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According to the 2022 10K there are less than 160 shareholders. Of that group I suspect many are so underwater that they don't care about what is left. Many likely averaged down and hold a lot of shares and are unable to unload with the lack of liquidity even under the best of circumstances. Most probably have bought in this range in the past year are believe that they are just a good press release away from cashing in. The problem is the general market liquidity which will not get better in my opinion and the fact that this ticker has already announced that they will be unloading a lot of shares for debt. Most traders want no part of a what a regulation "A" offering means. Many OTC traders LOATHE taking a loss and will average down big time to make themselves feel better about their position. Traders who get stuck deep practice motivated reasoning in their trading decisions which is based on emotions rather than technical data.
Yes cause a 750,000 market cap is very normal for a profit making company with 8,000,000 revenues in the next 12 months like GRST
LOL
I'm surprised GRST is not yet trading at $0.02 that would be a 75mil mc, which would be very normal with a 25 PE and the growth potential.
But hey, the market is always right.
Honestly, I am surprised GRST is not at .0002 yet.
Aside from the fact that the secured debt holders are picking the assets apart right now, new buyers need to be aware that the company intends to dilute heavily in the near future. Now I say in the near future but this company moves at a glacial speed on EVERYTHING!! The original regulation "A" was filed October 14th 2022, qualified on November 21st 2022 and filed the third amendment on April 10th of this year. Meanwhile Leonite rapidly books those paper profits from the default interest and fees on their notes. A company can only behave recklessly with their debt if they can eventually unload it on those buying the new shares. It is yet to be seen if this company can sell those new shares for the accumulated debt from the previous 2 failed treatment centers.
Ethema Posts Strong 3rd Quarter Results and SEC Qualifies the Regulation A Form 1A Filing
November 29, 2022 08:00 ET | Source: Ethema Health Corporation
globenewswire.com/en/news-r...
Mr. Shawn Leon, Company CEO, reported, ...
...We have repeatedly indicated throughout the year that our dual goals were to grow the company and to manage and repay the debt we accumulated in previous years. In the next few months, we expect to make substantial progress on these goals with the new equity raise outlined in the filed form 1A....
Shawn Leon is no different than any other stinky pink CEO with a debt problem and shares that he can not sell. He will tell shareholders exactly what they want to hear in the moment and always has.
After not paying on any of the LABRYS fund notes as described in the March 1st 2022 press release he went on to exchange the note for an even more expensive Leonite June note that is secured by all of the assets of the company. Then he has the audacity to say in July 2022 that they will pay the Leonite note before maturity from cash flow. Some here knew even at the time that the statement was BS.
Not only has he not made any payments on the June 2022 note but also failed to pay anything on the very short term and expensive Leonite notes from early 2022. All of those notes are now valued more twice the original principle with 24% default interest and fees. they had no intention of paying on any of the recent Leonite debt in my opinion and is why Leonite is likely exercising their right under the elusive "Security and pledge agreement". Honest and transparent this CEO is not and we can parse every press release in the last several years to illustrate the point.
Because they aren’t helping shareholders by being a pos and being ran by a ceo that obviously doesn’t know how to do anything going by the declining shareholder value. #LeonResign!
GRST - From OTCShotCaller- This old post made me realize Mr. Shawn Leon Empathy and Dedication......What an Admirable Person he Is!!!.....
***When we are sick it is not the Stocks Market that cure us but this Altruistic Humanitarian Peoples!!!.....
***By OTCShotCaller- Friday, April 30, 2021 11:21:20 PM - Post# 29589- As a Reminder.....
EXCELLENT PERSPECTIVE!!!
Thank you for that!
I totally and completely concur with everything you stated!
Like you I'm 100% confident investing in this company with no hesitation whatsoever, for reason like many of us here did a thorough DD on everything possible, i.e. the CEO, who he is, his business background, vast accomplishments, family background in BIG BUSINESS, and very importantly his great business plan and the sector this is in, it just doesn't get any better!
As a physician I can tell you from first hand experience dealing with patients with severe addictions that it is a living HELL for them and their family. Some of them require institutionalization under close medical supervision, typically associated with brain damage from their use of drugs & alcohol, resulting in serious pathology like organic brain syndrome, kidney failure, on and on, and it can get much much worse beyond belief!!
