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Interesting post in May 2022.
janetcanada
Re: None
Tuesday, May 24, 2022 12:13:02 PM
Post# 42737 of 51142
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=168956778
Lets break down what you call Shawn Leon' "good money" Looks like the Leons needed to acquire more than 50% of Ethema Health for voting control because they need to make some moves here to protect what they call "friendly debt" held by themselves and these series "N" and now "R" note holders. So Shawn Leon takes the debt owed to him and Leon Developments by the company and writes himself a Regulation "D" offering for $1.5 million. Where did this debt owed to Shawn Leon come from? He is claiming the $420K is accrued management fees citing an agreement with Addiction Recovery of America (ARIA) which Shawn Leon took for himself in December 2022 for $0. In the 2023 deal to hand over Cranberry Cove, the holding company for the Canadian to Leonite for debt owed Shawn Leon was awarded "approximately $185,503" in so called accrued management fees. That is $605,503 in management fees. Yet what we see owed to Leon Developments jumped $242K from the end of 2022 to the end of Q2 2023. The balance of the debt owed to Leon Development comes from the sale of assets to Ethema Health by Leon Developments back in 2017.
The Leons use a couple of regulation "D" offerings to move the debt owed them to equity ownership priced at only $0.0005 a share giving them more than 52% ownership. That $0.0005 price exemption for these insiders was carved out in the Leonite warrant exchange agreement in 2023. I have many questions about this including the use of the regulation "D" offering for unregistered shares which is normally used to raise new capital. Questions about management fees which is income being converted full value to equity when there should have been tax consequences. The conversion of debt owed from the sale of the Canadian assets to Ethema Health which should have also had tax consequences at least in Canada. The awarding of management fees to Shawn Leon after years of filings stating that such fees were were "forfeited". Very sloppy, waiting to see if the Leons are going to compound the problems by acting on their majority ownership to the detriment of existing shareholders. Hey, this is only the cliff notes version, this whole deal is layered for a reason and sloppy in my opinion. Take a look at the title of Exhibit 10.02 of the July 2023 8K. It is titled " Management Agreement Completed July 10, 2024'" it is actually the regulation "D" securities purchase agreement.
https://www.otcmarkets.com/filing/html?id=17679613&guid=aoL-kKMwM2vCJth#ex10_2_htm
SECURITIES PURCHASE AGREEMENT
NOW THEREFORE, in consideration of the foregoing and of the agreements and covenants herein contained, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Company and the Buyer hereby agree as follows:
Bubae
Re: pual post# 51205
Sunday, September 08, 2024 10:28:13 AM
Post# 51209 of 51307
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=175050042&txt2find=series%2Bnotes
Re: janetcanada post# 50744
Wednesday, July 31, 2024 10:48:11 AM
Post# 50749 of 50826
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=174841515&txt2find=management%2Bfees
https://www.otcmarkets.com/filing/html?id=16878947&guid=aoL-kKMwM2vCJth
14. Related party transactions
Shawn E. Leon
As of June 30, 2023 and December 31, 2022, the Company had a payable to Shawn Leon of $365,126 and $411,611, respectively. Mr. Leon is a director and CEO of the Company. The balances payable are non-interest bearing and have no fixed repayment terms.
On December 30, 2022, the Company sold its wholly-owned subsidiaries, Greenestone Muskoka and ARIA, to Mr. Leon for gross proceeds of $0. The Company realized a gain on disposal of $628,567 which was recorded as an increase in Additional Paid in Capital due to the related party nature of the transaction.
Due to the current financial position of the Group, Mr. Leon forfeited the management fees due to him for the six months ended June 30, 2023 and the year ended December 31, 2022.
Leon Developments, Ltd.
Leon Developments is owned by Shawn Leon, the Company’s CEO and director. As of June 30, 2023 and December 31, 2022, the Company owed Leon Developments, Ltd., $1,092,701 and $850,607, respectively.
The Company paid Leon Developments a management fee of CDN$250,000 (approximately $185,503) and $0 for the six months ended June 30, 2023 and 2022, respectively.
On June 30, 2023, the Company assumed the liability owing to Leon developments of CDN$1,974,012 (approximately $1,490,946) from its subsidiary, CCH, immediately prior to the disposal of CCH to a related party, Leonite Capital LLC.
Shawn Leon is not gonna put his good money into a bad company, he's smarter than that!
👀*** NO SHAREHOLDER - NO EMPATHY - NO COMPASSION - ***RELENTLESS DEFAMATION!......
👀*** Is He Being Paid..... Or a PSYCHOPATH!???.....
