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Latest filing for the lawsuit dated May 26th below. Apparently the company has settled the suit through mediation. Who paid, and will they actually, finally, disclose it in a filing? It looks to me like this is what has been holding things up. We should see a press release about the debt deals for assets and a move to finally, finally, finally, make the regulation "A" offering viable. The only way that they will be able to convince investors to buy those offering shares is to demonstrate that they can be unloaded onto retail traders. Those retail traders won't buy unless they believe they can flip the shares for a profit. That will take a massive reverse split resulting in a low outstanding share count and a much better narrative than another losing treatment center deal in my opinion. Things should move along now with this mediation result and they need cash badly.
What could be good news is what is in the latest filing for the wrongful death lawsuit dated May 25th. It would appear that Behavioral Health Holdings, Inc.(BHHI) which in turn changed its name to American Treatment Holding Inc (ATHI), the current holding company for the Evernia Treatment center, has been dropped from the lawsuit "with prejudice" (means permanently).
It still leaves Peace of Mind Counseling Services Inc., a Florida Profit Corporation d/b/a Evernia Station as one of the two defendants. We still have the document that Shawn Leon has signed off as the CEO of this business entity, Peace of Mind Counseling Services Inc, with the "registered agent" listed as Behavioral Health Holdings, Inc.(BHHI). Could be that they are simply cleaning up the filing.
Worthy of note is that the defendant that is actually be accused of violating the Florida statutes is Transformations Treatment Center, Inc. A comment from Shawn Leon the CEO of Ethema Health (GRST) would clear this up rather quickly. Select images below to enlarge.
Search as a guest using the case number - look under "Dockets and Documents" go to page 8 of the documents
Welcome to eCaseView, the Clerk of the Circuit Court & Comptroller’s free court records search.
https://appsgp.mypalmbeachclerk.com/eCaseView/landingpage.aspx
Wrongful Death Lawsuit - status: Open
Case Number : 50-2021-CA-002289-XXXX-MB or CASE NO.: 502021CA002289 AN
02/19/2021 - STRICKLIN, MARK V BEHAVIORAL HEALTH HOLDINGS INC
05/23/2023 MOTION PLAINTIFF'S MOTION FOR LEAVE TO AMEND COMPLAINT
2. Undersigned counsel has learned through discovery and investigation that Defendant
TRANSFORMATIONS may have violated multiple Florida criminal statutes and 2
new counts need to be added against that Defendant related to the alleged criminal
conduct.
45. Florida's Patient Brokering Act broadly prohibits offering or paying any
"commission, benefit, bonus, rebate, kickback, or bribe, directly or indirectly, in cash or in kind" or
engaging "in any split-fee arrangement, in any form whatsoever, to induce the referral of a patient
or patronage to or from a health care provider or health care facility." Fla. Stat. § 817.505(l)(a)
46. The statute also prohibits soliciting or receiving any such commission, as well as
aiding or otherwise participating in conduct prohibited by the statute. See id. § 817.505(l)(b)—(d)
49. By paying for transportation to their facility, Defendant TRANSFORMATIONS was
in violation of § 817.505, Florida Statutes, also referred to as the Florida Patient Brokering Act for
this felony conduct.
On what basis would anyone be buying? The very best scenario for the company is to finally get the regulation "A" offering rolling. Anyone who has got caught holding while an offering converts understands what happens. How is the massive dilution for debt benefit current shareholders? This is getting worse by the day and the fact that they have gone silent after the Q1 means that they can't get it together once again. They have $400K in the refundable deposit for the property that they will NEVER actually buy that they can tap to feed the bleeding for another quarter. Even the best OTC prospects aren't able to convert equity for capital in this market.
Ethema Health Regulation "A" offering
https://www.otcmarkets.com/filing/html?id=16623154&guid=ZRT-kFZ0QRA5dth
...(the “Company,” “Ethema,” “we,” “us,” and “our”), is offering up to 4,166,666,660 shares (“Shares”) of its common stock, par value of $0.01 per share (“Common Stock”) sold in Units of 100 Shares of Common Stock (“Units”) on a “best efforts” basis...
GRST - Selling 100 Shares at 000.4.... Someone is really SPITEFUL....
DATE TIMESTAMP PRICE $ CHANGE VOLUME
05/31/2023 09:47:05 -0.0004 - 0.00 -.......100
05/31/2023 09:30:00 -0.0005- 0.00 - 100,000
05/31/2023 09:30:00 -0.0005- 0.00 - 330,000
***https://ih.advfn.com/stock-market/USOTC/demand-brands-pk-GRST/trades
Thanks, Janet, today is good day.
GRST - Link to the trades.....
https://ih.advfn.com/stock-market/USOTC/demand-brands-pk-GRST/trades
I have tinkered around with the West Palm Beach circuit court website a bit more and found that it appears that the rabbit hole goes much deeper. It has been my belief for many months that shareholders here were screwed but this latest finding suggests to me that the note holders for this company may have been duped as well.
We have established that Peace of Mind Counseling Services Inc., the defendant in the wrongful death lawsuit was held Behavioral Health Holdings, Inc.(BHHI) which in turn changed its name to American Treatment Holding Inc (ATHI) a month after the alleged wrongful death event in 2019. American Treatment Holding Inc (ATHI) is the holding company for treatment center Evernia Health previously referred to by the Ethema Health (GRST) as Addiction Recovery Institute of America, LLC (ARIA). Ethema Health ($GRST) claims 75% ownership of this treatment center. Everyone still with me?
Back to doing business as Peace of Mind Counseling Services Inc. I found another case against this company registered under the name Q Health Services, Inc. The case resulted in a judgement against Peace of Mind Counseling Services Inc of more than $1.3 million. The date of this judgement was July 2020. In the link to the document for name change below you will find Behavioral Health Holdings, Inc.(BHHI) becoming American Treatment Holding Inc (ATHI), complete with the business name Evernia Health Center LLC, and signed off as CEO is Lawrence Hawkins. Fast forward to March 2023 and you will find that the annual for Peace of Mind Counseling Services Inc. is signed off as CEO by Shawn Leon, the CEO of Ethema Health (GRST).
