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We all know that this company keeps everything that they REALLY are doing very close to the vest. The beauty of this model for Leonite is that they have shareholders of Ethema (GRST) to finance this facility.
Private Equity’s Push into the
Mental Health Space
https://vectormedicalgroup.com/app/uploads/Q4-2021-Industry-Brief_Final.pdf
Two PE-owned behavioral health companies initiate closures, layoffs in Florida and Ohio
February 16, 2023
https://pestakeholder.org/news/two-pe-owned-behavioral-health-companies-initiate-closures-layoffs-in-florida-and-ohio/
She went on to caution, however, about the lack of transparency that characterizes this industry: “more than other areas of health care, addiction medicine or mental health treatment are very, very opaque in the same way that private equity as an industry is very opaque. Couple those together, you have basically a black box.”
Here is the picture that I put together that forms my opinion of what I believe is going on. I found this January 2023 article that describes private equities interest in this health care segment. Leonite has made a ton of money financing this business and are now in a position to simply take it in my opinion.
Leonite and other investors already had debt securing nearly the entire original 51% ownership of ATHI shares through their options. June 2022 Leonite did the exchange agreement or $745K for the $596K in Labrys fund debt. This note is secured by the terms of the "Security and Pledge Agreement" that wasn't made available to shareholders. They also added the two very short term notes totaling $160K that are now worth roughly $410K after the penalties, 24% interest and the $2000 a month monitoring fee. So Leonite has leveraged relatively little to get this company deeply committed over the past several years.
It appears to me that the wrongful death lawsuit has been a hold up for negotiations. Notice that the day before the mediation report that the Evernia Health Center was dropped leaving Peace of Mind Counseling Services, Inc. I see this as shifting the liability from the treatment center completely onto Ethema Health (GRST) who owns 75% of Peace of Mind Counseling. The treatment center is fairly clear from the debts and other encumbrances now which are shouldered by Ethema Health (GRST) shareholders.
Bubae
Saturday, June 17, 2023 3:17:45 AM
Post# 47235
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=172159386
Bubae
Saturday, June 17, 2023 10:19:18 PM
Post# 47238
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=172162047
Some addiction treatment centers turn big profits by scaling back care
BY RENUKA RAYASAM, BLAKE FARMER
JANUARY 30, 2023 / 5:00 AM / KAISER HEALTH NEWS
https://www.cbsnews.com/news/drug-treatment-rehab-private-equity-profits/
But addiction researchers and private equity watchdogs said models like the one used by BRC — charging high patient fees without guaranteeing access to evidence-based care — are common throughout the country's addiction treatment industry.
In 2021, 127 mergers and acquisitions took place in the behavioral health sector, which includes treatment for substance use disorders, a rebound after several years of decline, according to investment banking firm Capstone Partners.
Private equity investment drove much of the activity in an industry that is highly fragmented and rapidly growing, and has historically had few guardrails to ensure patients are getting appropriate care.
industry critics say private equity groups are investing in centers with unproven practices and cutting services that, while unprofitable, might support long-term recovery.
But, when looking for investments, private equity groups focus on profit, not necessarily how well the program is designed, said Laura Katz Olson, a political science professor at Lehigh University who wrote a book about private equity's investment in American health care.
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"...
No news for the wishful thinkers, at least good news that is. Zero reasons to buy here as you can see from the complete lack of volume. Anyone check rich boy for a pulse lately?
Not yet, but it will show up! I have an ins. office right down the street from my house...it's great news.
There really is no end of the points available to call this company out on. I was looking for something and visited the Ethema Health website and found the description for the ARIA facility a bit odd. There is the 62 bed count claim that that doesn't agree with the 41 bed count description in the regulation "A" offering. There is also a description of the property that sounded oddly familiar. The website description is for the 174 bed facility at 5400 East Avenue, West Palm Beach which was closed in January 2020 stated exactly as it was in a June 2018 press release. Looks like they made a conscience decision to update the bed count but not the property description. It would seem to me that a publicly traded company should take care to avoid potential misstatements of fact.
https://ethemahealth.com/our-facility/
INTRODUCING ARIA.
Addiction Recovery Institute of America (ARIA), is Ethema Health’s 62-bed addiction treatment facility located in West Palm Beach, Florida. The Property is large but unique, in that it has four separate self-contained treatment buildings with overnight beds, creating four separate smaller treatment centers in one location. This offers the Company tremendous flexibility with programming specialties in different buildings.
Ethema Expands into 174-Bed Florida Facility
June 07, 2018 09:27 ET
https://www.globenewswire.com/en/news-release/2018/06/07/1518496/0/en/Ethema-Expands-into-174-Bed-Florida-Facility.html
The Property is large but unique, in that it has four separate self-contained treatment buildings with overnight beds, creating four separate smaller treatment centers in one location. This offers the Company tremendous flexibility with programming specialties in different buildings.
FORM 1-A
REGULATION A OFFERING STATEMENT
https://www.otcmarkets.com/filing/html?id=16623154&guid=2vT-kpbg223AB3h
Summary
...We operate the Addiction Recovery Institute of America, a 41-bed addiction treatment facility located in West Palm Beach, Florida...