These are a host of accompanying clinical complications that can be associated with various addictions-substance abuses matters and I will share a first hand experience of that with everyone here, someone I knew some years ago that literally lost her mind over a hard core long standing addiction that eventually cost her, her life!
If you (or anyone here) remembers the recording artist Vanity (now deceased), she was Prince's long time girlfriend back in the 80s who I know personally. She did A LOT of COKE and hung out with a famous rock star who's name I probably shouldn't mention. Did a lot of drugs, she became severely hooked on cocaine & meth, free basing, she essentially "lost her mind", couldn't complete sentences, severe thought disruption, went off tangents, all kinds of bizarre tics sudden outbursts of screaming, yelling, cussing, throwing objects at people, driving under the influence nearly killed some people crossing the street in Los Angeles who had to run for their lives jumping over cars to get out of her way, etc. She became a living monster and at one point in her addiction she looked like a witch! These are no exaggerations!!
The result of her severe addiction is she lost not only her mind, but BOTH her kidneys due to the years of cocaine and various narcotic abuses, wound up dialysis dependent for the reminder of her life and DIED with no kidneys. Surgeons had to removed them because they were so badly damaged and necrotic from the effects of years of cocaine.
I took the time to describe this because it is the kind of things that can result from addictions, some obviously are much worse than other. In Vanity's case, she never got into addiction treatment, and there's a way to do that via people who are addiction specialists, who get a physician to declare the person a danger to themself & society via the courts.
I have seen addictions so terrible and severe in various hospital settings it looked like the person wasn't even human, like something out of a science fiction movie.
So again, I'm mentioning these things to give everyone here a broad picture what addiction can look and how extremely severe it can be, and the GREAT NEED for Addiction Centers that double as in house resident facilities which is GRST's model and it's a great one, it's the ONLY kind proven to WORK, highly effective and successful where relapse rates are very low almost non existent, compared to the common ambulatory treatment model.
So for me, it was an EASY decision to invest substantially in this company, because: 1). I recognize the great need for it; 2). it can and does give addicted individuals a new lease on life, a chance to escape a living hell; and 3). I believe strongly in investing in healthcare related stocks which is my primary interest.
With GRST we are the ones supporting the growth and success of this company in tandem with Shawn and his team of medical professionals so the way I see it, I'm in this for the long haul and not worried one bit about the daily pps movement, etc.
This is a GREAT COMPANY founded on GREAT PRINCIPALS with a GREAT CEO BUSINESS PROFESSIONAL, so anything I (we) can do to support this is directly contributing the the literal survival of thousands and ultimately millions of people who will get into treatment with Ethema Health.
I'm vested in the Multi-Million share range and intend to add to that position as often as possible. I will consistently do this without hesitation as I know it will help the company grow.
Not at all worried about pulling money off the table, only investing strongly in this much needed awesome opportunity to literally save people's lives, that's the way I look at it because I have seen it up close and it's not pretty to say the least.
I would like to take the time to thank Cy, you, and many others here for bringing me up to speed in this play and sharing all your great insights. We are a team and will see this company through to untold success and just think, we are here from "the beginning" and have a story to tell many!
I will be emailing Shawn this weekend to touch based with him again about the current Float position of this company, as the information listed on the OTC Market's Board is not current. It would be good for us ALL to know what the current Float is, which IMO is extremely important to know.
Let's stay in touch and enjoy the ride to vast fortunes and helping people to survive in this world.
Best wishes...
Be well and prosper...
Why anyone would shit on a company that helps people with addiction is beyond me…
You’re right about .01 (minimum) we will see that again soon
Millions in revs and expanding
What aspect of this company can claim to be profitable? It isn't Ethema Health GRST. The real investors of ATHI which holds the treatment center are the winners of this game where Ethema Health (GRST) shareholders ensure that the real investors make money. No one wants the shares of $GRST anymore including the toxic lender Leonite. Who will own the treatment center by the end of Q2? Where is that "Security and Pledge Agreement" that was supposed to be attached to the June note Leonite 8K would tell us what is going on?
For the quarterly period ended June 30, 2022
https://sec.report/Document/0001903596-22-000529/
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://sec.report/Document/0001903596-22-000464/
...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"..
