900,000 in debt.

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

First, the Company is pleased to announce that is has signed a binding purchase and sale agreement to sell and leaseback the property located at 950 Evernia Street, West Palm Beach for $8,500,000 contemporaneously with the purchase of the property for $5,500,000. The Company will simultaneously enter into a twenty-year lease on the Property.

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.