👀***Insider Trading Screener - Add Symbol....
SecForm4.Com
https://www.secform4.com/insider-trading/1605331.htm
👀 *** MR. Shawn Leon did also buy shares at 0.079
*****LINK*****https://www.secform4.com/filings/792935/0001721868-18-000742.htm
👀***ARIA Rehab Facility***
https://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.
👀***Please Read Post #42737 & 42751 Interesting Reply from The CEO....
👀.https://nz.finance.yahoo.com ›
I found your comment about Shawn Leon being a current board member for Sparta Capital Ltd to be comical. I googled who the current board members are for this company and sure enough there it is, Shawn E. Leon: Independent Director. The problem is that Sparta Capital Ltd (SCAXF) is another stinky pink ticker that only trades on the expert market. 🙄Maybe you can list the eight companies that he headed up according to your post. That should be a hoot. 😆
Sparta Capital Corp. SCAXF
https://www.otcmarkets.com/stock/SCAXF/overview
https://finance.yahoo.com/quote/SCAXF/profile/
Have to quit listening to Shawn Leon, the year over year numbers tell the real story. The cash burn consequences from the crazy property purchase, sale, leaseback deal of August 2023 finally showed up in the Q1 and Q2 numbers to cover what was $2.3 million in mostly defaulted debt. The Evernia treatment center is fine, they have a separate lease agreement with Ethema Health. That is the business model, the debt and liabilities to get the treatment center up and running belong to Ethema Health shareholders. They keep the treatment center balance sheet clean in secure the new debt. If things go sideways these lenders will walk away with the treatment center operations used to secure the new debt.
More consequences to come with the crazy property, purchase, sale, leaseback deal of August 2023. That base payment increases 2.75% a year on the August anniversary date and the leaseback company covered themselves against inflation by tying the payment to the annual CPI. The expensive promotion for Q2 to sell the regulation "A" offering failed. Now Shawn Leon is trying to find a way to do another property purchase, sale, lease back deal to cover the new very short term debt he took on already for 2024. There is a $600K note that matures on November 15th with some nasty default terms to include ownership of 25% of ATHI direct shares, the holding company for the treatment center. Ethema just did a ridiculous deal in Q1 with Lawrence Hawkins for $1.1 million for his 25%. Yeah, they are still trying to buy the Evernia treatment center that they financed beginning in 2020. 🙄
August 4th 2023 Lease Agreement
https://www.otcmarkets.com/filing/html?id=16855888&guid=iEN-kF378EVAB3h#ex10_6_htm
For the quarterly period ended June 30, 2024
https://www.sec.gov/ix?doc=/Archives/edgar/data/0000792935/000190359624000535/grst_10q.htm
Page 29 and 30
For the six months ended June 30, 2024 and June 30, 2023.
Revenues
Revenues were $2,790,200 and $2,866,005 for the six months ended June 30, 2024 and 2023, respectively, a decrease of $75,805 or 2.6%...
Operating Expenses
Operating expenses were $3,296,785 and $2,758,833 for the six months ended June 30, 2024 and 2023, respectively, an increase of $537,952 or 19.5%. The increase is primarily due to the following:...
Operating (loss) income
The operating loss was $(506,585) and the operating income was $107,172 for the six months ended June 30, 2024 and 2023, respectively, an increase of $613,757 or 572.7%.
Page 32
Over the next twelve months we estimate that the company will require approximately $3.5 million for working capital and to repay existing short-term notes as the business continues to develop its rehab business in the US market. The Company has convertible notes, short term loans and promissory notes which will mature or have already matured during the current year and may have to raise equity or secure debt. There is no assurance that the Company will be successful with future financing ventures, and the inability to secure such financing may have a material adverse effect on the Company’s financial condition. In the opinion of management, the Company’s liquidity risk is assessed as high due to this uncertainty.
Nevermind, I got what u are saying now!
Hey Janet, thanks for your post, can u send me info, why u think or say that?
In the grand scheme of things the SP is way down on the list. The actual performance and success of the company will affect the SP. This is a small growing company that is moving forward.