Funny, didn't show up on the Ethema Health twitter feed. Could this simply be made up? I on the other have it on good authority that the billing percentage from the same single insurer that was reported in the November 2021 press release is still the same.
DeClaes @Declaes
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Ethema Releases Third Quarter Results
November 22, 2021 19:08 ET
https://www.globenewswire.com/en/news-release/2021/11/23/2339427/0/en/Ethema-Releases-Third-Quarter-Results.html
...Blue Cross has been billed for approximately 96% of the total revenue in the quarter...
Great $GRST News again!
https://twitter.com/Declaes/status/1671229345765941248?t=xZZuPvAQYufTUPmqpydkGA&s=19
Garbage, everyone should have sold when it was over .01, that was the chance to make some money here, in my opinion and experience with this one.
I wonder if ARIA will have better luck than the Hollywood Florida Burger King with the slip and fall lawsuit. The claim sheet indicates damages in excess of $100K. The plaintiffs attorney is Susan Payne a Trial Attorney at Morgan & Morgan. Anyone want to guess if we see anything about this lawsuit in a filing? Yet another expensive lawsuit to defend. Select image below to enlarge.
Susan Payne
Trial Attorney at Morgan & Morgan,
https://www.linkedin.com/in/susan-payne-b844048/
Burger King to pay roughly $8 million to Florida customer for slip-and-fall
https://winknews.com/2023/05/25/burger-king-to-pay-roughly-8m-to-florida-customer-for-slip-and-fall/
Search as guest > copy and paste case number >
https://appsgp.mypalmbeachclerk.com/eCaseView/landingpage.aspx
CASE NUMBER: 50-2023-CA-008318-XXXX-MB
CASE STYLE: FRANKLIN, ANTHONY V ADDICTION RECOVERY INSTITUTE OF AMERICA
Filing Date 03/23/2023
17. As a direct and proximate result of the negligence of Defendant, Plaintiff suffered
bodily injury in and about Plaintiff’s body and extremities, resulting in pain and suffering,
disability, disfigurement, permanent and significant scarring, mental anguish, loss of the capacity
for the enjoyment of life, expense of hospitalization, medical and nursing care and treatment, loss
of earning, loss of the ability to earn money, and aggravation of a previously existing
condition. The losses are either permanent or continuing and Plaintiff will suffer these losses in
the future
I made money off a couple of good trades early 2021 and then bought back in. They had major share dumpage mid July 2021 and I bailed banking an over all loss at around .003 a share. I played the volatility again around .002 and that was useless as well. I would have to disagree that I sold too early. LOL. In fact if I still owned those shares I would say that bailing now would also save me some money.
Before u sold too quick, new companies take time...got to be patient...if u sold in early 2021 and made profit how did u lose money?
I made money in early 2021 playing with this then gave it back and then some during the Q3 2021 dilution bonanza. That is when I started to dig to see where that kind of dilution was coming from. It isn't easy unwrapping the history of this company. A good example is that you will not know that they closed two previous failed treatment centers unless you look at specific period filings because it isn't included in the history summary section of their filings. With this stock you better look at all of the filings.
Another issue I have with this company is the press releases and paid articles of the past which is extreme for even a stinky pink ticker. One of the worst by far is the Microcap daily article of November 2020. Clearly the author, James Elliot, was an uninformed idiot at best, or simply a financial magazine charlatan. Toxic lenders and companies employ these people when they need to raise capital from equity. This guy in November not only talks about the pending acquisition of the Evernia Facility but boasts about the 174 bed facility that was actually closed in January 2020 after hemorrhaging losses. Covid Clear was nothing more than a farce trying to cash in on the COVID hype in my opinion. This went so far as to feature some photoshopped vans in other promotions. The article boasts about Shawn Leon's 'impressive billionaire Leon family from Canada.' as if this gives the CEO some special business acumen. The author even boasts about Leonite's options to purchase up to 20% of Ethema Health at $0.10 a share. Below is a entry from the 2020 annual that shows what an option for $0.10 a share means other that a promotional line item.
All of this crap was repeatedly posted on boards like this by the loyal, or paid, promoters for this company.
MEDIA & TECHNOLOGYARIA treatment facility; Covid Clear; the Rise of Ethema Health Corp (OTCMKTS: GRST)
Published 3 years ago on November 2, 2020By James Elliot
https://microcapdaily.com/aria-treatment-facility-covid-clear-the-rise-of-ethema-health-corp-otcmkts-grst/
...Addiction Recovery Institute of America (ARIA), is Ethema Health’s 174-bed addiction treatment facility located in West Palm Beach, Florida...
...GRST is acquiring 25% of covid clear for $250,000.00 as per the original LOI which has been extended. Covid Clear has doubled its revenue every month in the last 4 months including revenue expected to exceed $100,000 for the month of August...
...Mr. Leon is related to the noble and impressive billionaire Leon family from Canada...
...The Company’s lender; Leonite has the option to buy 20% of the Outstanding Shares (OS) at .10 per share as Ethema Health Corporation...
