ITEM 1.02 TERMINATION OF MATERIAL AGREEMENTS
Global Healthcare REIT, Inc., d/b/a Selectis Health, Inc., (the "Company") has
been a party to two operating leases covering its skilled nursing homes located
in Warrenton, Georgia and Sparta, Georgia:
The Company's wholly owned subsidiary ALT/WARR, LLC was the landlord under a
lease dated as of August 18, 2015, between ATL/WARR, LLC , and C.R.M. of
Warrenton, LLC d/b/a C.R.M. Warrenton Health & Rehab, LLC ("Tenant") governing
the skilled-nursing facility located at 813 Atlanta Highway, Warrenton, Georgia,
as amended; and
The Company's wholly-owned subsidiary Providence HR, LLC was the landlord under
a lease dated as of dated as of August 18, 2015, between Providence HR, LLC, and
C.R.M. of Sparta, LLC d/b/a C.R.M. Providence Health & Rehab, LLC ("Tenant")
governing the skilled-nursing facility located at 60 Providence Street, Sparta,
Georgia, as amended.
Both Tenant entities are affiliates of the same individual professional
operator.
Effective January 27, 2021, the Company served a Notice of Termination under
both of the foregoing leases. The Notice of Termination was based upon numerous
Events of Default under both leases, including the Tenant's failure to pay
required taxes, which have been accruing. The Company expects both Tenants to
dispute the existence of Events of Default and object to the termination of the
leases.
There can be no assurance how these matters will be resolved.
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