Bag-of-gold-holders
Blah, Blah, Blah. Laughing bag holders tend to ride the sinking ship all the way down and never admit they were wrong. The market has spoken.
Hahaha you are so funny...
A lot news still to come, but GRST doesn't need P&D news anymore... no diluting for over 13 months! No need to pump! Seems the CEO is very confident of the Q to Q growth GRST shows...
This has become a growth company with great revenues and already profitable...
The market will soon follow the numbers... the NUMBERS that are SOOOO important and the only thing that counts... as some have been saying here for over 2 years. I guess that also counts now the numbers show a profitable company. LOL...
$0.01 tick tock...
Great job rich boy. You have created zero value for your SH. This will not recover as there is no longer any type of catalyst to look forward to. When bag holders start unloading their shares, look for this to settle at .0001-.0002.
Let’s see if we get some 3s for a double up. Share count remains similar
What is not to love about a company that has a regulation "A" offering in the the offing priced at 3 times current market who's shares can immediately be dumped into the market. What is worse than the reverse split to make it viable is that the dilution will be massive post split as they convert the offering for debt which is the stated primary purpose. The qualified buyers of this offering will hold the common shares for about as long as a toxic lender which is just enough time for the digital ink to dry. A company who is liquidating assets for debt with shares that are unsellable in its current state should attract short selling like bees to honey if they have the means. This will be fun to watch before long.
The last press release didn't mention either the past due Leonite debt secured by all of the remaining assets of the company or any mention of the regulation "A" offering. Then they dropped yet another amended offering notice on April 10th. Stay tuned because the share carnage drama with be entertaining.
Amended regulation "A" offering
https://www.otcmarkets.com/filing/html?id=16555511&guid=S3m-kFQ01_kFh3h
Ethema Posts Strong 3rd Quarter Results and SEC Qualifies the Regulation A Form 1A Filing
November 29, 2022 08:00 ET | Source: Ethema Health Corporation
https://www.globenewswire.com/en/news-release/2022/11/29/2563968/0/en/Ethema-Posts-Strong-3rd-Quarter-Results-and-SEC-Qualifies-the-Regulation-A-Form-1A-Filing.html
Mr. Shawn Leon, Company CEO, reported...
We have repeatedly indicated throughout the year that our dual goals were to grow the company and to manage and repay the debt we accumulated in previous years. In the next few months, we expect to make substantial progress on these goals with the new equity raise outlined in the filed form 1A.
Where do you think you're buying shares from?
And imagine calling someone an idiot then relying on ihub buy/sell data
lmao it's best for idiots to just stfu
Hey genius someone would have sold those .0005s too.
that counts as a sell. you were on the bid and someone sold to you. a buy would be if you bought at 0005
Something is off here. I bought 454910 shares at 0,0004 but it comes under the sell tab so sell volume could be wrong
every time i get a volume spike alert it's another person dumping all their shares lol. keep up the good work shawn!
That's not the case here. If it were, they wouldn't be divesting, they wouldn't be drowing in debt, they wouldn't be doing a reg A.
The only investors who have profited with the "diluting with value" are the secured debt holders of the two entities that have share structures of their own. You haven't seen any dilution of the shares of the so called subsidiaries. Fund raising is what the shares #GRST is for. Who did the dilution in 2021 that got the price down below .0001 benefit? Right at 1 billion new shares dumped in Q3 and Q4 2021 and close to 600 million shares dumped in Q1 and Q2 at much higher prices.
You do know there is diluting with value and diluting without value. I
Mr Leon can dilute as much as he wants as long as he makes more money than the money he dilutes.
And that's not so hard with a profit making company like $GRST
Have a great night.
You do know that a Reg A is dilution, right?
This the third amended filing regarding the regulation "A" offering and likely not the last. It is rare that Ethema Helath's press releases accurately depict what is actually happening or what is going to happen but the statement regarding the past debt and the offering will become reality eventually once they get the assets exchange for secured debt worked out.
Ethema Posts Strong 3rd Quarter Results and SEC Qualifies the Regulation A Form 1A Filing
November 29, 2022 08:00 ET | Source: Ethema Health Corporation
https://www.globenewswire.com/en/news-release/2022/11/29/2563968/0/en/Ethema-Posts-Strong-3rd-Quarter-Results-and-SEC-Qualifies-the-Regulation-A-Form-1A-Filing.html
We have repeatedly indicated throughout the year that our dual goals were to grow the company and to manage and repay the debt we accumulated in previous years. In the next few months, we expect to make substantial progress on these goals with the new equity raise outlined in the filed form 1A.
