WEST PALM BEACH, FL, Nov. 30, 2020 (GLOBE NEWSWIRE) -- via NewMediaWire – Ethema Health Corporation (OTCPINK: GRST) (“Ethema” “GRST” or the “Company”), is pleased to announce that the Company has signed a term sheet on November 24, 2020 with Labrys Fund LP for a 12% $275,000.00 loan that will provide the Company with a net of $239,050.00 after original interest discounts, legal fees and brokers fees. The loan is repayable in 10 equal monthly payments of $30,800 commencing February 26, 2021. The loan will have full warrant coverage. The warrants will have a term of 5 years and will allow for the purchase of 183,333,333 shares at a price of $.0015 per share.
On November 25, 2020, the Company received a conversion notice (“Notice”) from Labrys Fund LP (“Labrys”) pursuant to the Labrys July 8, 2019 convertible note (“Note”). The Notice was for a conversion of the original principal outstanding under the Note prior to the May 15, 2020 amendment to the Note requiring the Company to pay a reduced principal amount of the Note back in monthly cash installments. The Notice was an at-the-market conversion with a conversion price of $0.0028. The conversion is a one-time conversion that fully satisfies that balance of the Note in excess of $255,000. There was a total of 91,421,457 shares issued under the conversion.
The Company CEO, Shawn Leon, stated, “With these two events, the Company has positively impacted cash flow over the next three months by over $325,000.00. This comes at a critical time and aids our ability to grow the addiction treatment business from start-up to cash flow breakeven.” Mr. Leon added, “The one-time at-the-market conversion and new investment by Labrys was a show of confidence in the results of the restructuring transactions undertaken by the Company.”
The Company expects the cash provided by these events will be sufficient to meet the Company’s operational cash flow requirements for the addiction treatment center start-up. The Company will continue to pursue Regulation A Tier II financing to support accretive acquisitions in the near future.
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 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 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.
For information please contact:
Ethema Health Corporation
Text to 416-500-0020
shawn@ethemahealth.com
Twitter @healthethema