Ethema Health Corp (GRST)

[uptick1000]

PPS Alert


I think some are exactly right here when they say in their messages that they believe Grst will move considerably higher.

Grst will be become current shortly, there will be some 8ks released and there will be news about the acquisition of Covid Clear. These are all factors that we know will shortly transpire.

We know that Covid Clear is a done deal or else why is covid clear’s business address the one and the same as Grst new addiction treatment Center.

Like one poster said this is the first time down here on the OTC that we are witnessing this type of growth in a treatment Center. Meaning the trader thinks this will be something special.

I want to talk a little about the Leonite warrants and the debt restructure that GRST recently went through and how this will positively impact the coming pps.

Giving the benefit of doubt I think some missed it.

Going back a couple of months there some traders that left messages on the board stating that Leonite would be purchasing 20% of the OS if the price ever hit 10 cents. From this the deduced that grst will be 10cents per share...with a further claim of better buy now..... it is true that this was part of the restructured deal with Leonite back in early 2020. However don’t forget that this option to purchase the 20% of the OS was good for five years...

https://www.otcmarkets.com/stock/GRST/news/story?e&id=1623620

All existing Leonite Warrants to be exchanged with a new Leonite five year warrant granting Leonite the option to purchase equity up to 20% of the outstanding common shares at $.10 subject to adjustment.

This was true this agreement was made. This was an amendment to the original terms of agreement...

However With that said in the recent news report that grst released we find the following..

https://www.globenewswire.com/news-release/2020/08/20/2081546/0/en/Ethema-Completes-Restructure-and-Gets-Ready-to-Open-New-Treatment-Facility.html

The Company announces today that it has completed its debt restructuring with Leonite Capital LLC (“Leonite”), including the completion of the additional new financing that was a condition of the restructuring.  The Company has amended the terms of its debt with Leonite

The remaining balance of the Leonite debt was reduced to $150,000, which had its terms reset to its original terms prior to its default on the note.  As part of the restructuring, Leonite exchanged all of its previous warrants for one new.

The new warrant has the same terms and conditions as the original terms of the warrant.

It states above the remaining balance had the terms reset to the original terms...

Leonite now owns the new class of shares that generate the 6% interest annually which works our to 2000$ a month...that 2000$ a month can be converted into common shares...one million shares a month..

Further to this I think that Leonite are already holding the preferred class A shares which equal to 100 million common shares. Which have a limit on when they can be converted or sold.

So Leonite already got their hands on 100 million shares and they did not have to wait five years.

https://www.sos.state.co.us/biz/ViewImage.do?masterFileId=19931034540&fileId=20201743466

Preferred series A ....total 10 million can convert into 10 common shares each....total 100 million....that is it everyone...


Back in June certain traders were saying that there would be no more dilution for several months....until sometime in October because Grst was in negotiations with their lenders which would cease dilution and true to the fact the OS has remained the same since then.

https://www.otcmarkets.com/stock/GRST/news/story?e&id=1623620

All of these agreements include lock-ups on the conversion to shares. Some of these agreements are finalized and some are pending completion of documentation. 

Now in the most recent report we find the following, that all the notes which were causing dilution have been dealt with completely and we should expect no more dilution.

Two of the companies were paid off completely and directly and the remaining two have accepted payment terms of 25 000$ each month starting October 2020

Thereby this will cease, this will stop all dilution of the OS.

https://www.globenewswire.com/news-release/2020/08/20/2081546/0/en/Ethema-Completes-Restructure-and-Gets-Ready-to-Open-New-Treatment-Facility.html

The Company had previously negotiated amendments with four of its variable rate convertible note holders Power Up Lending Group Ltd., First Fire Global Opportunities Fund LLC, Labrys Fund LP and Auctus Fund LLC that would give the Company a reprieve from further conversions under the notes.   As per the terms of those amendments, both Power Up Lending Group Ltd. and First Fire Global Opportunities Fund LLC have been paid out as per the terms of their amendments and the notes with Labrys Fund LP and Auctus Fund LLC have repayment terms starting in October.           

The debt of Grst has been restructured the terms of that restructuring have now eliminated all note holders from diluting the OS.

This is why with all the pending news and the acquisition of covid clear...Grst pps will spike beautifully.

Under that acquisition of covid clear which Grst retained the exclusive rights to sell the product to hospitals...ect in the USA and exclusive rights to sell the product in Canada ...I believe that grst will have tremendous sales of the product. The Ceo of this company has been involved in this sector of the medical industry for many years and has made many connections therefrom.