Biohazard Health Services LLC

Ethema Health Corp. signed a letter of intent to acquire a majority stake in Biohazard Health Services LLC for $5 million. Delray Beach, Fla.-based Ethema will make the acquisition through three tranches. It will initially buy 25% of Biohazard Health for $250,000, with the first tranche expected to close June 30. The remaining two tranches for additional stakes of 15% and 10% are dependent on Biohazard Health's sales revenues. Ethema will pay $1.75 million in the second tranche and $3 million in the third. Biohazard Health, doing business under the Covid Clear brand, sells a disinfecting product that uses airborne technology to keep spaces free of bacteria. Ethema, which provides services to treat substance use disorders, will also pay Biohazard Health $100,000 in common shares for exclusive rights to distribute its products in Canada and to sell them to the addiction treatment industry in the U.S.

Ethema Health Corporation (OTCPK:GRST) signed a non-binding Letter of Intent to acquire 51% stake in Biohazard Health Services LLC ("Covid Clear") for $5 million on June 16, 2020. The first tranche buys 25% of Covid Clear for a payment of $250,000, the second tranche buys an additional 15% for a payment of $1,750,000 and the third buys an additional 10% for a payment of $3,000,000. The second and third tranches are dependent on Covid Clear reaching certain sales revenue thresholds. In addition to the majority interest in Covid Clear Ethema is buying the exclusive right to distribute the Covid Clear products in Canada on a royalty basis and an exclusive right to sell to the addiction treatment industry in the United States on a commission basis. Ethema will be issuing $100,000 of restricted Ethema common stock for these rights. Ethema will continue its due diligence and will require raising additional new funds to complete the initial phase of the acquisition. The initial closing is set for June 30, 2020.