For the fiscal year ended: December 31, 2020
https://www.otcmarkets.com/filing/html?id=14873406&guid=JIT-kWlTqNIqJth
18. Stockholder’s deficit (continued)
d) Warrants
The Company issued warrants to Leonite with an initial exercise price of $0.10 per share. The terms of these warrants included a price protection in the form of a reduction in the exercise price should the Company issue any stock at a price below the exercise price. The Company subsequently issued common stock at a price of $0.0000324 per share thereby triggering the price protection clause in the warrant agreement, resulting in an additional 152,017,272,726 warrants exercisable over shares of common stock.
So you did not even make small profit?
I have lost some on balance myself but not a lot when I bailed for the final time early in the 1 billion share dump during Q3 and Q4 2021. There are a LOT of traders currently holding this stock that have lost a LOT if the 10K statement of only 157 shareholders is correct in my opinion. There have been many hundreds of thousands lost here if not millions which is what I believe.
In the past shareholders would have absolutely no recourse. Fortunately now when a company isn't truthful in their filings and press releases there is hope. Even in this OTC trading space where the SEC gives companies wide latitude and many tools to separate traders from the hard earned money. Responsibility and accountability do not stop at the corporate level any more. They can be extended to those involved in nefarious conduct of the business which means that recovery efforts can now be extended.
CERTIFICATION PURSUANT TO RULE 13a-14 OR RULE
15d-14 OF THE SECURITIES EXCHANGE ACT OF 1934,
AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002
I, Shawn E. Leon, certify that:
I have reviewed this Quarterly Report on Form 10-Q of Ethema Health Corporation;
1. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
Some people are so down on this stock they must have lost a lot of money on this stock.
The ownership of the subsidiaries below would rise to 75%. Anyone want to debate the comment from the CEO that 'Evernia Health Center had nothing to do with the wrongful death case'? The name Evernia Health Center didn't get dropped until the day before the settlement date and Peace of Mind Counseling Services remained. The lawsuit was filed in February 2021 with a settlement date of June 1st 2023. Who paid the attorney fees for all this time and who is on the hook for the settlement. At what point did the note holders become aware of the lawsuits if at all? Select the image below to enlarge.
For the fiscal year ended: December 31, 2020
https://www.otcmarkets.com/filing/html?id=14873406&guid=GxT-kH4MwJw-B3h
5. Other investments
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 Evernia Health Services LLC. (“Evernia”), ...
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”),
Search as guest > copy and paste case number >
https://appsgp.mypalmbeachclerk.com/eCaseView/landingpage.aspx
Case Number: 50-2021-CA-002289-XXXX-MB
Case Style STRICKLIN, MARK V BEHAVIORAL HEALTH HOLDINGS INC
Filing Date 02/19/2021
Ethema Reports Updates and Extends Forbearance
June 08, 2023 13:50 ET
https://www.globenewswire.com/en/news-release/2023/06/08/2685133/0/en/Ethema-Reports-Updates-and-Extends-Forbearance.html
Mr. Shawn Leon, Company CEO, reported,...
...Evernia Health Center had nothing to do with the wrongful death case,...
Lawrence Hawking has revealed himself to be quite the clever character. When you search his name and his many health business enterprises using the Palm Beach county circuit court website you will be hard presses to find a period since 2009 where he wasn't involved in some sort of court related action.
It would appear that Lawrence (Larry) Hawkins operated a series of sober homes during the period leading up to 2019 when he ran into a series of problems. In May of 2019 the lawsuit against Peace of Mind Counseling Services was filed alleging that money was owed for violations of the many condo lease agreements that apparently included up keep. (Case Number 50-2019-CA-006523-XXXX-MB) That suit would result in a more than $1.3 million Judgement in July 2020.
Then in July 2019 came the death at the Evernia Station resulting in the recent mediated settlement against Peace of Mind Counseling Services.
So Lawrence Hawkins is running a series of these troubled sober home facilities and manages to find a partner in a publicly traded company who is equally desperate at the time in my opinion. At the beginning of 2019 we see the Evernia sober home facility registered as Evernia Health Center though it is referred to as a sober living facility in an article about the death in July 2019. By February 2020 Ethema Health signed a letter of intent is funding this operation by June 2020.
Hawkins manages to turn his situation around by unloading 75% of the two troubled subsidiaries Evernia Health Services, LLC and Peace of Mind Counseling Services on Ethema Health (GRST). He retains 25% who's value increases as Ethema shareholders fund the growth with their losses. He also has been earning $30K per quarter in management fees. It looks like Ethema Health (GRST) role in this treatment center is to assume the liabilities to the benefit of the real owners who are Lawrence Hawkins and the secured note holders.
Pam Beach Circuit Court Website
https://appsgp.mypalmbeachclerk.com/eCaseView/landingpage.aspx
For the quarterly period ended March 31, 2020
https://www.otcmarkets.com/filing/html?id=14411621&guid=oom-kaXVQJDWJth
On June 30, 2020, the Company entered into a loan agreement with Evernia...
... less ordinary business expenses and management fees paid to Ethema and Hawkins, which management fee is a maximum of $20,000 per month. The instalments commence on the earlier of; (i) December 31, 2020 and; (ii) the date that Evernia accumulates cash reserves of $200,000....
6/30? what do you expect end of June?
Let’s go
GRST!
Recent News
Making millions
Projecting this continues!
Restructuring debt y 6/30!
