Ethema Health Corp (GRST)

[Bubae]

You do know why the options exist right. They are to secure the loans made by the participating parties. To not exercise for what is really relatively nothing to benefit in the earnings from ARIA to pay down the loans defeats the whole point.

Really, who cares about that right now. The story is the toxic conversions in place. LABRYS fund $780K is supposed to convert before the May and June maturity dates. So consider $1.5 million in shares to convert the next 6 months. At the current price they would need 1.5 billion shares or about 63 million new shares a week on average. That is just for the two LABRYS fund notes. We aren't even talking about the warrants. Leonite's $400K in preferred "B" shares issued as part of last years debt restructuring are eligible as well. Emphasize at the current price for the basis for the conversions.

Throwing around a revenue number for this stock is pointless since they net so little from the ARIA operation. They essentially bought a break even situation as far as shareholders are concerned.

Debt restructuring 8K December 2020.
https://sec.report/Document/0001721868-20-000600/


Q3 filing 2021
https://sec.report/Document/0001721868-21-000835/

Revenues $866,432 Period ended September, 31 operating income $118,964.

Q2 filing 2021
https://sec.report/Document/0001721868-21-000524/

Revenues $ 96,158 Period ended June, 30 operating income $65,554



https://sec.report/Document/0001721868-21-000835/

"All of the warrants outstanding at September 30, 2021 are vested. The warrants outstanding at September 30, 2021 have an intrinsic value of $1,984,035."

$235K in warrants converted in Q3





https://sec.report/Document/0001721868-21-000524/

"On May 7, 2021, the Company, entered into a Securities Purchase Agreement with Labrys, pursuant to which the Company issued a Convertible Promissory Note in the aggregate principal amount of $550,000 for net proceeds of $477,700 after an original issue discount of $55,000 and certain legal expenses of $17,300. The Note has a maturity date of May 7, 2022 and bears interest at the rate of eleven percent per annum from the date on which the Note was issued until the same became due and payable, whether at maturity or upon acceleration or by prepayment or otherwise. The Company has the right to prepay the Note in terms of agreement. The outstanding principal amount of the Note was convertible at any time and from time to time at the election of Labrys during the period beginning on the date that is 180 days following the issue date into shares of the Company’s common stock at a conversion price equal to $0.005, subject to anti-dilution adjustments."

"On June 2, 2021, the Company, entered into a Securities Purchase Agreement with Labrys, pursuant to which the Company issued a Convertible Promissory Note in the aggregate principal amount of $230,000 for net proceeds of $200,000 after an original issue discount of $23,000 and certain legal expenses of $7,000. The Note has a maturity date of June 2, 2022 and bears interest at the rate of eleven percent per annum from the date on which the Note was issued until the same became due and payable, whether at maturity or upon acceleration or by prepayment or otherwise. The Company has the right to prepay the Note in terms of agreement. The outstanding principal amount of the Note was convertible at any time and from time to time at the election of Labrys during the period beginning on the date that is 180 days following the issue date into shares of the Company’s common stock at a conversion price equal to $0.004, subject to anti-dilution adjustments."


https://sec.report/Document/0001721868-21-000350/

anti-dilution adjustment based on par value for conversion is .01

1.1 Conversion Right. The holder on any calendar day, at any time on or following the issue date, to convert all or any portion of the then outstanding and unpaid Principle Amount and interest (including any Default Interest) into fully paid and non-assessable shares of Common Stock.

1.2 Conversion Price

(a) Calculation of Conversion Price The per share conversion price into which Principle Amount and interest (including any Default Interest) under this Note shall be convertible into Common Stock hereunder (the “Conversion Price”) shall equal $0.005. If at any time the Conversion Price as determined hereunder for any conversion would be less than par value of the common stock, then at the sole discretion of the Holder, the conversion price hereunder may equal such par value for such conversion and the Conversion Amount for such conversion may be increased to include Additional Principle, where “Additional Principle” means such additional amount to be added to the conversion amount to the extent necessary to cause the number of conversion shares issuable upon such conversion to equal the same number of conversion shares as would have been issued had the Conversion Price not been adjusted by the Holder to the par value price.

LABRYS Fund $550K financing, May 2021
https://sec.report/Document/0001721868-21-000288/#f2sgrst8k051321ex10_02.htm

LABRYS Fund $230K financing, June 2021
https://sec.report/Document/0001721868-21-000350/#f2sgrst8k060921ex10_02.htm