WEST PALM BEACH, FL – (NewMediaWire) – July 17, 2023 – Ethema Health Corporation (OTCPINK: GRST) (“Ethema”, “GRST” or the “Company”) is pleased to announce the results of the global restructuring efforts with its senior lender and the property purchase in West Palm Beach.
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. The agreement became legally binding on July 13, 2023, and it is expected to conclude on or before August 3, 2023. The three million dollar spread is profit to the Company before expenses. Second, as a result of the sale leaseback transaction, the Company will have the resources to pay off all of the outstanding senior lender debt at the closing of the transaction. The senior lender had previously extended the forbearance agreement to allow for the Company to complete this process. 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. The Company will emerge from this transaction with a greatly streamlined cap table, an improved balance sheet, and a new focus on an “asset light” business model.