Ethema Working on Acquisition Financing and Debt Reduction for 1st Quarter
West Palm Beach, Florida - 
(NewMediaWire) - January 16, 2020 - Ethema Health Corporation
(“Ethema” “GRST” or the “Company”), a provider of healthcare services,
previously announced an LOI for the acquisition of a majority interest in an
addiction treatment company. Efforts are underway to secure financing for the
acquisition. Ethema is working with funders the Company is familiar
with, having dealt with many over the last several years. There is a high level
of interest in the quality of the acquisition and the Company expects to know
which group they will be working with by the end of January 2020. Due diligence
on the acquisition is on-going and the Company CEO will be doing site visits
during the week of January 20, 2020.
The Company has agreed to
vacate its existing West Palm Beach property by January 31, 2020. The Company
is continuing to negotiate with a local Florida operation to be able to move
its operations but has not yet reached any agreements. As reported earlier, the
Company will move its principal office to a location nearby. These processes
have begun and are expected to be completed very soon.
The termination of the operation in West Palm
Beach will dramatically reduce the negative cash flow of the Company and
allow it to focus on cleaning up the debt on the balance sheet as it works
towards completing the acquisition. As part of these efforts to reduce debt,
the Company is in talks with certain lenders and shareholders of the Company,
around the possible sale of the Canadian subsidiary that owns the real estate
of the Company’s former operations in Canada. This could help reduce the
majority of the debt in one step. The Company is looking for immediate
solutions to paying off certain convertible debt, some of which has been
converted to equity. The amount and extent of the equity conversions are
uncertain and the Company is actively working on short-term replacement
financing as a solution.
Additionally, the Company has
identified other suitable acquisitions and will be able to add these once a
suitable funder has been chosen.
“There is a complete restructuring underway
which we expect to stabilize the Company and get it prepared to take on new
initiatives in the addiction treatment business. There has been a dramatic
shift from the traditional treatment models, that has been driven by the
insurance carriers. The changes are still not fully effected, but there are no
indications that the addiction problem is getting any better. Addiction and
mental health issues are finally receiving the attention they deserve and we
will continue to be leaders in providing the best possible care and treatment
in the addiction treatment field,” said Shawn Leon, CEO of the Company.
About Ethema Health Corporation
Ethema Health Corporation (OTCQB: 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 eight years 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 http://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.
For information please contact:
Ethema Health Corporation
416-500-0020
shawn@ethemahealth.com