GRST $$$$$
My post #47235 pretty connects the relevant parties of Ethema Health (GRST) with Peace of Mind Counseling Services, Inc. I have located the letter of intent dated February 2020 for Ethema Health's acquired interest in the treatment center among a group of documents entered as evidence in another lawsuit with Q Global Trust LLC and Lawrence Hawkins as defendant. The Letter of Intent is pictured below and states that 'Ethema will acquire 51% interest in the equity of ATH... for the operation of its wholly owned subsidiaries Evernia Health Services, LLC a Florida limited liability company ("Evernia") and Peace of Mind Counseling Services, Inc a Florida corporation...
There are a number of documents in the 'Complaint' document that include emails. Michael Cabot, Behavioral Health Properties, the plaintiff is a Investment Sales Broker Specializing In Medical, Behavioral Health & Substance Abuse Real Estate. Apparently Lawrence Hawkins approached Mr. Cabot regarding the sale of his treatment business in early January 2020 according to the complaint. From this Ethema Health deal Behavioral Health Properties was due a commission and that is where the disagreement lies. The lawsuit is of no consequence to Ethema Health (GRST) in itself but did provide some nice information about the transactions and the timing.
Ethema Health closed its 150+ bed treatment center at 5400 East Avenue, West Palm Beach, Florida in January 2020 after hemorrhaging losses. Shawn Leon got introduced to Lawrence Hawkins by Michael Cabot, Behavioral Health Properties in early January 2020. Lawrence Hawkins and Peace of Mind Counseling Services, Inc had problems of their own during this period with a lawsuit for alleged payments due for costs associated with quite a number of leased properties. The trial for this matter was July 2nd 2020 and the plaintiff was awarded more than $1.3 million in damages against Peace of Mind Counseling Services, Inc.
So what kind of due diligence did Shawn Leon do for this deal and what did he know, when did he know it? Lawrence Hawkins approaches Michael Cabot, Behavioral Health Properties for a buyer for his very troubled business in early January 2020 and by February 7th 2020 Shawn Leon on behalf of Ethema Health (GRST) is signing a letter of intent? You won't find any of the nefarious details of these deals in a filing or press release that I am aware of.
Search as guest > copy and paste case number >
https://appsgp.mypalmbeachclerk.com/eCaseView/landingpage.aspx
Case Number: 50-2022-CA-003157-XXXX-MB
CASE STYLE: BEHAVIORAL HEALTH LLC V Q GLOBAL TRUST LLC
Filing Date: 04/05/2022
Search as guest > copy and paste case number >
https://appsgp.mypalmbeachclerk.com/eCaseView/landingpage.aspx
Case Number 50-2019-CA-006523-XXXX-MB
Case Style BOYNTON PARTNERS LLC V PEACE OF MIND COUNSELING SERVICES INC
Filing Date 05/17/2019
Wow, for a moment there I thought maybe I was just simply a basher and started to feel really bad about myself. Then I read on and realized that they didn't include those who share their factual due diligence complete with links to to the information quoted.
Stay tuned because later I will post the document that shows that Ethema Health purchased 75% of Peace of Mind Counseling Services, Inc. You know, the second defendant in the wrongful death lawsuit that was just settled?
Bubae
Saturday, June 17, 2023 3:17:45 AM
Post# 47235
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=172159386
The CEO entered a statement that was a big part of the last press release explaining that ' Evernia Health Center had nothing to do with the wrongful death case'. I had pointed out in a previous post that the Evernia Health Center had been dropped from the suit myself. Again what Shawn Leon didn't address was his association with the other plaintiff in the suit, Peace of Mind Counseling Services.
This was a mediated settlement to avoid jury trial which was indeed scheduled. The document dropping the treatment center from the suit was one day before the mediated settlement document. It would appear that part of the agreement was to separate the current treatment center entity from the liability associated with the case. This may be important since the Leonite note is 'secured by all of the assets of Ethema Health Corporation and Addiction Recovery Institute of America, LLC.' It would be difficult to negotiate that debt if this subsidiary was so encumbered.
So who is on the hook? We see an agreement line item in the Q1 2020 filing listing the names Behavioral Health Holdings, Inc. (“BHHI”), Lawrence B Hawkins, and Peace of Mind Counseling Services, Inc. Mentioned is Q Global Trust of which Lawrence (Larry) Hawkins are one and the same. Below you can find the 2023 annual filing for Peace of Mind Counseling Services, Inc with the names Behavioral Health Holdings, Inc. (“BHHI”), Lawrence B Hawkins, and Shawn Leon as CEO. So who assumes the liability of the wrongful death lawsuit and for how much? Isn't Evernia Health (GRST) the liable party by extension of the named entities?
Ethema Reports Updates and Extends Forbearance
June 08, 2023 13:50 ET
| Source: Ethema Health Corporation
https://www.globenewswire.com/news-release/2023/06/08/2685133/0/en/Ethema-Reports-Updates-and-Extends-Forbearance.html
...” Mr. Leon further added, “It came to my attention recently that misinformation about our Company was shared in an online forum accusing the company of being the subject of a wrongful death lawsuit and that the Company was accused of ‘patient brokering’...
...Evernia Health Center had nothing to do with the wrongful death case, and is not involved in any patient brokering.”...
For the quarterly period ended September 30, 2020
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=172092410
6. Other investments
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.