So with the connection that I have made it appears that references to Peace of Mind Counseling Services Inc, Behavioral Health Holdings, Inc.(BHHI), American Treatment Holding Inc (ATHI), Q Health Services, Inc, Addiction Recovery Institute of America, LLC (ARIA), all involve Lawrence Hawkins and the current treatment center named Evernia Health Center LLC of which Ethema Health (GRST) claims 75% ownership. Why during 2020 they are still using the name Behavioral Health Holdings, Inc.(BHHI) is a mystery to me. Also a mystery is why Ethema Health (GRST) uses both BHHI and ATHI in the 2020 Q1 filing, text included below.
So back to the start concerning the current note holders and what they knew during this period in 2020. Did the note holders with options for direct ownership of shares of the holding company American Treatment Holding Inc (ATHI) to secured the debt know that Behavioral Health Holdings, Inc.(BHHI), who apparently is American Treatment Holding Inc (ATHI), had a judgement in excess of $1.3 million against it? If all of this connection is valid, did Shawn Leon do his due diligence before committing Ethema Health ($GRST) to this venture?
BEHAVIORAL HEALTH HOLDINGS, INC (BHHI) Name Change to AMERICAN TREATMENT HOLDINGS INC (ATHI) August 8th 2019.
http://search.sunbiz.org/Inquiry/CorporationSearch/ConvertTiffToPDF?storagePath=COR%5C2019%5C0911%5C33356023.Tif&documentNumber=L19000024560
Enter website as guest > copy and paste the case number > open case > select tab named dockets & documents.
BOYNTON PARTNERS LLC V PEACE OF MIND COUNSELING SERVICES INC
CASE NUMBER: 50-2019-CA-006523-XXXX-MB
West Palm Beach Circuit Court
https://appsgp.mypalmbeachclerk.com/eCaseView/landingpage.aspx
For the quarterly period ended March 31, 2023
https://www.otcmarkets.com/filing/html?id=16673787&guid=y1T-kHcGm-XrcLh
17. Commitments and contingencies
a. Options granted to purchase shares in ATHI
On July 12, 2020, the Company entered into a five year option agreement with Leonite Capital LLC (“Leonite”) and other investors (collectively the “Transferees”). The Company agreed to sell to Leonite a portion of the total outstanding shares of ATHI from the shares of ATHI held by the company. The Company provided Leonite an option to purchase 4,000,000 shares of ATHI from the Company for a purchase consideration of $0.0001 per share (a total consideration of $400), based on the advances that Leonite made to the Company totaling $396,000. Leonite shall share in all distributions by ATHI to the Company, on an as exercised basis, equal to the advances made by Leonite to the Company, thereafter the option will be reduced to 50% of the shares exercisable under the option.
On September 14, 2020, the Company entered into a five year option agreement with Ed Blasiak (“Blasiak”) whereby the Company agreed to sell to Blasiak a portion of the total outstanding shares of ATHI. The Company provided Blasiak an option to purchase 571,428 shares of ATHI from the Company for a purchase consideration of $0.0001 per share (a total consideration of $57), based on the advances that Blasiak made to the Company totaling $50,000. Blasiak shall share in all distributions by ATHI to the Company, on an as exercised basis, equal to the advances made by Blasiak to the Company, thereafter the option will be reduced to 50% of the shares exercisable under the option.
On October 29, 2020, the Company entered into a five year option agreement with First Fire whereby the Company agreed to sell to First Fire a portion of the total outstanding shares of ATHI. The Company provided First Fire an option to purchase 1,428,571 shares of ATHI from the Company for a purchase consideration of $0.0001 per share (a total consideration of $143), based on the advances that First Fire made to the Company totaling $120,000. First Fire shall share in all distributions by ATHI to the Company, on an as exercised basis, equal to the advances made by First Fire to the Company, thereafter the option will be reduced to 50% of the shares exercisable under the option.
On October 29, 2020, the Company entered into a five year option agreement entered into with Bauman, so that the Company agreed to sell to Bauman a portion of the total outstanding shares of ATHI. The Company provided Bauman an option to purchase 1,428,571 shares of ATHI from the Company for a purchase consideration of $0.0001 per share (a total consideration of $143), based on the advances that Bauman made to the Company totaling $120,000. Bauman shall share in all distributions by ATHI to the Company, on an as exercised basis, equal to the advances made by Bauman to the Company, thereafter the option will be reduced to 50% of the shares exercisable under the option.
For the quarterly period ended March 31, 2020
https://www.otcmarkets.com/filing/html?id=14411621&guid=y1T-kHcGm-XrcLh
16. Subsequent events
On June 30, 2020, the Company entered into an agreement whereby the Company will acquire 51% of American Treatment Holdings, Inc. (“ATHI”) from The Q Global Trust (“Seller”) and Lawrence B Hawkins (“Hawkins”), which in turn owns 100% of Peace of Evernia Health Services LLC. (“Evernia”), which operates drug rehabilitation facilities. The consideration for the acquisition is a loan to be provided by the purchaser to Evernia in the amount of $500,000. As of June 30, 2020, the Company had advanced Evernia approximately $98,000 including accrued interest thereon and the Company has agreed to advance an additional amount of approximately $202,000 (“the First Tranche”) within a reasonable time of concluding the loan agreements. The timing of the balance of the advance of approximately $200,000 will be mutually agreed upon between the parties.
The Company has a 180 day option from the advancement of the First Tranche to purchase an additional 9% of ATHI for a purchase consideration of $50,000, payable to the Seller.
On June 30, 2020, the Company entered into an agreement whereby the Company will acquire 51% of Behavioral Health Holdings, Inc. (“BHHI”) from The Q Global Trust (“Seller”) and Lawrence B Hawkins, which in turn owns 100% of Peace of Mind Counseling Services, Inc. (“PMCS”), which operates drug rehabilitation facilities. The consideration for the acquisition is still to be determined.
The Company has a 180 day option, from the advancement of the first tranche to Evernia, to purchase an additional 9% of BHHI for a purchase consideration still to be determined, payable to the Seller.
Lawrence Hawkins may be a new name for many. I detailed who he in in a couple of posts one which involves a complaint that he was demanding too much for commission for funds raised for the treatment center start-up. Quite the tangled web.