I own the stock, it would be stupid to make problems where that is none and you should not either because you are shareholder.
LMFAO
So after: "GRST is going to dilute billions of shares" 2022
- but didn't dilute a single share in over a year
It became: "GRST is going to do a RS" 2022-2023
- but GRST is not planning a RS
So it became: "GRST is probably going for a chapter 11 BK" 2023
- but GRST is not going BK at all
So... We are back at: "GRST is going to do some heavy diluting" 2023
LIE AND REPEAT!
LOL!!!
One thing that is a fact without exception. Regulation "A" offerings always mean heavy dilution. With or without a reverse split.
Thanks for your opinion, Bubae, in my opinion, I think we will soon big breakout.
It really doesn't tell the whole story. The story is that Ethema Health (GRST) common shares are not to be considered an "investment" in my opinion. Rather, they are simply a means to ensure growth and profitability for those who hold the shares of the so called subsidiaries. It looks as if the current treatment center may act as a proof of concept to attract the next group of real investors for the proposed acquisition after unwinding their small "actual" ownership of the Evernia treatment center.
It looks to me like the architect of this start-up and current manager of this business model is Lawrence Hawkins who also retains 25% ownership of the Evernia treatment center. The business appears to be entirely funded through Ethema Health (GRST) with the shares of the holding company American Treatment Holdings Inc. (ATHI) primarily owned by Hawkins and the options holders for secured start-up debt. The remaining ownership of the ATHI that can be claimed by GRST is now pledged against the Leonite June 2021 note that we know will not be paid as told in previous press releases.
Behavioral Health Holdings, Inc (BHHI) owned by Lawrence Hawkins was listed as inactive in January 2019. American Treatment Holdings Inc. (ATHI) is listed as incorporated in January 2019. In August 2019 he filed for a name change from Behavioral Health Holdings, Inc (BHHI) to American Treatment Holdings Inc. (ATHI). Yet in the Q2 2020 filing for Ethema Health (GRST) we see two deals. One with BHHI and one with ATHI with the same June 30, 2020 date and the same percentage (51%) of acquisition. BHHI ceased to operate by September 2020 per a Admin Dissolution For Annual Report notice in the link below.
Lawrence Hawkins is the current manager of the Evernia treatment center and earns $30,000 a quarter per the management fee line item in the filings. Q Global Trust listed as the seller in the filings is Lawrence Hawkins one and the same. By January 2020 when Ethema Health (GRST) closed its second treatment center they were deep in debt with few optins. What they needed most from the current treatment center was a story and business structure from which to convert debt for equity. I look for a similar deal after liquidating assets for debt where the business is largely held by real investors funded by share sales of GRST.
https://bisprofiles.com/fl/behavioral-health-holdings-p19000008251
BEHAVIORAL HEALTH HOLDINGS, INC. is an Inactive company incorporated on January 23, 2019 ...
Officers and Directors - Lawrence Hawkins
Events
September 25, 2020 ADMIN DISSOLUTION FOR ANNUAL REPORT
https://opencorporates.com/companies/us_fl/L19000024560
Incorporation Date - 23 January 2019 (about 4 years ago)
EVERNIA HEALTH CENTER, LLC
Agent Name - AMERICAN TREATMENT HOLDINGS INC
Agent Address - 950 EVERNIA STREET, WEST PALM BEACH, FL 33401
Directors / Officers - Lawrence Hawkins
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
Larry Hawkins - AKA Lawrence Hawkins
https://www.linkedin.com/in/lawrencebhawkins/
About
CEO / PRESIDENT / PHD / MBA / EFFICIENCY EXPERT / FINANCIAL SPECIALIST
Strategy | Revenue & Profit Growth | Emerging Ventures | Mergers and Acquisitions | Change Management
Strategic, results oriented executive with 12 years of C-level experience in diversified industries and a track record of creating increased profitability, reducing costs while delivering significant growth for small and large companies facing difficult economic, competitive, and financial challenges.