Search as guest > copy and paste case number >
https://appsgp.mypalmbeachclerk.com/eCaseView/landingpage.aspx
Wrongful Death Lawsuit
Case Number : 50-2021-CA-002289-XXXX-MB
02/19/2021 - STRICKLIN, MARK V BEHAVIORAL HEALTH HOLDINGS INC
Honestly, I assume that current CEO is fine. He however as a critical debt problem to solve and negociations with lenders and/or financing sources are never easy and unfortunately take time.
Of 2 things 1 ... Either Mr. Leon succeeds and achieves the objective he has
-negociating a win-win deal with lenders or
-get governmental funds out of a fund annouced earlier by the feds or
-folds and enjoy life somewhere else (then everyone including lenders loses)
Short of a failure scenario a successful way out does and keep taking time. Let's see where we stand 2 weeks from now.
GLTA
GRST -Time will tell....
GRST - Progress have been Made and Continue to be Made....
***https://markets.ft.com/data/equities/tearsheet/profile?s=GRST:PKC
***https://simplywall.st/stocks/us/healthcare/otc-grst/ethema-health
***Post it By declaes: Post # 46811 - Wednesday, May 03, 2023 1:58:03 PM***
***DO YOUR OWN DD***
https://capedge.com/filing/792935/0001903596-23-000263/GRST-10K-2022FY
https://capedge.com/filing/792935/0001903596-22-000804/GRST-10Q-2022Q3
https://capedge.com/filing/792935/0001903596-22-000529/GRST-10Q-2022Q2
https://capedge.com/filing/792935/0001903596-22-000301/GRST-10Q-2022Q
================================================
***Please Read Post #42737 & 42751 Interesting Reply from The CEO***
***GlobeNewswire***
Reports Updates and Extends Forbearance
Ethema Health Corporation
Thu, 8 June 2023 at 1:50 pm GMT-4
Ethema Posts Strong Year End Results
Ethema Health Corporation- April 4, 2023
.https://nz.finance.yahoo.com ›
***Drug Rehab West Palm Beach, FL | ARIAhttps://www.ariafl.com
***We will continue to focus on growth while improving our balance sheet***
***The Company growth is real and the elimination of variable rate debt is real***
GRST - https://fb.watch/bN-wNMFvWg/
https://t.co/5GwitXravc $GRST
Future will Tell The Story!
Well imo that is bullshit. And you probably know it.
But still, have a great weekend!
GO GRST
Regardless of current revs, it has never helped the PPS here. This lacks any real catalyst and will never result in more than a 2 tick flip just as it has been for years now. A new ceo would help.
No crystal ball, I just pay attention. They have been delaying and talking about all the points in their last press release for nearly a year now. The tone is different and maybe they will actually FINALLY achieve what they have been saying over and over and over... BUT, they have set dates, time tables, and boasted about record earning before and turned out to be false as well. Wow ... you must have a crystal ball ...
They are on their third forbearance extension to June 28th, They paid $70K to extend the property purchase agreement for 120 days to June 1st, They ran their cash down to $27K the end of Q1 and through subsequent event's they show no new borrowing 2 months into Q2, and it appears that they will be jockeying the balance sheet for Q2 for promotion, 'set new highs for profitability'. It is clear that they can not maintain the Ponzi scheme of receivables funding to make payments on receivables funding.
The question is will they waste promotion on shareholders or do a final share dump for debt before the split. There is history here for share dumps as low as an average price of .00006 a share. This came in the first 8 weeks of 2020 when they dumped 1.3 billion shares for debt conversions taking the price to .0001 where it remained for four months. As long as they can get volume at .0001 they can convert debt.
June 08, 2023 13:50 ET
The lender has agreed to extend the original forbearance agreement expiring June 8, 2023, until June 28, 2023 to agree to a plan for repayment of the Leonite debts and convertible loans.
These parties are also negotiating a global restructuring of outstanding securities that is expected to be announced shortly.
All of these initiatives are interdependent on each other, and it is expected that they will be resolved by June 30, 2023.
If revenue continues as projected, the second quarter will set new highs for profitability.
Mr. Shawn Leon, Company CEO, reported, “Our focus on growth and repayment of debt should yield some very substantial results in the second quarter.
For the quarterly period ended March 31, 2020
https://www.otcmarkets.com/filing/html?id=14411621&guid=rMT-kHadOt_Udth
Between January 15, 2020 and February 25, 2020, in terms of conversion notices received, Labrys Fund LP converted the aggregate principal sum of $8,936 and interest of $19,867 into 479,160,076 shares of common stock at an average conversion price of 0.00006 per share.
Between January 6, 2020 and February 27, 2020, the Company issued 1,316,679,078 shares of common stock in terms of conversion notices received from convertible note holders. The shares issued were issued below par based on the market price of the stock on the date of conversion and were valued at $531,005.
Between January 6, 2020 and February 13, 2020, the Company issued 103,000,000 shares of common stock to Leonite Investment in terms of the exercise of 125,609,759 warrants valued at $92,952 at an average exercise price of 0.00009 per share, based on the price protection afforded to the warrant holder.
'What are they really up to?'
At least you now ASK instead of letting believe you KNOW.