Lawrence Hawkins Post
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=171703049
Lawrence Hawkins Post Regarding Commission Complaint
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=171957689
GRST - ENOUGH IS ENOUGH!!!.....I am Not going to reply to you any more!!!
The website that you reference looks at a lot of stocks in a general manner in my opinion and likely do not investigate entities like subsidiaries. It is difficult to unwrap this subsidiary because so many names are being used to represent the same treatment center business. In fact, up until recently the treatment center was referred to as Addiction Recovery Institute of America, LLC (ARIA).
The same annual filing document for Peace of Mind Counseling Services, Inc for April 2022, is signed of at the bottom by Lawrence Hawkins as CEO and not Shawn Leon. Source for the documents is below, links are at the bottom of the page.
Sunbiz.org
http://search.sunbiz.org/Inquiry/corporationsearch/SearchResultDetail?inquirytype=EntityName&directionType=Initial&searchNameOrder=PEACEMINDCOUNSELINGSERVICES%20P130001015170&aggregateId=domp-p13000101517-abfd034b-bcb7-47a3-a2dd-f52986d014a2&searchTerm=PEACE%20OF%20MIND%20CONSULTING%20SERVICES%20L.L.C.&listNameOrder=PEACEMINDCONSULTINGSERVICES%20L190000090550
GRST - I do not well understand everything........I am "Questioning" why it seem that it is not relevant to these Accredited Financial Analyst to take this Matter into Consideration???....Maybe they are two Separate Things and Not Related???......
***SimplyWallStreet***
https://simplywall.st/stocks/us/healthcare/otc-grst/ethema-health - ***From Post #46312***
---------------------------------------------------------------------------------------------------
***Financial Times***
***https://markets.ft.com/data/equities/tearsheet/profile?s=GRST:PKC
***COMMITMENT***
It is fundamental to our integrity and success that we uphold the highest possible standards of ethical and professional journalism, and that we are seen to do so. The benchmark for the FT’s journalistic practices is set by our FT Editorial Code. Compliance with the code is an obligation for all FT editorial staff.
Here is an interesting twist. The last document in the case filed May 23rd 2023 has distilled the defendant to be Peace of Mind Counseling Services Inc. d/b/a Evernia Station. This is the name of the company at the time of the incident.
Who is Peace of Mind Counseling Services Inc? They are Behavioral Health Holdings, Inc. who changed their name to American Treatment Holding Inc (ATHI) in August 2019, one month after the alleged wrongful death incident. The Evernia (ARIA) treatment center shares are held by American Treatment Holding Inc (ATHI). All entiites have the treatment center address of 950 Evenia street.
An interesting document dated March 2023 filed as" 2023 FLORIDA PROFIT CORPORATION ANNUAL REPORT" has the names Peace of Mind Counseling Services Inc, Behavioral Health Holdings, Inc, Lawrence Hawkins. At the bottom of this document is the CEO Shawn Leon "Electronic Signature of Signing Officer/Director Detail" dated 03/09/2023. Why is Shawn Leon, the CEO of Ethema Health (GRST), signing off on the annual for Peace of Mind Counseling Services Inc? Click on image to enlarge or simply use the link to the document.
BEHAVIORAL HEALTH HOLDINGS, INC (BHHI) Name Change to AMERICAN TREATMENT HOLDINGS INC (ATHI) August 8th 2019.
http://search.sunbiz.org/Inquiry/CorporationSearch/ConvertTiffToPDF?storagePath=COR%5C2019%5C0911%5C33356023.Tif&documentNumber=L19000024560
Search as guest > copy and paste case number >
https://appsgp.mypalmbeachclerk.com/eCaseView/landingpage.aspx
Wrongful Death Lawsuit - status: Open
Case Number : 50-2021-CA-002289-XXXX-MB
02/19/2021 - STRICKLIN, MARK V BEHAVIORAL HEALTH HOLDINGS INC
MARK STRICKLIN, as the Personal
Representative of THE ESTATE OF SETH
CONNOR STRICKLIN, Deceased,
Plaintiff,
vs.
PEACE OF MIND COUNSELING
SERVICES, INC., a Florida Profit
Corporation d/b/a EVERNIA STATION;
TRANSFORMATIONS TREATMENT
CENTER, INC., a Florida Profit
Corporation
http://search.sunbiz.org/Inquiry/CorporationSearch/GetDocument?aggregateId=domp-p13000101517-abfd034b-bcb7-47a3-a2dd-f52986d014a2&transactionId=p13000101517-cf56f41b-6590-4948-863a-2acf3333fb6c&formatType=PDF
Entity Name: PEACE OF MIND COUNSELING SERVICES, INC
Name and Address of Current Registered Agent:
BEHAVIORAL HEALTH HOLDINGS, INC.
950 EVERNIA STREET
WEST PALM BEACH, FL 33401 US
SIGNATURE:
Electronic Signature of Registered Agent Date
Officer/Director Detail :
I hereby certify that the information indicated on this report or supplemental report is true and accurate and that my electronic signature shall have the same legal effect as if made under
oath; that I am an officer or director of the corporation or the receiver or trustee empowered to execute this report as required by Chapter 607, Florida Statutes; and that my name appears
above, or on an attachment with all other like empowered.
SIGNATURE:
Electronic Signature of Signing Officer/Director Detail Date
LAWRENCE HAWKINS
FILED
Mar 09, 2023
Secretary of State
7262851910CC
SHAWN LEON CEO 03/09/2023
2023 FLORIDA PROFIT CORPORATION ANNUAL REPORT
No
03/09/2023
GRST - << Not Knowing all the Facts....As Usual you Assume the worse>>!...
*** In Your "Gifted Mind"......Everyone is Wrong "Except You"! (Pun Intended)
***SimplyWallStreet***
https://simplywall.st/stocks/us/healthcare/otc-grst/ethema-health - ***From Post #46312***
---------------------------------------------------------------------------------------------------
***Financial Times***
***https://markets.ft.com/data/equities/tearsheet/profile?s=GRST:PKC
***COMMITMENT***
It is fundamental to our integrity and success that we uphold the highest possible standards of ethical and professional journalism, and that we are seen to do so. The benchmark for the FT’s journalistic practices is set by our FT Editorial Code. Compliance with the code is an obligation for all FT editorial staff.