For the quarterly period ended June 30, 2020
https://www.otcmarkets.com/filing/html?id=14447979&guid=oom-kaXVQJDWJth
4. Prepaid expenses and other current assets
Prepaid expenses and other current assets includes the following
The company invested funds in Evernia Health Services, LLC (“Evernia”), a newly formed entity which is 100% owned by American Treatment Holdings, Inc. (“ATHI”), a newly formed entity to hold the investment in Evernia.
6. 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”), which operates drug rehabilitation facilities.
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.
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....
Great article, it tells the whole story!
I think Mr.Leon addiction centers is changing lives and giving hope to many and if shareholders are patient it will change ours.
I wouldn't call it a scam but it is clear that Leonite already holds a nice claim for secured debt against the treatment center shares even before the June 2021 note that is secured by the remaining assets of Ethema Heath (GRST). They have been boasting about 75% ownership and press releases about the growth but the fact is that shareholders of Erthema Health (GRST) really own very little other than the debt from the previous 2 treatment center failures. Yet they have been financing the real shareholders of the treatment center for the the last 3 years with trading losses from this scheme.
2020 Debt restructuring 8K
https://www.otcmarkets.com/filing/html?id=14554778&guid=oom-kaXVQJDWJth
Pertinent section of debt restructuring dated December 2020
https://www.otcmarkets.com/filing/html?id=14554778&guid=oom-kaXVQJDWJth#F2SGRST8K112920EX10_23_HTM
This STOCK OPTION AGREEMENT (the “Agreement”) is made as of July 10, 2020 by and between ETHEMA HEALTH CORPORATION, a Colorado corporation (“Ethema” or “Transferor”), and LEONOITE CAPITAL LLC, a Delaware Limited Liability Company (“Leonite” or the “Transferee”). The Transferor and the Transferee are referred to herein each as a “Party” and collectively, the “Parties.”
Recital
C. WHEREAS, pursuant to a series of Notes and related Securities Purchase Agreements each dated on or after July 12, 2020 (collectively, the “Notes”), Ethema agreed that after it acquires the shares of ATHI, it would sell to Transferee, an amount of shares equal to 20% the total outstanding shares of ATHI (the “Transferred Shares”), with the Transferee receiving a percentage of the Transferred Shares equal to the percentage of the total amount actually advanced by Transferee under the Notes. The 20% share will be based on a total of $400,000 in total advanced under that Notes.
Agreement
1. The Parties hereby agree and acknowledges that Transferee has advanced under the Note the sum of $200,000.00 and that the total amount advanced by Transferee and Other Transferees collectively under the Note shall not exceed $400,000.00.
Pertinent section of debt restructuring dated December 2020
https://www.otcmarkets.com/filing/html?id=14554778&guid=oom-kaXVQJDWJth#F2SGRST8K112920EX10_23_HTM
This STOCK OPTION AGREEMENT (the “Agreement”) is made as of October 29, 2020 by and between ETHEMA HEALTH CORPORATION, a Colorado corporation (“Ethema” or “Transferor”), and LEONOITE CAPITAL LLC, a Delaware Limited Liability Company (“Leonite” or the “Transferee”). The Transferor and the Transferee are referred to herein each as a “Party” and collectively, the “Parties.”
Recital
D. WHEREAS, pursuant to a series of Notes and related Securities Purchase Agreements each dated on or after July 12, 2020 (collectively, the “Notes”), Ethema agreed that after it acquires the shares of ATHI, it would sell to Transferee, an amount of shares equal to 30% the total outstanding shares of ATHI (the “Transferred Shares”), with the Transferee receiving a percentage of the Transferred Shares equal to the percentage of the total amount actually advanced by Transferee under the Notes. The 20% share will be based on a total of $600,000 in total advanced under that Notes.
Agreement
1. The Parties hereby agree and acknowledges that Transferee has advanced under the Note the sum of $300,000.00 and that the total amount advanced by Transferee and Other Transferees collectively under the Note shall not exceed $600,000.00.
For the fiscal year ended: December 31, 2020
https://www.otcmarkets.com/filing/html?id=14873406&guid=oom-kaXVQJDWJth
23. Subsequent events
Subsequent to year end, Leonite has advanced the Company an additional $290,000 to the Company for working capital purposes, the option to acquire shares in ATHI from the Company has increased from 4,000,000 to 6,666,667 shares.
