Ethema Health Corporation announced as a result of the sale leaseback transaction, the Company will have the resources to pay off all of the outstanding senior lender debt at the closing of the transaction. The senior lender had previously extended the forbearance agreement to allow for the Company to complete this process. Overall, the impact of this transaction will equate to a net reduction in debt of approximately $6.7 million and shareholder equity is expected to improve by $2 million for an overall positive improvement on the balance sheet of $8.7 million. The Company also renegotiated the maturities of all of its remaining debt that had either expired or had no fixed terms of repayment.

This puts the Company in a position to manage the repayment of those debts over time or convert them to equity.