Not knowing all the facts is why you conduct due diligence.. Assuming the worse about information found about an OTC ticker is the best defense when it comes to capital preservation.
Too many questions means that you look elsewhere for a trade in my opinion. Traders looking elsewhere means that the regulation "A" offering for desperately needed funds is not viable. Will anybody subscribe to the offering unless they believe that they will able to find retail traders to unload those shares in the very short term.
GRST - Not Knowing all the Facts....As Usual you Assume the worse!........It occur to you that you might not know all there is to know???.....But....
****You are the Best Judge!
***You are the Best Lawyer!
****You are the Best Financial Adviser!
***In your View as a Conclusion...........All Mr. Shawn Leon does it is Plain Wrong!!!
The consequences of the lawsuit go beyond the question of culpability. The fact that the situation has been going on so long and hasn't been disclosed raises a lot or questions. The huge increase in professional fees in Q4 2022 and Q1 2023 with the deterioration of their cash during the same periods may indicate a material impact on the balance sheet that surely should have been disclosed.
The June Leonite note is secured by all assets of the company. How does the litigation impact their ability to negotiate this debt obligation. How will this impact the viability of the regulation "A" offering. How is it affecting their ability to secure new loans? They ended Q1 with only $28K in cash with no indication through subsequent events to the filing date that new funding has been secured.
For the quarterly period ended September 30, 2022
https://www.otcmarkets.com/filing/html?id=16200583&guid=2UT-kn10eYd-B3h
Q3 2022 cash Balance $561,083
Professional fees for Q3 $19,131
For the fiscal year ended: December 31, 2022
https://www.otcmarkets.com/filing/html?id=16535244&guid=tnu-kFMehiFUdth
Cash Balance end of 2022 $140,757
Total Professional fees 2022 $463,678
Q4 2022 professional fees $282,811
For the quarterly period ended March 31, 2023
https://www.otcmarkets.com/filing/html?id=16673787&guid=tnu-kFMehiFUdth
Cash Balance end of Q1 2023 $27,580
Professional fees $111,204 for Q1
For the quarterly period ended June 30, 2022
https://www.otcmarkets.com/filing/html?id=16018411&guid=5zm-kqGiKufgcVh
Leonite Fund I, LP
Effective June 1, 2022, The Company entered into a Note Exchange Agreement whereby
..., were exchanged for a new Senior Secured Convertible Promissory note in the principal amount of $745,375,... .
...The Note matures on March 1, 2023, and bears interest at the minimum of 10% per annum or the Wall Street Journal quoted prime rate plus 5.75%.
The convertible note is secured by all of the assets of Ethema Health Corporation and Addiction Recovery Institute of America, LLC.
June Leonite Note 8K
https://www.otcmarkets.com/filing/html?id=15961451&guid=5zm-kqGiKufgcVh
...The obligations of the Borrower under this Note are secured pursuant to the terms of the security and pledge agreement (The "Security and Pledge Agreement" and collectively the Purchase Agreement, the "Related Documents"...
GRST - In all Fairness.......There is a Presumption of Innocence Until Proven Guilty!.....
*** The presumption of innocence entails two essential elements, namely (1) that an accused must be proven guilty beyond a reasonable doubt, and (2) that the Crown bears the burden of establishing such guilt
***From The Filing: ***On The Legal Proceeding The Company Is Saying:
***We are currently not involved in any litigation that we believe could have a material adverse effect on our financial condition or results of operations. There is no action, suit, proceeding, inquiry or investigation before or by any court, public board, government agency, self-regulatory organization or body pending or, to the knowledge of the executive officers of our company or any of our subsidiaries, threatened against or affecting our company, our common stock, any of our subsidiaries or of our companies or our subsidiaries’ officers or directors in their capacities as such, in which an adverse decision could have a material adverse effect.
http://archive.fast-edgar.com/20230522/A72SN22C7222A9Z2222R2ZYYFAAJZ222B252/
==============================================================
***Company Assessment From Accredited Analyst***
- *** There is No Concerning Event Detected, *** -*** No Mention about a Law Suit by them either***!....
***The Company For the Nine Months, Sales was USD 3.59 million compared to USD 1.05 million a year ago.
***Pass
Have shareholders been diluted over the past year?
***Shareholders Have Not Been "Meaningfully" Diluted in the past year or recently listed
***Trading at 98.5% below our estimate of its fair value
***Became Profitable this year***
***SimplyWallStreet***
https://simplywall.st/stocks/us/healthcare/otc-grst/ethema-health - ***From Post #46312***
---------------------------------------------------------------------------------------------------
***Financial Times***
***https://markets.ft.com/data/equities/tearsheet/profile?s=GRST:PKC
***Income statement (USD)
Year on year Ethema Health Corp grew revenues 148.16% from 1.94m to 4.82m while net income improved from a loss of 1.54m to a gain of 247.88k.
***COMMITMENT***
It is fundamental to our integrity and success that we uphold the highest possible standards of ethical and professional journalism, and that we are seen to do so. The benchmark for the FT’s journalistic practices is set by our FT Editorial Code. Compliance with the code is an obligation for all FT editorial staff.
-------------------------------------------------------------------------------------------------
[
GRST - INNOCENT UNTIL PROVEN GUILTY!!!
***Company Assessment From Accredited Analyst***
*** There is No Concerning Event Detected, *** -
***The Company For the Nine Months, Sales was USD 3.59 million compared to USD 1.05 million a year ago.
***Pass
Have shareholders been diluted over the past year?
***Shareholders Have Not Been "Meaningfully" Diluted in the past year or recently listed
***Trading at 98.5% below our estimate of its fair value
***Became Profitable this year
***SimplyWallStreet***
https://simplywall.st/stocks/us/healthcare/otc-grst/ethema-health - ***From Post #46312***
---------------------------------------------------------------------------------------------------
***Financial Times***
***https://markets.ft.com/data/equities/tearsheet/profile?s=GRST:PKC
***Income statement (USD)
Year on year Ethema Health Corp grew revenues 148.16% from 1.94m to 4.82m while net income improved from a loss of 1.54m to a gain of 247.88k.
