Ethema Health Corp (GRST)

[Magnum7419]

Concerns over increasing the A/S to Ten Billion is justified !!! but since I found the following statement in the last 10Q =

"On November 15, 2019, the Company entered into a non-binding letter of intent with an addiction treatment center based in Fort Lauderdale Florida, whereby the Company would invest up to $18,000,000 in the addiction treatment center for a 50% equity stake in the business. The initial investment of $12,000,000 for 40% of the equity is expected to take place in 3 equal tranches of $4,000,000 each and an additional optional investment of $6,000,000 for an additional 10% to be exercised within a year"

https://www.sec.gov/cgi-bin/viewer?action=view&cik=792935&accession_number=0001721868-19-000555&xbrl_type=v#


I WOULD SPECULATE THAT THEY HAD TO INCREASE THE A/S TO BE ABLE TO COVER THIS FUTURE ACQUISITION AS NO LENDER WOULD TOUCH EM UNDER THEIR CURRENT SHARE STRUCTURE imho