Ethema Closes New Financing
West Palm Beach, Florida - (NewMediaWire) - June 9, 2021 - Ethema Health Corporation (OTCPINK: GRST) (“Ethema” “GRST” or the “Company”), is pleased to announce that the Company received a new fixed rate convertible note financing from Labrys Fund, LP. The details have been released in an 8-k filed today with the SEC. The Company closed on a one year convertible note in the face amount of $230,000.00 including an OID of 10% and a fixed conversion price of $0.004 per share. The Company is using the proceeds of the loan to pay certain outstanding liabilities and for general working capital.
The Company is bolstering its working capital so that it may continue to pay debts as they become due and work on expanding the treatment facility in West Palm Beach Florida. The Company has submitted all requested documentation to the Florida Department of Children and Families for the ownership change for its acquisition of the ARIA treatment Center and is expecting an approval to be issued imminently. The treatment center continues to perform well and hit capacity several times in recent weeks. Construction work on expansion was delayed due to a submission of revised drawings but has restarted recently and is expected to be completed in the next 60 days. This expansion will increase the number of beds in the treatment center from 40 to 52. The Company plans to use some of the new working capital to improve its website and to implement a system for more frequent communication with its very valued shareholders.
2021 year to date the Company has replaced or retired almost $900,000 in debt that became due in 2021. Approximately $500,000 of debt was replaced with fixed price convertible notes and approximately $400,000 of debt was retired through conversion to equity. In addition, warrants to purchase approximately 119 million shares were exercised and are no longer outstanding. These are all significant improvements to the Company capital structure as the Company continues its efforts to improve the balance sheet.
Mr. Shawn Leon, the CEO of the Company, stated, “I am very pleased that the Labrys Fund has continued to show faith in the Company and I am very pleased to continue our aggressive pursuit of eliminating debt while building our business. I have heard from many shareholders that they would like to hear from me more frequently and I am going to work on an effective method to accomplish this.”
About Ethema Health Corporation
Ethema Health Corporation (OTCPINK: GRST) operates in the behavioral healthcare space specifically in the treatment of substance use disorders. Ethema developed a unique style of treatment over the last decade and has had much success with in-patient treatment for adults. Ethema will continue to develop world class programs and techniques for North America. For more information you can visit our website at www.ethemahealth.com .
Notice Regarding Forward-Looking Statements
The information contained herein includes forward-looking statements. These statements relate to future events or to our future financial performance, and involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance, or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. You should not place undue reliance on forward-looking statements since they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond our control and which could, and likely will, materially affect actual results, levels of activity, performance or achievements. Any forward-looking statement reflects our current views with respect to future events and is subject to these and other risks, uncertainties and assumptions relating to our operations, results of operations, growth strategy and liquidity. We assume no obligation to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.
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Ethema Health Corporation
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