Only him knows but till he outline that he did fail or succeed in doing what he does, all we all can do is hope, considering he does report accurately every quarters that goes by.
'The company ... will be promoting soon'
Wow ... you must have a crystal ball ... Mr. Shawn Leon, reported, “repayment of debt should yield some very substantial results in Q2 ... initiative on purchasing the West Palm Beach real estate ... senior debt restructuring ... expected that they will be resolved by June 30, 2023.'
This was published more than 1 week ago and presumably reported on within 2 weeks.
The facts are that the company hasn't issued new shares for months, could sell 6,500,000,000 new shares (+ or - $3,000,000) then could (as per your continuous unfounded claim) R/S. Thereafter who knows ???
This scenario is as good as are your continuously negative analysis based on NON UP TO DATE informations.
One has to wonder why you put so much effort at destroying a stock you pretend not to have ... unless you are supporting your strategy of accumulating as much as you can ?
Well, no one said that naked short selling was a myth. Frankly, there hasn't been enough volume or volatility for a very long time here for there to be any interest shorting this stock in my opinion. That time will come for this one I believe IF shares can be found and one has the means. There is also quite a distinction between those who simply bash and those who provide valuable due diligence complete with quotes and links to the information.
The more likely scenario here is that of paid promotion. We have a company who's going concern status is in question with defaulted debt, a toxic lender that is deeply invested, a regulation "A" offering on the table, and a long history of OTC stock manipulation to support these activities by the collaborating parties.
...will sometimes hire stock “bashers”, people paid to post negative articles on blogs and message boards...
Not shorting
Naked shorting
Wow
Reality
Shorting
Illegally
This proves absolutely nothing. Find a broker that offers options for GRST and take a screenshot. Guarantee you won't find one because it doesn't exist.
Short selling exists and it is perfectly legal but you won't find it available as an option for stocks trading in the penny and sub penny range.
Evidence on SEC Website>https://www.sec.gov/comments/4-627/4627-95.pdf
Short sellers are essentially traders that are hoping a company will experience problems
(such as product delays or the inability to raise financing) so they may profit from the
setbacks. These traders or trading machines make the most if a company struggles and
goes out of business, and some short sellers actively work to make that happen.
Aggressive shorters, and short selling pools, will sometimes hire stock “bashers”, people
paid to post negative articles on blogs and message boards. Their goal is to put out
negative news on a company or its products in an effort to cause the company problems
and insure the stock declines so their negative bets pay off. Others will put up “flash
orders” advertising to sell a large number of shares in an effort to drive down the price.
Thus entrepreneurial companies not only need to fight the battles of developing new
products and markets, they have to stave off the short sellers in the meantime. This
growing culture of betting against a company for the sake of short-term trading profits
(regardless of economic consequences) has negative economic repercussions
NAKED SHORT SELLER are even MORE LETHEL.
SEC recently CHARGED TWO - JUST THIS MONTH.
Jun. 14, 2023 - Here is the full charging complaint of SEC vs Shabby Mgt & Hal D Mintz the charges and schemes outlined. Primes & how they did it all there.
https://www.sec.gov/litigation/complaints/2023/comp25746.pdf
Jun. 1, 2023 - Auctus Fund Management, LLC, Louis Posner, and Alfred Sollami
https://www.sec.gov/litigation/complaints/2023/comp25741.pdf
$GRST
Evidence please. Those considering a purchase here should be aware of what is going on with this company. If any shorting is at work here is is likely for good reason, but I for one would appreciate some evidence of such conjecture. I for one have no position or other current financial interest in this ticker. The time may come however once the volatility returns with the split and regulation "A" offering. ...And these NAKED SHORTS attack and TRY TO KILL many great companies like $GRST by NAKED SHORTING and then BEGGING shareholders to sell and BEGGING CEO to DO RS...
It is bad enough that the company was pushing this narrative of paying debt with cash flow last year only to find out that they not only weren't paying on the debt, but that they were actually borrowing more through very expensive short term notes. The July 2022 press release during this period claimed that they would come up with $1.5 million cash for the property deal. Of course it didn't happen but what they did was come up with a $400K deposit while their Leonite short term notes, net proceeds of $161K went on to accrue penalties, $24% interest, and monthly monitoring fees and is now worth roughly $410K.
According to the March 1st press release they will be paid up to another $70K to keep the deal alive for another 120 days from February 1st. So now we are past that date, another $70K, and they still let the two Leonite notes fester a what? Yes..., penalties, 24% interest and a monthly monitoring fee of $2000. Again, not good business. What are they really up to?
Ethema Extends Dates for Debt Repayment and Real Estate Closing
March 01, 2023 08:00 ET
https://www.globenewswire.com/en/news-release/2023/03/01/2618141/0/en/Ethema-Extends-Dates-for-Debt-Repayment-and-Real-Estate-Closing.html
The Company has also extended the closing on the purchase of the real estate at 950 Evernia Street for a period of 120 days from February 1, 2023 to June 1, 2023. Each successive thirty-day extension will cost the Company an increasing fee amount that would reach a total of $70,000.00 if all extensions are used.