***COMMITMENT***
It is fundamental to our integrity and success that we uphold the highest possible standards of ethical and professional journalism, and that we are seen to do so. The benchmark for the FT’s journalistic practices is set by our FT Editorial Code. Compliance with the code is an obligation for all FT editorial staff.
I seriously doubt that he will comment on this subject in an email reply. I would also have to believe that they have been monitoring online conversations for a very long time by now. I have been posting for months that it makes no sense that they haven't moved sooner to make the regulation "A" offering viable. The legal revelations concerning the treatment center clears this mystery up for me.
I would think that there would be legal ramifications for not disclosing this information while raising funds through equity sales. I see three attorneys listed in the case filing representing the treatment center Evernia Health. Is Ethema Health ($GRST) paying for the legal fees for their subsidiary? Reference my earlier post added below.
Professional Fees post
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=171995760
Friday, May 26, 2023 6:11:00 AM
Post# 47033 of 47038
Year ended December 31, 2022
https://www.otcmarkets.com/filing/html?id=16535244&guid=lKu-kF1BswL2zch
Professional fees 2022 $463,678
Q4 2022 professional fees $282,811
Three months ended March 31, 2023
https://www.otcmarkets.com/filing/html?id=16673787&guid=Mqu-kFsYtmI-B3h
Professional fees $111,204
GRST - I did forwarded Bubae Message # 47037 to Mr. Shawn Leon.....He deserve to know about what is being Post it on the Forum.......
***From The Filing: ***On The Legal Proceeding The Company Is Saying:
***We are currently not involved in any litigation that we believe could have a material adverse effect on our financial condition or results of operations. There is no action, suit, proceeding, inquiry or investigation before or by any court, public board, government agency, self-regulatory organization or body pending or, to the knowledge of the executive officers of our company or any of our subsidiaries, threatened against or affecting our company, our common stock, any of our subsidiaries or of our companies or our subsidiaries’ officers or directors in their capacities as such, in which an adverse decision could have a material adverse effect.
http://archive.fast-edgar.com/20230522/A72SN22C7222A9Z2222R2ZYYFAAJZ222B252/
Wishing a Good Long Weekend to all
janet
A new filing requesting to amend the original wrongful death complaint against ATHI the holding company for the Evenia treatment center was filed on Tuesday May 23rd. The amended filing claims what they "learned through discovery and investigation" alleging that the company has violated the Florida Patient Brokering Act and categorized it as felony conduct. It would seem to me that the CEO of Evernia Health should address this information about the treatment center. Click on image to enlarge.
Post detailing wrongful death lawsuit finding
Sunday, May 21, 2023 3:28:49 PM
Post# 46991 of 47036
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=171958415
Search as a guest using the case number - look under "Dockets and Documents" go to page 8 of the documents
Welcome to eCaseView, the Clerk of the Circuit Court & Comptroller’s free court records search.
https://appsgp.mypalmbeachclerk.com/eCaseView/landingpage.aspx
Wrongful Death Lawsuit - status: Open
Case Number : 50-2021-CA-002289-XXXX-MB or CASE NO.: 502021CA002289 AN
02/19/2021 - STRICKLIN, MARK V BEHAVIORAL HEALTH HOLDINGS INC
05/23/2023 MOTION PLAINTIFF'S MOTION FOR LEAVE TO AMEND COMPLAINT
2. Undersigned counsel has learned through discovery and investigation that Defendant
TRANSFORMATIONS may have violated multiple Florida criminal statutes and 2
new counts need to be added against that Defendant related to the alleged criminal
conduct.
45. Florida's Patient Brokering Act broadly prohibits offering or paying any
"commission, benefit, bonus, rebate, kickback, or bribe, directly or indirectly, in cash or in kind" or
engaging "in any split-fee arrangement, in any form whatsoever, to induce the referral of a patient
or patronage to or from a health care provider or health care facility." Fla. Stat. § 817.505(l)(a)
46. The statute also prohibits soliciting or receiving any such commission, as well as
aiding or otherwise participating in conduct prohibited by the statute. See id. § 817.505(l)(b)—(d)
49. By paying for transportation to their facility, Defendant TRANSFORMATIONS was
in violation of § 817.505, Florida Statutes, also referred to as the Florida Patient Brokering Act for
this felony conduct.
Closer look at Florida’s sober homes: Inside their fatal attraction with Wisconsin’s addicts
https://www.channel3000.com/news/local-news/closer-look-at-florida-s-sober-homes-inside-their-fatal-attraction-with-wisconsin-s-addicts/article_50d8ade9-5953-562b-91ac-77cf5cdd7714.html
...Seth Stricklin, of Janesville, overdosed just days ago at Evernia Station sober living home in West Palm Beach. His parents, Mark and Joyce, said they’ve been kept in the dark about the moments surrounding his death....
For former addicts who have made it through recovery, the scam known as the Florida shuffle is nothing new.
“There are a number of clients I have worked with that have shared with me their experiences about patient brokering when they were sent to treatment out of state,” said Skye Boughman, who works in drug poisoning prevention.
Boughman said prior to the passing of the Affordable Care Act, insurance companies would regularly cap coverage levels for those struggling with addiction.
“It put families in horrible positions where many of them took out second mortgages on their homes in order to have a chance to save their child’s lives,” she said.
After the ACA passed, however, she said sober homes began to appear in states like Florida, California and Arizona. Boughman said these homes exist not to heal people of their addictions, but to make money.
“Some of the places that popped up were very unscrupulous and really took advantage of people and that’s when we start to see patient brokering,” she said.
Dozens arrested in patient-brokering scheme connected to Lake Park lab
https://www.palmbeachpost.com/story/news/local/2019/04/02/dozens-arrested-in-patient-brokering-scheme-connected-to-lake-park-lab/5472744007/
i wonder when the next 100mil dump will be. and only 12mil on the ask at 4 lol i'm sure there's at least another 100mil waiting to go up there. is shawn still on vacation?
Not sure of Ill will, but none sense for sure.
GRST - This Board is Full of Ill Will and Nonsense!.....
