Ethema Health Secures Revolving Line of Credit with Testing 123

Ticker: GRST · Form: 8-K · Filed: Feb 7, 2024 · CIK: 792935

Ethema Health CORP 8-K Filing Summary
FieldDetail
CompanyEthema Health CORP (GRST)
Form Type8-K
Filed DateFeb 7, 2024
Risk Levellow
Pages1
Reading Time2 min
Key Dollar Amounts$1,000,000.00
Sentimentbullish

Complexity: simple

Sentiment: bullish

Topics: debt, financing, material-agreement

TL;DR

**ETHEMA HEALTH just got a new revolving line of credit, boosting its financial flexibility.**

AI Summary

On February 1, 2024, Ethema Health Corporation, along with American Treatment Holdings Inc. and Evernia Health Center LLC, secured a revolving line of credit agreement with Testing 123, LLC. This agreement is a material definitive agreement, meaning it's significant for the company's operations. This matters to investors because a new line of credit can provide Ethema Health with crucial working capital, potentially funding growth initiatives or covering operational expenses, which could impact future financial performance and stock value.

Why It Matters

This new line of credit provides Ethema Health Corporation with financial flexibility, which could be used to support operations or fund expansion, potentially boosting the company's stability and growth prospects.

Risk Assessment

Risk Level: low — Securing a line of credit generally reduces immediate liquidity risk and provides financial flexibility, which is a positive development.

Analyst Insight

A smart investor would view this as a positive sign of improved financial flexibility for Ethema Health Corporation, potentially indicating a reduced short-term liquidity risk and capacity for future investment or operations. Further investigation into the terms of the credit line (e.g., interest rates, limits) would be prudent.

Key Players & Entities

FAQ

What is the primary purpose of this 8-K filing by Ethema Health Corporation?

The primary purpose of this 8-K filing is to report the 'Entry into a Material Definitive Agreement' as per Item 1.01, specifically a revolving line of credit agreement entered into on February 1, 2024.

Which entities are involved in the revolving line of credit agreement?

The entities involved in the revolving line of credit agreement are Ethema Health Corporation, American Treatment Holdings Inc., and Evernia Health Center LLC (collectively referred to as 'the Company' or 'Companies') as borrowers, and Testing 123, LLC as the lender.

When was the revolving line of credit agreement entered into?

The revolving line of credit agreement was entered into on February 1, 2024, which is also the 'Date of earliest event reported' in the filing.

What is the business address of Ethema Health Corporation?

The business address of Ethema Health Corporation is 950 Evernia Street, West Palm Beach, Florida 33401.

Under which SEC Act is this Form 8-K filed?

This Form 8-K is filed pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934.

Filing Stats: 384 words · 2 min read · ~1 pages · Grade level 11.5 · Accepted 2024-02-07 16:45:09

Key Financial Figures

Filing Documents

01 ENTRY INTO

ITEM 1.01 ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT. Testing 123, LLC ("Testing") On February 1, 2024 Ethema Health Corporation, American Treatment Holdings Inc, and Evernia Health Center LLC (the "Company" or "Companies") entered into a revolving line of credit agreement (" Agreement") with Testing. The term of the Agreement is two years and the maximum amount that may be drawn down is $1,000,000.00. The foregoing summary of the terms and conditions of the Agreement does not purport to be complete and is qualified in its entirety by reference to the full text of the Revolving Line of Credit Agreement, The Loan Agreement and the Security Agreement by and between the Company and Testing, dated January 31, 2024 which are filed as Exhibits 10.01, 10.02 and 10.03 hereto, respectively.

01 Financial Statements and Exhibits

Item 9.01 Financial Statements and Exhibits. (d) Exhibits Exhibit No. Description 10.01 Revolving Line of Credit Agreement dated January 31, 2024 10.02 Loan Agreement dated January 31, 2024 10.03 Security Agreement dated January 31, 2024

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Date: February 7, 2024 By: /s/ Shawn E. Leon Name: Shawn E. Leon Title: CEO

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