Ethema Completes Restructure and Gets Ready to Open New Treatment Facility
West Palm Beach, FL, Aug. 20, 2020 (GLOBE NEWSWIRE) -- via NEWMEDIAWIRE -- Ethema Health Corporation (OTCPINK: GRST) (“Ethema” “GRST” or the “Company”) last reported on July 2, 2020 on its progress
with its filing status and its debt restructuring. The Company announces today that it has completed its debt restructuring with Leonite Capital LLC (“Leonite”), including the completion of
the additional new financing that was a condition of the restructuring. The Company has amended the terms of its debt with Leonite to convert over $1.4 million of defaulted debt into
CDN$960,000 (approximately US$700,000) of 10% convertible preferred shares in its wholly owned subsidiary Cranberry Cove Holdings Ltd., and $400,000 in 6% convertible preferred shares in the
Company. The Company has filed article of amendment to create a new class of preferred shares for this amendment and a new class of preferred shares for its subsidiary Cranberry Cove Holdings
Ltd. The remaining balance of the Leonite debt was reduced to $150,000, which had its terms reset to its original terms prior to its default on the note. As part of the
restructuring, Leonite exchanged all of its previous warrants for one new warrant. The company will file all documents related to the restructure in an 8K filing.
New financing of $300,000 was required as part of the restructuring including the previously announced completion of $220,000 in financing from Leonite Capital and the closing on August 14, 2020 of $100,000 in new financing from Auctus Fund LLC. With this new financing, the acquisition of 51% of American Treatment Holdings Ltd. has closed in escrow. The wholly owned subsidiary of American Treatment Holdings Ltd. is Evernia Health Center LLC (“Evernia”), which holds the lease on 950 Evernia Street, West Palm Beach, Florida. Evernia expects to receive its license to operate a full continuum of care at this location in the coming days. Evernia has registered a DBA for doing business as Addiction Recovery Institute of America.
Lesen Sie auch
The Company has continued to work on the completion of its overdue filings. After filing its 10k it was expected to be able to file its first quarter 10Q and it second quarter 10Q shortly thereafter. The complexity of the debt restructuring and the delay caused by the COVID-19 pandemic has resulted in the Company taking much longer than expected to complete these filings. With the restructuring now completed it expects that these filings will now get completed in the very near future.