An interesting number in the recent reports is the professional fees line item. The total for 2022 was $463,678 compared to $132,275 for 2021. Q2 2022 professional fees were $112,149, likely because of the debt exchange agreement resulting in the Leonite June note and the regulation "A" offering work. Very little spent in Q3 2022 but Q4 activity resulted in a $282,811 charge. Q1 2023 professional fees was $111,204 which is close to the fees for the entire year of 2021 when they were working on the acquisition and start-up of the treatment center..
Three months ended March 31, 2022
https://www.otcmarkets.com/filing/html?id=15821144&guid=lKu-kF1BswL2zch
Professional fees 49,587
Three months ended June 30, 2022
https://www.otcmarkets.com/filing/html?id=16018411&guid=lKu-kF1BswL2zch
Professional fees $112,149
Three months ended September 30, 2022
https://www.otcmarkets.com/filing/html?id=16200583&guid=lKu-kF1BswL2zch
Professional fees $19,131
Year ended December 31, 2022
https://www.otcmarkets.com/filing/html?id=16535244&guid=lKu-kF1BswL2zch
Professional fees 2022 $463,678
Q4 2022 professional fees $282,811
Three months ended March 31, 2023
https://www.otcmarkets.com/filing/html?id=16673787&guid=Mqu-kFsYtmI-B3h
Professional fees $111,204
Pretty quiet today. The quarterly wasn't pretty but they normally drop a press release none the less. Maybe the next press release is about much more. The type of news that is dropped late or after hours on a Friday. Especially a long weekend Friday. I'm expecting expecting a new filing soon.
We're gonna have to wait and see what happens. I will hold on to my shares and forget about it for a few months. A lot of progress have been made and a lot needed done.
So many here are in denial when it comes to the regulation "A" offering. This is what will settle the balance of the debt that is being renegotiated in my opinion. That is if they ever get their ducks in a row and finally make it a viable option. A lot of dilution on the way and it makes no sense without a reverse split.
Yup, that would be the only way to pay the debt or sell some of the properties. It will take a while but it may happen.
If I were Leonite I believe that I would let the three 2022 notes ride for a while at the 24% and fees for a while and forget about the assets exchange. Maybe see if I could make even more converting it through the regulation "A" offering. Looks like the new forbearance date on the June note is now June 8th. Google "fundamental transaction clause."
Ethema Extends Dates for Debt Repayment and Real Estate Closing
March 01, 2023 08:00 ET
| Source: Ethema Health Corporation
https://www.globenewswire.com/en/news-release/2023/03/01/2618141/0/en/Ethema-Extends-Dates-for-Debt-Repayment-and-Real-Estate-Closing.html
Ethema Health Corporation (OTCPINK: GRST) (“Ethema”, “GRST” or the “Company”), has signed an extension and forbearance agreement with Leonite Capital Inc. extending the due date for its note due March 1, 2023. The Company will continue to pay interest on the note and it will be due May 8, 2023.
For the quarterly period ended March 31, 2023
https://www.otcmarkets.com/filing/html?id=16673787&guid=CFu-kFXCNXKfJth
Leonite Fund I, LP
Effective June 1, 2022, The Company entered into a Note Exchange Agreement whereby the convertible promissory notes entered into with Labrys Fund LP on May 7, 2021, with. A principal outstanding of $341,000, and on June 2, 2021 with a principal outstanding of $230,000 and accrued interest thereon of $25,300, were exchanged for a new Senior Secured Convertible Promissory note in the principal amount of $745,375, including an OID of $149,075. The Note matured on March 1, 2023, and bore interest at the minimum of 10% per annum or the Wall Street Journal quoted prime rate plus 5.75%. The note is currently in default, although no default has been declared and management is negotiating with Leonite on a resolution.
Interest is payable monthly and the note may be prepaid with a prepayment penalty of 10%. The note is convertible into common stock at a fixed conversion price of $0.01 per share, subject to anti-dilution adjustments and a fundamental transaction clause allowing the note holder to receive the same consideration as common stockholders would receive.
The convertible note is secured by all of the assets of Ethema Health Corporation and Addiction Recovery Institute of America, LLC.
On March 1, 2023, the Company entered into a forbearance agreement with Leonite whereby the parties agreed to extend the maturity date of the note to June 8, 2023, the Company will continue to pay interest on the note, until repaid. The note has not been repaid as yet and the Company in continuing to negotiate the resolution of the note.
8. Short-term Notes
Leonite Capital, LLC
Secured Promissory Notes
On March 1, 2022, the Company entered into a secured Promissory Note in the aggregate principal amount of $124,000 for net proceeds of $100,000 after an original issue discount of $24,000. Due to the failure to repay the note by due date, a penalty of $37,200 was added to the principal outstanding and the Company incurs a monthly monitoring fee of $2,000 per month. In addition the note earns interest at a default rate of 24% per annum on the total balance outstanding, including the monthly monitoring fee and accrued interest.
The Note had a maturity date of April 1, 2022. This note has not been repaid at the date of this report. We are in negotiations with Leonite to settle the balance outstanding and no default has been declared.
The balance outstanding on the note, including default penalty, interest accrued and monthly monitoring fees is $231,481 as of March 31, 2023.
On May 3, 2022, the Company, entered into a secured Promissory Note in the aggregate principal amount of $76,250 for net proceeds of $61,000 after an original issue discount of $15,250. Due to the failure to repay the note by due date, a penalty of $22,875 was added to the principal outstanding and the Company incurs a monthly monitoring fee of $2,000 per month. In addition the note earns interest at a default rate of 24% per annum on the total balance outstanding, including the monthly monitoring fee and accrued interest.
The Note had a maturity date of June 17, 2022. This note has not been repaid at the date of this report. We are in negotiations with Leonite to settle the balance outstanding and no default has been declared.
The balance outstanding on the note, including default penalty, interest accrued and monthly monitoring fees is $143,634 as of March 31, 2023.