Ethema Signs Contract to Purchase Property
July 26, 2022 13:05 ET
https://www.globenewswire.com/en/news-release/2022/07/26/2486269/0/en/Ethema-Signs-Contract-to-Purchase-Property.html
The agreement between the Company and the landlord/owner of the property is for a purchase price of $5,500,000 to be completed in February 2023. The landlord will provide financing of $4,000,000 as part of the purchase completion and the Company will need to pay the balance of the purchase price in cash on or before September 30, 2022.
Company Signs Purchase and Sale Agreement to Acquire Property and Ends Third Quarter Strong
October 05, 2022 13:07 ET
https://www.globenewswire.com/en/news-release/2022/10/05/2528993/0/en/Company-Signs-Purchase-and-Sale-Agreement-to-Acquire-Property-and-Ends-Third-Quarter-Strong.html
On October 3, 2022, Ethema signed a purchase and sale agreement (“Agreement”) to purchase the building and paid a $350,000.00 deposit as part of the Agreement, bringing the total deposit to $400,000 after getting credit for the $50,000.00 option payment. The Agreement has a closing date of January 31, 2023.
Now the blame for this mess is naked shorts?LOL. Desperation has set in.
I would say that is a fair assessment. The company claims that everything is just great and cash flow from operations will pay the debt. We see claims that debt will be paid from cash flow in press releases dated March 1st, June 30th, and October 5th 2022. During these same periods they borrowed through expensive short term notes and didn't pay on the debt. Just saying that they need to be called out on it.
Company Signs Purchase and Sale Agreement to Acquire Property and Ends Third Quarter Strong
October 05, 2022 13:07 ET
https://www.globenewswire.com/en/news-release/2022/10/05/2528993/0/en/Company-Signs-Purchase-and-Sale-Agreement-to-Acquire-Property-and-Ends-Third-Quarter-Strong.html
Mr. Shawn Leon, Company CEO, reported,...
...We continue to work on eliminating debt, especially convertible debt, and with stronger cash flow each month and the potential to raise new equity with a Regulation A offering at much higher prices than the current market, we believe we will be able to make significant strides on that front in the fourth quarter.”
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.
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.
Ethema Files 8K on Debt Restructure
July 22, 2022 15:09 ET
https://www.globenewswire.com/en/news-release/2022/07/22/2484639/0/en/Ethema-Files-8K-on-Debt-Restructure.html
This will enable the Company more time to generate cash flow for repayment of the debt. The Company’s ARIA subsidiary is steadily increasing cash flow and should generate enough to repay the note in full prior to maturity.”
Ethema Posts Strong Revenue Guidance for Second Quarter
June 30, 2022 12:07 ET
https://www.globenewswire.com/en/news-release/2022/06/30/2472430/0/en/Ethema-Posts-Strong-Revenue-Guidance-for-Second-Quarter.html
The Company is experiencing strong cash flow and expects to be able to begin debt repayments in the third quarter from cash flow.
....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...
...The balance outstanding on the note, including default penalty, interest accrued and monthly monitoring fees is $143,634 as of March 31, 2023....
15. Receivables funding
May 31, 2022 Funding
On May 31, 2022 the Company, through its 75% held subsidiary, Evernia Health Center, LLC entered into a Receivables Sale Agreement with Itria Ventures LLC (“Itria”), whereby $240,000 the Receivables of Evernia were sold to Itria, for gross proceeds of $200,000. The Company also incurred fees of $4,500, resulting in net proceeds of $195,500.
Ethema Continues to Reduce Debt
March 01, 2022 10:19 ET
https://www.globenewswire.com/en/news-release/2022/03/01/2394545/0/en/Ethema-Continues-to-Reduce-Debt.html
...We will use cash flow from operations, new fixed rate debt, and market rate equity to do our very best to make this happen in the first half of 2022....
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...
The balance outstanding on the note, including default penalty, interest accrued and monthly monitoring fees is $231,481 as of March 31, 2023.
on barchart went from sell to weak buy...
https://www.barchart.com/stocks/quotes/GRST/overview
https://otcbb.swingtradebot.com/equities/GRST:OTC
GRST - So, According to you......We are Being MISLEAD By Every One Except You!....
***HOW FORTUNATE WE ARE!!!.....However.....I Rather Trust Mr. Shawn Leon and Stand By The Statement Below:
***https://markets.ft.com/data/equities/tearsheet/profile?s=GRST:PKC
***https://simplywall.st/stocks/us/healthcare/otc-grst/ethema-health
***Post it By declaes: Post # 46811 - Wednesday, May 03, 2023 1:58:03 PM***
***DO YOUR OWN DD***
https://capedge.com/filing/792935/0001903596-23-000263/GRST-10K-2022FY
https://capedge.com/filing/792935/0001903596-22-000804/GRST-10Q-2022Q3
https://capedge.com/filing/792935/0001903596-22-000529/GRST-10Q-2022Q2
https://capedge.com/filing/792935/0001903596-22-000301/GRST-10Q-2022Q
================================================
***Please Read Post #42737 & 42751 Interesting Reply from The CEO***
***GlobeNewswire***
Ethema Posts Strong Year End Results
Ethema Health Corporation- April 4, 2023
Reports Updates and Extends Forbearance
Ethema Health Corporation
Thu, 8 June 2023 at 1:50 pm GMT-4
.https://nz.finance.yahoo.com ›
***Drug Rehab West Palm Beach, FL | ARIAhttps://www.ariafl.com
***We will continue to focus on growth while improving our balance sheet***
***The Company growth is real and the elimination of variable rate debt is real***
GRST - https://fb.watch/bN-wNMFvWg/
https://t.co/5GwitXravc $GRST
Future will Tell The Story!