Ethema Health was bankrupt and done in 2023 Paul. I was absolutely correct that the business was bankrupt. The Leons had to personally guarantee the the crazy property purchase, sale, leaseback deal of August 2023 to bail it out. They refinanced that $2.3 million in mostly defaulted debt into a lease liability of more than $9 million, more than $19 million over the 20 year term. Leonite held a note that refinanced defaulted debt the previous year secured by all assets of ATHI the holding company for the treatment centers and Ethema Health which finally forced their hand. Now Shawn Leon has so badly fumbled the regulation "A" offering and taken out a couple of more million in debt in 2024 that he claims to be trying another property purchase, sale, leaseback deal with the Edgewater properties. Think the Leons have enough on their personal ledger to underwrite another disaster? 😆
Now it would appear that these people are fools but I would like someone with the means to follow the cash. Millions of Ethema Health cash has went into the Evernia treatment center and now Shawn Leon is paying Lawrence Hawkins $1.1 million for the last 25%. No way should that be possible in my opinion given what Shawn Leon bought into in 2020 which was really nothing of a treatment center. Go to 9:00 in the January podcast linked below where Shawn Leon is talking about the Evernia treatment center purchase negotiated 51% ownership for zero dollars in return for financing to open the new facility. Compare the millions that went into Evernia to the $240K for the hard assets and a lease that they just took over the Boca treatment center for with roughly half the beds of Evernia. Now Ethema Health went from a slight cash flow positive position in 2023 when they weren't paying on that defaulted debt to one of a serious quarterly cash burn because now they must pay. OTC retail traders aren't bailing out the Leons and their so called "friendly debt holders" anymore.
Bubae
Member Level
Re: janetcanada post# 51157
Tuesday, September 03, 2024 6:18:11 AM
Post# 51159 of 51298
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=175023681&txt2find=guaranty
Bubae
Re: Welcome2Pinkyland post# 50921
Wednesday, August 14, 2024 9:16:24 AM
Post# 50922 of 51298
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=174917110&txt2find=lease%2Bback
Then sell your shares (if you have some) and go to the casino if you really believe the risk-reward is the same. GOOD LUCK ...
''A financial genius Shawn Leon is clearly NOT!''
I assume you believe you are (LOL), sitting behind your desk spending your life posting here in (LMHO)
Whatever Leon did or not in the past is relatively irrelevant.
He decided to re-activate a dead (or almost) business understanding the risk and\or opportunities it presented for himself to start with. I (as many) have nothing against or for him (I do not know him personally), I just see he works hard at making GRST profitable for himself and presumably for his shareholders.
In any case, according to your smart analysises, comments and repetitions, this company should have died at least a dozen times (conservatively) within the last 3 years. Since it has not, maybe, just maybe, you are not as smart as you want to believe you are and\or are blinded by your obvious motivation to attack Leon, God knows why.
Given time, you may finally see failure of the company and brag that you said it (50%) but you may also look even more stupid if Leon pulls out of his financial miseries (50%)..
Till then, you are just a big mouth continuously expressing your anger whatever the selected links you quote show ... or not.
Bottom line, you know as much as we all do and only can quote what Leon reported or said, picking and chosing the facts that fit your agenda.
I honestly don’t understand what our CEO is doing, no comm resulting in no volume. Every effort to boost the stock price is a failure.
Honestly loosing faith here.
And don’t give me that bs that he’s working hard behind the scenes, shareholders want to see action!
Janet, you are so right, it's a very good point!
Shawn Leon got schooled when he came to the U.S. and got mugged by Leonite and others. We are looking at $4,783,424 of so called "friendly debt" that doesn't include the money owed to the Leons and other lenders. That debt and cash from teh sale of the Canadian clinic is money lost in operations since 2017 just from these people. Now these insiders have plans according to Shawn Leon's podcasts to reposition themselves with moves to equity to exit from what I see. The problem is that the orchestrated promotion to convert debt using the offering never materialized. These insiders are stuck until they can convince retail traders to buy the debt. Otherwise the stock and the company is worth very little. The treatment centers are all leveraged by lenders and have good balance sheets thanks to the losses of Ethema Health (GRST) shareholders. So whoever ends up with the treatment centers will do well with all the liabilities and debt owned by Ethema Health shareholders. A financial genius Shawn Leon is clearly NOT!
Bubae
Re: None
Thursday, September 19, 2024 4:15:19 PM
Post# 51251 of 51290
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=175110973
Re: pual post# 51205
Sunday, September 08, 2024 10:28:13 AM
Post# 51209 of 51290
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=175050042&txt2find=series%2Bnotes
👀***GRST - In all "Honesty you see (50-50)" ....."In all Honesty and Logic".... I think that by taking into Consideration MR. Shawn Leon: " Background- Education- and Large Investment into the Company".... ***The Probability to Succeed are Better than to the ones that he will Fail!.....
👀 Shawn E. Leon is a Canadian Businessperson who has been the head of 8 Different Companies.
👀***Presently, he holds the position of President, Chief Executive Officer, CFO & Director at Ethema Health Corp. Mr. Leon is also on the board of Sparta Capital Ltd.