Any news on real estate deal ,either selling a property to get some cash, to reduce debt , or in buying the land near college
I believe the numbers are meaningless at this point. The debt is owned by Ethema Health (GRST). The treatment center and the Canadian property will be given up for secured debt to the real investors who are secured by direct shares of the subsidiaries. The statement "non-real property debt" not only leaves the $2.6 million owed to the Leons, the more than $4 million owed to the series "N" note holders, but also the convertible debt not secured by assets. If they do not get a nice return from the regulation "A" offering they will cease to be a going concern in my opinion. Bottom line is that retail traders will need step up with their donations because debt holders and the business doesn't pay the bills at the end of the day.
Ethema Extends Dates for Debt Repayment and Real Estate Closing
March 01, 2023 08:00 ET
| Source: Ethema Health Corporation
https://www.globenewswire.com/en/news-release/2023/03/01/2618141/0/en/Ethema-Extends-Dates-for-Debt-Repayment-and-Real-Estate-Closing.html
Mr. Shawn Leon, Company CEO, reported, ...
...This will help clean up the balance sheet and together with our current efforts we expect that only the Series N convertible notes and the shareholder advances to my family will remain as the only non-real property debt by the end of the second quarter this year.”
Aside from the assets for secured debt it also looks like the series "B" preferred shares will be part of the current debt negotiations. The current Q1 filing has reclassified these shares "settle the total liabilities owing to them". This is going to be a heavy lift for the regulation "A" offering that isn't viable at this point. Again, I do not believe many here will be happy with the next press release.
14. Stockholder’s deficit
c) Series B Preferred shares
Authorized and outstanding
The Company has authorized 400,000 Series B preferred shares with a par value of $1.00 per share. The company has issued and outstanding 400,000 Series B Preferred shares at March 31, 2023 and December 31, 2022.
The Series B preferred shares are senior secured and were mandatorily redeemable by the Company on July 1, 2021, and were originally classified as mezzanine debt. These Series B preferred shares have been reclassified as current liabilities for the three months ended March 31, 2023 as they meet the definition of liabilities in terms of ASC 480- debt and are no longer contingently convertible, due to the fact that the redemption date has passed and the Company is currently negotiating with the preferred note holders to settle the total liabilities owing to them, including certain convertible notes. The Company continues to accrue dividends at the rate of 6% per annum.
December 2020 debt restructuring 8K Filing
https://www.otcmarkets.com/filing/html?id=14554778&guid=OHu-kqU6x0i-B3h
Leonite Capital LLC
On July 12, 2020, the company entered into a debt extinguishment agreement with Leonite whereby the following occurred:
8. $400,000 of the note was converted into series B Preferred stock in the Company for a 12-month period, mandatorily redeemable by the Company accruing dividends at 6% per annum payable in cash or stock, subject to certain conditions.
Yeah ok, the debt is still present, if the debt was that easy to eliminate, it would be gone already. So instead, the interest on the debt is choking the company.
Must be reading a different filing than the one that just came out for the first quarter of 23?
It shows a net loss of $186,248 from in patient services.
Same quarter from 22 shows a net loss of $150,107.
Net from in patient service before taxes and debt was $15,727. Hardly "huge profit". My nephew makes more than that with his lawn care business ROFL!
The debt is from past mistakes. GRST now proved they can make a huge profit with their business model. The debt is holding the profit down. The debt from the past can only be resolved by growing the business, growing revenues, and growing profit. The bigger the company, the smaller the % of debt will be, and the faster they can pay it back.
I see progress and improvement quarter after quarter. As you said, the problem is the debt. I am not sure how they're gonna tackle that.
It is about to get real in my opinion. Despite new receivables funding for the quarter of $190K they ended the quarter with $27.6K. No new receivables funding indicated in the subsequent events so how do they continue to make the payments on the receivables funding payments let alone the rest? That is $18.5K in payments per WEEK!! I'm thinking that the can kicking is bouncing aganst the wall at the end of the road by now. LOL Something has happened in Q2 and we will see soon I suspect. Stayed tuned!!
For the quarterly period ended March 31, 2023
https://www.otcmarkets.com/filing/html?id=16673787&guid=DCu-kaTrf7_TB3h
11. Receivables funding
September 26, 2022 Funding
On September 26, 2022, the Company, through its 75% held subsidiary, Evernia Health Center, LLC, entered into a Receivables Sale Agreement with Itria Ventures LLC (“Itria”), whereby $310,000 of the Receivables of Evernia were sold to Itria, for gross proceeds of $250,000. The Company also incurred fees of $5,500, resulting in net proceeds of $244,500. The Company is obliged to pay 7.41% of the receivables until the amount of $310,000 is paid in full, with periodic repayments of $6,458 per week. The guarantor of the funding is a minority shareholder in ATHI.
The Company made weekly cash payments of $6,458 totaling $167,917 on the September 26, 2022 funding. The balance outstanding at March 31, 2023 was $147,083, less unamortized discount of $30,949.
December 13, 2022 Funding
On December 13, 2022, the Company, through its 75% held subsidiary, Evernia Health Center, LLC entered into a Receivables Sale Agreement with Itria Ventures LLC (“Itria”), whereby $305,000 of the Receivables of Evernia were sold to Itria, for gross proceeds of $250,000. The Company also incurred fees of $2,500, resulting in net proceeds of $247,500. The Company is obliged to pay 6.08% of the receivables until the amount of $305,000 is paid in full, with periodic repayments of $6,354 per week. The guarantor of the funding is a minority shareholder in ATHI.
The Company made weekly cash payments of $6,354 totaling $88,958 on the December 13, 2022 funding. The balance outstanding at March 31, 2023 was $211,042, less unamortized discount of $40,228.
January 19, 2023 Funding
On January 19, 2023, the Company received funding from an agreement entered into on December 14, 2022 through its 75% held subsidiary, Evernia Health Center, LLC entered into a Receivables Sale Agreement with Bizfund.com (“Bizfund)”), whereby $132,000 of the Receivables of Evernia were sold to Bizfund, for gross proceeds of $100,000. The Company is obliged to pay 15.0% of the receivables until the amount of $132,000 is paid in full, with periodic repayments of $2,750 per week. The guarantor of the funding is a minority shareholder in ATHI.
The Company made weekly cash payments of $2,750 totaling $24,750 on the January 19, 2023 funding. The balance outstanding at March 31, 2023 was $107,250, less unamortized discount of $26,536.
