Ethema Reports Updates and Extends Forbearance

WEST PALM BEACH, FL, June 08, 2023 (GLOBE NEWSWIRE) -- via NewMediaWire – Ethema Health Corporation (OTCPINK: GRST) (“Ethema”, “GRST” or the “Company”) is pleased to update shareholders on several initiatives that the Company has been working on most recently. The company is in negotiation with its senior lender on repayment of its debt and convertible notes. The lender has agreed to extend the original forbearance agreement expiring June 8, 2023, until June 28, 2023 to agree to a plan for repayment of the Leonite debts and convertible loans. These parties are also negotiating a global restructuring of outstanding securities that is expected to be announced shortly. The plan would greatly reduce the complexity of the Company’s balance sheet, as well as reduce substantial liabilities.

The Company’s initiative on purchasing the West Palm Beach real estate is also in its final stages and will be part of the expected resolution as part of the senior debt restructuring.  These two initiatives have delayed both the start of the Reg A+ capital raise and the completion of the acquisition.  All of these initiatives are interdependent on each other, and it is expected that they will be resolved by June 30, 2023. 

The Company further reports that its ARIA subsidiary achieved extremely strong results in April and May with over 1 million in revenue for the two months.  The company expects this revenue rate to continue for June. If revenue continues as projected, the second quarter will set new highs for profitability.      

Mr. Shawn Leon, Company CEO, reported, “Our focus on growth and repayment of debt should yield some very substantial results in the second quarter.” Mr. Leon further added, “It came to my attention recently that misinformation about our Company was shared in an online forum accusing the company of being the subject of a wrongful death lawsuit and that the Company was accused of ‘patient brokering’.   (CASE NUMBER: 502021CA002289 AN, Mark Stricklin v multiple parties.)  The case named the prior treatment center ‘Evernia Sation’ that previously occupied the location at 950 Evernia Street and Evernia Health Center, LLC (DBA ARIA).   Once the Plaintiff was notified that Evernia Health Center, LLC (DBA ARIA) was incorrectly named in the suit, Evernia Health Center was dropped from the suit on 4/18/2023 with prejudice, (Document 160 in the public case file above).  Another co-defendant ‘Transformations Treatment Center’ who is not affiliated with any of the other named parties was the party indicated in the suit as being a party to ‘patient brokering’.  Evernia Health Center, LLC was never named as a party to this count and Evernia Health Center was not in operation at the time of the death of Mr. Strickland.  The entire case was resolved on May 24, 2023 in mediation and the case was dismissed with prejudice.  Evernia Health Center had nothing to do with the wrongful death case, and is not involved in any patient brokering.”