👀***In the past he was President of Leon Developments Ltd., President for Port Carling Inn Developments Ltd., President for Locks Developments Ltd., President at JLeon Developments Ltd., President at 1816191 Ontario Ltd., President of 1816191 Ontario Ltd. and President of Greenestone Clinic Muskoka Inc.
Shawn E. Leon Received an Undergraduate Degree from Wilfrid Laurier University.
👀***https://www.lflgroup.ca/English/home/default.aspx
=======================================================
👀 *** MR. Shawn Leon did also buy shares at 0.079
***LINK*****https://www.secform4.com/filings/792935/0001721868-18-000742.htm
👀***Insider Trading Screener - Enter C0. Symbol........
SecForm4.Com
https://www.secform4.com/insider-trading/1605331.htm
🍀*** ARIA *** https://www.ariafl.com/
👀***The Company growth is real and the elimination of variable rate debt is real.
👀***We will continue to focus on growth while improving our balance sheet.
👀***Please Read Post #42737 & 42751 - Interesting Reply from The CEO!
👀.https://nz.finance.yahoo.com ›
👀***Time will Tell The Story!.....
There is only one way to interpret a CEO's comments about stock consolidation, and SEC qualified regulation "A" offering. So the assumptions and link to data you provided is all you need to know to make a bet on a OTC ticker? That explains your underwater position in this for the last several years. I didn't see anything in there about the CEO's comments. I also do not see anything in there about the crushing debt. Nothing about the expensive short term note of $600K due November 15th. Nothing about the Bauman note with anti-dilution language that is currently eligible. And so on.
Shawn Leon's reg "A" offering has failed once again so he is working on another property leaseback deal to refinance. He has no choice at this point but to pursue some more expensive debt to cover. This has been a borrowing Ponzi scheme for years now and their luck may be running pout if they can't get the property leaseback deal as part of the Edgewater letter of intent. The other option is to go ahead and split the stock and burn it down with the subsequent dilution to get what funds they can.
Bubae
Re: None
Thursday, August 22, 2024 10:05:19 PM
Post# 51036 of 51288
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=174970951&txt2find=mirage
Re: None
Thursday, July 18, 2024 8:20:54 PM
Post# 50636 of 50903
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=174776225&txt2find=bauman%2Bconvert
OBJECTIVELY and RAPIDLY providing summary basic financial informations is something you, basher that you are, never do.
I at least have the honesty to inform OBJECTIVELY those wondering if they should bet or not on this stock.
The bottom line of what they have to know before betting ... or not:
1- GRST is a very very small OTC sub sub sub penny stock
2- The probability of the company to succeed is 50% base on what is known
3- The probability of the company to fail is 50% base on what is known
4- No one should bet on this high risk stock, money they cannot afford to lose without pain
5- You can RAPIDLY know about the company financial stat at: https://www.wsj.com/market-data/quotes/GRST/financials
If you need to know more than that before you play, don't bet.
I provide the links to the information Paul so those conducting their own due diligence can read for themselves. This is something you pumpers never do because you do not want those new to this board to see what is really going on. If the information is negative with respect to shareholders that is on Shawn Leon friend.
Link below to the last Markowski and Leon comedy show dated August 6th complete with the link to the podcast. Shawn Leon has been preaching stock consolidation and regulation "A" offering since January as if it good for current shareholders. That offering is dead because only a fool would buy into a split and subsequent offering dilution. Most companies do the split and then file the offering. Not Shawn Leon, he files the the offering, gets it qualified, then lets that serve as a lead weight for two years on the price. Would you care to debate or discuss any of this or do you all just want to complain that someone posted the words of the company on this board.
Re: None
Sunday, August 11, 2024 8:01:43 PM
Post# 50905 of 51286
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=174902490&txt2find=august%2Bpodcast
WOW! GRST is a gem in the OTC! Growing
Profiting
GROWING!!!
Yow!!
AIMO
That is your problem: ''You can't read or worse even interpret everything you read in light of your obvious negativity and anger toward Leon''.
We shall see.
I at least have the honesty to admit that, this could be a failure in the making (50%). I however believe that maybe, just maybe (50%) this may turn out to have been a good bet ...We shall see.
I read the same ''quotes and links you pick among many'' to support your THEORY but also consider some that suggest that Leon works hard at resurecting a company that was in a deep coma (to be kind) some years ago. I however have the honesty to say I do not know what Leon's plan is all about (if any) because he does not really says what it is or not.
"After being wrong for more than 3 years.. "
Talking about yourself I guess. FOOL