February 14, 2023 Funding
On February 14, 2023, the Company, through its 75% held subsidiary, Evernia Health Center, LLC entered into a Receivables Sale Agreement with Fox Business Funding (“Fox”), whereby $118,800 of the Receivables of Evernia were sold to Fox, for gross proceeds of $90,000. The Company is obliged to pay 8.0% of the receivables until the amount of $118,800 is paid in full, with periodic repayments of $2,970 per week. The guarantor of the funding is a minority shareholder in ATHI.
The Company made weekly cash payments of $2,970 totaling $17,820 on the February 14, 2023 funding. The balance outstanding at March 31, 2023 was $100,980, less unamortized discount of $25,183.
GRST - No Dooms and Glooms Either!....
There isn't much to brag about in a press release for this quarter. Q3 2022 cash balance was $561K, started Q1 2023 with $140.7 K in cash, ended the first quarter with $27.6K. The receivables for Q3 2022 were $287K, $337K end of year, 543K end of Q1 2023. Another troubling trend that suggests they are having difficulty with collections. Accounts payable $351K for Q3 2022, started Q1 2023 with $170.0K ended the quarter with $372.8K. Likely no coincidence that the increasing receivables number and low cash has resulted in an increasing payables number. The balances for receivables funding, short term notes, convertible notes are all up mostly due to accrued interest that has nearly doubled year over year. I doubt anyone will like the next press release because they need to set the stage for the regulation offering which will not sell without dramatic changes here.
For the quarterly period ended March 31, 2023
https://www.otcmarkets.com/filing/html?id=16673787&guid=DCu-kaTrf7_TB3h
March 31,2023 December 31, 2022
Cash $27,580 $140,757
Accounts receivable, net $543,119 $337,074
Accounts payable and accrued liabilities $372,830 $170,934
Receivables funding $443,459 $416,731
Short-term notes $496,923 $460,53
Convertible notes, net of discounts $5,351,270 $5,269,250
Interest expense
Interest expense was $157,096 and $80,768 for the three months ended March 31, 2023 and 2022, respectively, an increase of $76,328 or 94.5%, primarily due to penalty interest rates incurred on convertible notes and short term notes which had matured during previous periods.
Net loss
Net loss was $175,717 and $164,985 for the three months ended March 31, 2023 and 2022, respectively, an increase of $10,732 or 6.5%. The increase is primarily due to the increase in interest expense of $76,328, the reduction in the derivative liability movement of $197,476, the reduction in the foreign exchange movement of $92,601, offset by the reduction in amortization of debt discount of $175,911, which is fully discussed above.
GRST - <<The current filing doesn't mention it either>>
*** Company Assessment From Accredited Analyst*** - *** No Mention by them Either!***
*** There is No Concerning Event Detected, *** - The Company For the Nine Months, Sales was USD 3.59 million compared to USD 1.05 million a year ago.
***Pass
Have shareholders been diluted over the past year?
***Shareholders Have Not Been "Meaningfully" Diluted in the past year or recently listed
***Trading at 98.5% below our estimate of its fair value
***Became Profitable this year
***SimplyWallStreet***
https://simplywall.st/stocks/us/healthcare/otc-grst/ethema-health - ***From Post #46312***
***Financial Times***
***https://markets.ft.com/data/equities/tearsheet/profile?s=GRST:PKC
***Income statement (USD)
Year on year Ethema Health Corp grew revenues 148.16% from 1.94m to 4.82m while net income improved from a loss of 1.54m to a gain of 247.88k.
***COMMITMENT***
It is fundamental to our integrity and success that we uphold the highest possible standards of ethical and professional journalism, and that we are seen to do so. The benchmark for the FT’s journalistic practices is set by our FT Editorial Code. Compliance with the code is an obligation for all FT editorial staff.
==============================================================
The current filing doesn't mention it either. The fact is there are two open cases. One against ARIA and one against the treatment center Evernia Health.
Search the case number as guest.
Welcome to eCaseView, the Clerk of the Circuit Court & Comptroller’s free court records search.
https://appsgp.mypalmbeachclerk.com/eCaseView/landingpage.aspx
Slip and Fall Case
Case Number : 50-2021-CA-002289-XXXX-MB
02/19/2021 - STRICKLIN, MARK V BEHAVIORAL HEALTH HOLDINGS INC
Wrongful Death Case
Case Number: 50-2023-CA-008318-XXXX-MB
03/23/2023 - FRANKLIN, ANTHONY V ADDICTION RECOVERY INSTITUTE OF AMERICA
GRST - <<Yeah current financial report states that there are no legal proceedings going on against Ethema>>
As a Matter Of FACT.......On The Legal Proceeding The Company Is Saying:
***We are currently not involved in any litigation that we believe could have a material adverse effect on our financial condition or results of operations. There is no action, suit, proceeding, inquiry or investigation before or by any court, public board, government agency, self-regulatory organization or body pending or, to the knowledge of the executive officers of our company or any of our subsidiaries, threatened against or affecting our company, our common stock, any of our subsidiaries or of our companies or our subsidiaries’ officers or directors in their capacities as such, in which an adverse decision could have a material adverse effect.
http://archive.fast-edgar.com/20230522/A72SN22C7222A9Z2222R2ZYYFAAJZ222B252/
One final post… I checked the L2 a couple of days ago and the top bid was 75 million shares and I think the next bid was 35 million so there is interest at this price so hopefully that can put things into perspective for the longs on this ticker.
$GRST
Yeah current financial report states that there are no legal proceedings going on against Ethema.
See you next quarter
GLTA
Ethema continues to tread water with 1.3 million in revenue for 3 months. 500k+ in receivables up from 300+k in December not included in the revenue figure.
The receivables are the income drop in the bucket scenario that I saw as a potential here. This revenue potential could out earn its debt issues if the company continues to tread water and kick the can down the road debt wise.
The receivables will continue to grow and in the financials they state that this figure is a realistic number that could be received in the future.
The debt is a issue, I’m not sure how they will expand to a new location but the demand is probably there.
My two cents… take it for what it’s worth and read the financials yourself to come to a conclusion.
Holding or bust
GLTA
Past financials stated that no litigation was going on against Ethema.
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