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.”

Ethema is proud of our core mission which centers on delivering compassionate, evidence-based addiction treatment. We operate under stringent ethical standards and maintain a robust admission process driven by patients' individual needs and clinical necessities. We remain steadfast in our commitment to serve those battling addiction.

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.

For information please contact:
Ethema Health Corporation
shawn@ethemahealth.com     
Text to 416-500-0020
Twitter @healthethema