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You have lots of great points and very knowledgeable and I hope Leon reads the message board!
Good analysis, Paul, Grst is good bet because I beleive sooner or later, gov will help addiction centers with never growing addictions...
Anyone who has dealt with a company selling a regulation "A" offering knows to stay out of this. Ethema Health is such sad shape that they can't get the offering sold after a year and a half. The original offering was filed in October 2022 and the amended offerings since was qualified November 3rd 2023.
The SEC is widening its war on toxic funders
Published on August 24, 2021
https://www.linkedin.com/pulse/sec-widening-its-war-toxic-funders-steve-taylor/
...it also increasingly utilized qualified Reg A offerings to acquire free-trading stock which they then dumped into the market without disclosure....
...This was a significant concern, as Reg A shares are immediately free-trading. That makes it much more attractive to many investors compared to restricted securities sold under Reg D exemptions, but it also is definitely more attractive to those looking to make a quick buck by breaking the law. This case demonstrates the SEC may not have been looking hard enough at the Reg A market for fraud, as certain financiers and funders have been scalping stock without disclosure in the filings....
...Section 17(b) of the Securities Act of 1933 requires anyone that is paid to promote a stock must disclose the amount of the payment and who paid them. This is probably the most violated SEC regulation, which is not a surprise as it is also the least enforced. Toxic funders routinely pay promoters to pump the stocks in which they are funding. ...
...To make money on their toxic convertible loan, these funders require volume to dump into. Lots of volume, because they have a lot of stock to sell. Thus the need for lots of promoters, most of whom are non-disclosing as telling the public they are getting paid to pump, and who paid them to do it, would scare even the most die-hard penny plunger away....
They continue to borrow for 2024 to keep it going. Have to wonder where Shawn Leon was planning to get the cash to pay that four month note dated November 15th 2023. The maturity date was extended to April 15th 2024 and no mention of its disposition in the subsequent events section of the filing. Will he ever get that regulation "A" offering off the ground? They can't convert debt because their shares are practically worthless and they continue to burn cash. What to do 🤔
For the fiscal year ended: December 31, 2023
https://www.sec.gov/ix?doc=/Archives/edgar/data/0000792935/000190359624000279/grst_10k.htm
Page F-20
Mirage Realty, LLC
On November 15, 2023, the Company, entered into a senior secured promissory note in the aggregate principal amount of $250,000 for net proceeds of $223,500 after an original issue discount and fees of $26,500. The note earns interest at 10% per annum and originally matured on March 15, 2024. The maturity date was extended to April 15, 2024, with no change to the terms of the note or any additional consideration paid to the noteholder.
Shawn Leon has always kept a letter of intent for something going up until around July of last year. Link to press releases below going back to 2018 and not a single one was ever completed. They are good for the quarterly promo. The question for the moment is when is split to support the regulation "A" offering. Also, how is Ethema Health able to put up the all the treatment center (ATHI) assets to secure the new $1 million line of credit when the 75% ownership they claim is already leveraged for debt. The more than $4 million is series "N" notes have been in default since 2022.
https://www.globenewswire.com/en/search/organization/Ethema%2520Health%2520Corporation
Ethema Executes Two Real Estate Transactions and Major Debt Repayment
July 17, 2023 09:34 ET
https://www.globenewswire.com/en/news-release/2023/07/17/2705721/0/en/Ethema-Executes-Two-Real-Estate-Transactions-and-Major-Debt-Repayment.html
The previous announced LOI for the purchase of an acquisition in South Carolina was terminated due to an inability to extend it any further without a commitment of funds to close. Until such time as the Company has the resources and cash on hand to consummate such an acquisition, it will defer entering into any further LOI.
Non-binding Letter Of Intent (”LOI”) to acquire assets and assignment of lease and sub lease for Boca cove Detox Center
On March 22, 2024, the Company executed a LOI to acquire certain assets, including furniture, equipment inventory and supplies of Boca Cove Detox, LLC, along with the assignment of lease and sub-lease for premises located at 899 Meadow Avenue, Boca Raton, Florida.
https://bocacovedetox.com/
The purchase price is $240,000 with monthly repayment of $20,000 per month beginning on the Effective Date, defined below, of the agreement for a period of 12 months. The Company paid a non-refundable Exclusivity Deposit (“Exclusivity Deposit”) to the Seller, which deposit will be applied to the purchase price. In addition, upon the execution of the transaction documents, the Company will pay to the seller a Security Deposit (“Security Deposit”) of $83,393 which will be applied to the purchase price if the assignment of the lease is completed within 12 months of the effective date, if not completed within 11 months of the effective date, than $20,000 will be applied to the 12 installment of the purchase price, with the remaining balance of $63,393 remaining as the Security Deposit and applied to the last month of the sub-lease agreement.