GRST - It is Clear that you choose to ignore Mr. Shawn Leon Empathy & Good Will to help peoples that need help to regain a Normal life!.....
You only find Dooms and Gloom that maybe it is just due that you do not understand what he is doing .......
*** I cannot imagine that a member of one of the richest Family in Canada
with a Good Reputation....... will break with the Family Value and perpetrate a fraudulent business scheme like some here would like us to believe???......
***With so many Store that Leon's Family has in Canada what is the Need to do a scam in the USA???....
***Leon's
https://www.leons.ca › pages › about-leons
***The Company quickly established its reputation for being honest, honorable and caring with special attention paid to standing behind the goods sold.
***https://www.lflgroup.ca/English/home/default.aspx
Major company holdings: Leon’s Furniture
Location: Toronto
Net Worth:
$1.1 billion
Leon family
*** Ethema Health's CEO related to MULTI BILLION DOLLAR LEON business family of Canada.
*****LINK*****
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=158769800
*** 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 see Post #42737 & 42751 Interesting Reply from The CEO!
.https://nz.finance.yahoo.com ›
GRST - https://fb.watch/bN-wNMFvWg/
They are probably working on another start-up structured about the same as the current 3 year old story. That is by structuring the new business under a separate share structure largely held by the real investors of the business. The purpose of Ethema (GRST) shareholders is to fund the seed money and growth of the company which creates value and security for the real investors. What Ethema Health (GRST) needed badly back in 2020 was a new narrative from which to sell shares after closing their second unsuccessful treatment center LOADED with debt.
The current treatment center is largely held by note holders in the form of options in direct ownership of ATHI. American Treatment Holdings, Inc (ATHI) is the entity that holds the treatment center. 75% of the business is claimed by Ethema while the 25% balance is held by those who structured the start-up under the ATHI corporate entity. Those real owners are likely sorting out how they are to be repaid between the remaining assets and the regulation "A" offering to come.
For the fiscal year ended: December 31, 2020
https://www.otcmarkets.com/filing/html?id=14873406&guid=aMA-kpLZGSIzB3h
Since June 30, 2020, the Company has been actively involved in the operation of the treatment center operated by Evernia Health Center LLC (“Evernia”) at 950 Evernia Street, West Palm Beach Florida. The Company is under contract to purchase a majority interest in this company and has been financing the start up operations of this facility. This operation will be the Company’s only treatment center operating and expects the purchase of the majority interest to close in the second quarter of 2021.
The Company intends to continue its operations at a new location in west Palm Beach. A Letter of Intent ("LOI") was signed on February 7, 2020, with a third party that has a property lease and a pending license at its new location. The Company originally anticipated recommencing operations in February 2020, however it has been adversely affected by the COVID-19 pandemic. The LOI requires the Company to provide a working capital loan of up to $500,000, to date the Company has loaned $690,449 as of December 31, 2020. The Company is expected to close on the acquisition shortly.
For the fiscal year ended: December 31, 2022
https://www.otcmarkets.com/filing/html?id=16535244&guid=Bcm-kpnke41jJth
2. 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.
Nothing expanding here, to the contrary. if we had access to the the "Security and Pledge Agreement" that was supposed to be attached as exhibit "C" of the Leonite June note 8K, we would know what is going on right now. The 3 ugly notes alone pretty much solidifies Leonites secured debt claims.
For the fiscal year ended: December 31, 2022
https://www.otcmarkets.com/filing/html?id=16535244&guid=QXm-kWGmkEC6Jth
12. 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 $212,579 as of December 31, 2022.
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 $127,702 as of December 31, 2022.
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"...
Got to be patient when this stock move gonna be explosion...no reason to fail.
Zero reasons to sell…
GRST lacks any real catalyst. Zero reasons to buy Go leon go!
$240 worth of trades for the entire day. Go leon go!
GRST - <<Nothing is IMPOSSIBLE>>!
***Is this Message being Addressed to some "Clueless Peoples" that Refuse to Understand what Mr. Shawn Leon is doing ???.....
Best of Luck
janet
GRST- Link to the trades..... Non Stop Manipulation!.....
https://ih.advfn.com/stock-market/USOTC/demand-brands-pk-GRST/trades
***True and loyal shareholders provide good support to help the company grow
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