Details on HOW they NAKED SHORTED. Nice read.
Jun. 14, 2023 - Here is the full charging complaint of SEC vs Shabby Mgt & Hal D Mintz the charges and schemes outlined. Primes & how they did it all there.
https://www.sec.gov/litigation/complaints/2023/comp25746.pdf
Jun. 1, 2023 - Auctus Fund Management, LLC, Louis Posner, and Alfred Sollami
https://www.sec.gov/litigation/complaints/2023/comp25741.pdf
And these NAKED SHORTS attack and TRY TO KILL many great companies like $GRST by NAKED SHORTING and then BEGGING shareholders to sell and BEGGING CEO to DO RS. INSTEAD here - shareholders are LONG and STRONG and CEO is growing the company to be TOP company in OTC. Already generating MILLIONS in REVENUE.
$GRST
Shawn Leon's words shortly after the Leonite $745K exchange note for the $596K Labrys debt, July 2022. "...steadily increasing cash flow and should generate enough to repay the note in full prior to maturity.” During this time he wasn't even paying on the two very short term early 2022 Leonite notes. The net proceeds of $161K for the 2 early 2022 note is now worth roughly $410K. That is not good business.
I can literally do this with almost any press release. Just pick one. I cringe when I see anything that starts with something like "I believe that Mr. Shawn Leon..."
GRST - I believe that Mr. Shawn Leon will Succeed in his Efforts to Become Profitable!.....
GRST - Peoples that keeps denigrating the CEO might makes them feel Superiors...... In reality Only Shows Lack of Civility Ignorance and Poor Education!.....Respect goes both ways!.....
This ticker reeks of a possible upcoming RS. Sooner or later leon will have no other options as with all incompetent ceo's. Watch and learn.
I agree with you on that...hes great ceo, he has what it takes to bring company to profits...I respect him because I will never be smart enough to be a ceo.
The company is at an inflection point which means that they will be promoting soon. Don't get excited because this company has a history dumping new shares while promoting these deals.
Note the comment 'restructuring of outstanding securities' in the last press release. Note also the comment in the last filing regarding the reclassification of the Series B preferred shares. Leonite is the only senior secured note holder in these conversations and the only holder of preferred securities of Ethema Health (GRST) from what I have read in the filings. The Series "A" preferred shares are held by the CEO's spouse.
We are looking at $400K in Series B preferred shares and $700K in Series A Redeemable Preferred shares in the Company’s subsidiary, Cranberry Cove Holdings. The Cranberry Cove Holdings entity holds the Canadian property. We know that the property isn't worth much more than the mortgage held against it and Leonit's claim from the price in the current tenant's purchase option in the lease agreement.
The point is that the $1.1 million in these securities represents defaulted debt that was parked in the 2020 debt restructuring deals. It looks like they have very big plans for that reg A offering. Much of this immediate debt will very likely end up being paid by retail trading losses. It will take some bold marketing by the company and aggressive manipulation by Leonite to get those shares sold in my opinion. Watch your wallets!
Ethema Reports Updates and Extends Forbearance
June 08, 2023
https://www.globenewswire.com/en/news-release/2023/06/08/2685133/0/en/Ethema-Reports-Updates-and-Extends-Forbearance.html
....is pleased to update shareholders on several initiatives that the Company has been working on most recently. The company is in negotiation with its senior lender on repayment of its debt and convertible notes. The lender has agreed to extend the original forbearance agreement expiring June 8, 2023, until June 28, 2023 to agree to a plan for repayment of the Leonite debts and convertible loans. These parties are also negotiating a global restructuring of outstanding securities that is expected to be announced shortly.
Ethema Completes Restructure and Gets Ready to Open New Treatment Facility
August 20, 2020 12:12 ET
https://www.globenewswire.com/en/news-release/2020/08/20/2081546/0/en/Ethema-Completes-Restructure-and-Gets-Ready-to-Open-New-Treatment-Facility.html
The Company has amended the terms of its debt with Leonite to convert over $1.4 million of defaulted debt into CDN$960,000 (approximately US$700,000) of 10% convertible preferred shares in its wholly owned subsidiary Cranberry Cove Holdings Ltd., and $400,000 in 6% convertible preferred shares in the Company.
For the quarterly period ended March 31, 2023
https://www.otcmarkets.com/filing/html?id=16673787&guid=DiT-knnQ9Hqkdth
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.
Leonite Capital LLC
On July 12, 2020, the company entered into a debt extinguishment agreement with Leonite whereby the following occurred:
...2. $700,000 of the note was converted into Series A Redeemable Preferred shares in the Company’s subsidiary, Cranberry Cove Holdings, accruing dividends at 10% per annum.
3. $400,000 of the note was converted into series B Preferred stock in the Company for a twelve-month period, mandatorily redeemable by the Company accruing dividends at 6% per annum payable in cash or stock, subject to certain conditions...
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