The Effective Date is the earlier of the Company obtaining a license for the premises or 30 days from the signing of the LOI and the payment of the Exclusivity Deposit.
The Exclusivity period is to last as long as the parties are negotiating the terms of the transaction documents or 30 days from the date of execution of the LOI, which was executed on Match 25, 2024, whichever date is later.
===============================
Can't wait to see the filing. 😆 Should be a fun read. While you were talking to them did you ask why they can't get the regulation "A" offering off the ground after a year and a half. When is the split to support it?
Did you really take declaes's word for what they said after two and a half years of BS they have spewed on this board? Maybe you should have asked for the source for the information that they posted or given their history, dismissed it out of hand. 🙄
The last time they filed the 10K late was in 2020 and didn't release it until July 10th 2020. What happened that year was the closing of their second failed treatment center. They dumped 1.3 billion shares in the first eight weeks of 2020. Look what they said about the Canadian property in January 2020 while they were closing their only treatment center. That property was their best performing asset and they handed it over to Leonite for Debt in 2023. That was the second property that Leonite acquired for debt from Ethema Health. Has Shawn Leon's Ethema Health finally hit the end of the road?
Ethema Working on Acquisition Financing and Debt Reduction for 1st Quarter
January 16, 2020 15:31 ET
https://www.globenewswire.com/en/news-release/2020/01/16/1971711/0/en/Ethema-Working-on-Acquisition-Financing-and-Debt-Reduction-for-1st-Quarter.html
The termination of the operation in West Palm Beach will dramatically reduce the negative cash flow of the Company and allow it to focus on cleaning up the debt on the balance sheet as it works towards completing the acquisition. As part of these efforts to reduce debt, the Company is in talks with certain lenders and shareholders of the Company, around the possible sale of the Canadian subsidiary that owns the real estate of the Company’s former operations in Canada. This could help reduce the majority of the debt in one step.
For the fiscal year ended: December 31, 2019
https://www.sec.gov/Archives/edgar/data/792935/000172186820000304/f2sgrst10k070620.htm
Net loss
Net loss of $(14,962,841) and $(8,178,643) for the years ended December 31, 2019 and 2018, respectively, an increase of $6,784,198 or 83.0%, is primarily due to the increase in operating expenses in the current year, the loss on the sale of assets, the loss on debt conversions, the penalty on convertible notes and the deposit forfeited, offset by the increased credit on the derivative liability movement during the current year.
On December 20, 2019, the Company entered into an agreement to terminate the lease agreement on January 30, 2020. The deposit forfeited was $1,665,078 for the year ended December 31, 2019. The deposit forfeited represents deposits initially paid for the acquisition of the West Palm Beach treatment facility located at 5400, 5402 and 5410 East Avenue West Palm Beach. We were unable to consummate the purchase transaction and entered into a lease agreement with the landlord, the deposit initially paid was offset against outstanding rental. The excess was recorded as a forfeiture.
For the quarterly period ended March 31, 2020
https://www.sec.gov/Archives/edgar/data/792935/000172186820000426/f2sgrst10q092120.htm
12. Stockholders' deficit
a) Common shares
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.
I provide links for the quotes that I post and form opinions around. You are correct, in some countries you can go to jail for that. This one however is different though it is headed in that direction. Those who cannot debate the truth will certainly try to have it censored. Meanwhile my posts are for those who are conducting their own due diligence. You are not one off them and never was.
You should probably read a few of my posts to understand what Shawn Leon has in store if he ever gets around to it. 😆 I'll get back to you soon and we can discuss how much is left of your $3000 buy. I say this because I literally had an open order for 10M shares placed on Feb 6th 2024 and it finally filled today after week upon week of partial fills.
Looking forward to seeing all that Mr. Leon has in store for us in these next 12 months
Shawn Leon is delinquent in his filing now. First time that I know of. This trash may finally be headed for the bin. There must be some very bad news in the annual. Can't wait to see it. 😃
UH OH! Ethema Health is now pink limited - Delinquent SEC Reporting. This could go on for a while because there won't be good news in that filing. It is beginning to look like that regulation "A" offering will fail even with the split.
https://www.otcmarkets.com/stock/GRST/overview
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