WEST PALM BEACH, Fla., Jan. 16, 2020 /PRNewswire-PRWeb/ -- 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.
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SOURCE Ethema Health