Ethema Health Corp (GRST)

[Bubae]

For those new to GRST, "...now the rest of the story” There is a reason why this is trading at this level and why it has gone down since earnings. Read the stickied content here with a critical eye.

$GRST REPORTED 900% INCREASE IN REVENUE. 15 POINTS DD.

1. Reported 900% increase in Q3 2021 revenue.
2, Q2 2021 revenue $96,000. Q3 2021 revenue $866,000.

Only $53.4K in additional net earnings over Q2 despite the millions that has went into the latest move for the ARIA entity which is also referred to as Ethema and ATHI in case you are reading the filings.

https://sec.report/Document/0001721868-21-000835/
Revenues $ 866,432 Period ended September, 31 operating income $118,964.
https://sec.report/Document/0001721868-21-000524/
Revenues $ 96,158 Period ended June, 30 operating income $65,554

3. REAL OTC Company.

LOL, this true 100%

4. OTC PINK Current.
Again, True 100%

5. HEALTH INDUSTRY.

OK, now not really. Ethema (GRST) is a self described ‘investment holding” company with 2 employees.

In the 10K annual 2020 filing Ethema is a self described "investment holding company" with 2 employees.

2020 10K annual filing
https://sec.report/Document/0001721868-21-000220/

Employees
As of December 31, 2020, Ethema Health Corporation had 2 employees.
Corporate Structure
The Company consists of the following entities:

Ethema Health Corporation (“Ethema”) (Parent company);
Ethema is the publicly traded investment holding company.




6. Ethema Health owns 75% of Addiction Recovery Institute of America (ARIA).

Ethema “controls” 75% of ARIA shares through retained voting rights., Much of ARIA is tied up in options to pay note holders who will retain 50% of the described ARIA ownership in the agreements. The agreements are detailed in 2020 Restructuring 8K.

December 2020 debt restructure 8K
https://sec.report/Document/0001721868-20-000600/

7. ARIA has FULL licenses for all five levels of care.

ARIA was fully licensed at the previous 174 bed facility. The two stories from the same publisher one year a part and the story is nearly unrecognizable as the same. Keep in mind for future reading that ARIA is also known as Evernia, and ATHI.

November 2020
ARIA treatment facility; Covid Clear; the Rise of Ethema Health Corp (OTCMKTS: GRST)
https://microcapdaily.com/aria-treatment-facility-covid-clear-the-rise-of-ethema-health-corp-otcmkts-grst/

September 2021
Ethema Health Corp (OTCMKTS: GRST) Powerful Runner as ARIA Treatment Center Secures New Licenses & Expansion of ARIA Property
https://microcapdaily.com/ethema-health-corp-otcmkts-grst-powerful-runner-as-aria-treatment-center-secures-new-licenses-expansion-of-aria-property/

November 2020 Micrcap Daily

“On September 30 GRST announced its majority owned subsidiary Evernia Health Center LLC (“Evernia”) has been issued a license from Florida’s Department of Children and Family Services to operate addiction treatment services at its location at 950 Evernia Street, West Palm Beach. The license includes detox, residential, partial hospitalization, intensive out-patient and out-patient services which allows Evernia to offer a full continuum of care at its location. Evernia will be doing business as Addiction Recovery Institute of America (ARIA) and has licensed this name from another Ethema subsidiary, Addiction Recovery Institute of America LLC.”


8. ARIA completed 1 year of operations in October 2021.

Ethema (GRST) has been playing with this ARIA, Evernia, ATHI entity for years and has been the primary source of all the losses and accumulated debt to date.

ARIA history from 2019 10K
https://sec.report/Document/0001721868-20-000304/
ARIA
...On February 13, 2017, the Company, through its subsidiary, ARIA, entered into a Mortgage and Security Agreement to purchase the properties located at 801 and 810 Andrews Avenue, Delray Beach, Florida, for an aggregate principal sum of $3,000,000, bearing interest at the rate of 5% per annum, maturing on February 13, 2020, with monthly installments of $15,000...



9. Decent share structure in OTC PINK Market.

Share structure is experiencing ongoing destruction since the beginning of the year. This will continue because of the eligible conversions currently in the pipeline. The rate has increased to 500 million shares a quarter and certainly “feels” like it is headed for the reverse split.

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

The Company has authorized 10,000,000,000 shares with a par value of $0.01 per share. The company has issued and outstanding 3,111,047,811 and 2,027,085,665 shares of common stock at September 30, 2021 and December 31, 2020, respectively.


Outstanding Shares----2,601,515,456----06/30/2021
Outstanding Shares----2,813,515,456----07/12/2021
Outstanding Shares----2,899,848,789----08/24/2021
Outstanding Shares----2,959,108,419----09/24/2021
Outstanding Shares----3,051,047,811----09/27/2021
Outstanding Shares----3,111,047,811----09/29/2021 509.5 million shares Q3
Outstanding Shares----3,173,047,811----10/13/2021
Outstanding Shares----3,181,270,033----10/18/2021
Outstanding Shares----3,231,766,761----10/26/2021
Outstanding Shares----3,315,538,708----11/01/2021
Outstanding Shares----3,354,944,018----11/16/2021 (39,405,310) + 55 million restricted = 94.4
million shares converted.
Outstanding Shares----3,429,944,018----11/23/2021 +75 million --- 318,896,207 +55 million = 373,896,207
Outstanding Shares----3,488,371,109----11/24/2021 ----+58,427,091
377,323,298 + 55 million restricted 432,323,298 so far for Q4



10. The CEO and family own 100M+ shares in the company.

The son acquired 100 million shares for $25K or .00025 a share. The Leon’s are actually owed a lot of money by the company. The CEO hasn’t purchased any shares since 2018 and none of them are taking shares for the money owed to them.

Q2 period ended June 30 2021 filing.
https://sec.report/Document/0001721868-21-000524/

14. Related party transactions

Shawn E. Leon

As of June 30, 2021 and December 31, 2020 the Company had a payable to Shawn Leon of $373,231 and $322,744, respectively. Mr. Leon is a director and CEO of the Company. The balances payable are non-interest bearing and has no fixed repayment terms.

Due to the current financial position of the Group, Mr. Leon forfeited the management fees due to him for the three and six months ended June 30, 2021 and for the year ended December 31, 2020.

Leon Developments, Ltd.

As of June 30, 2021 and December 31, 2020, the Company owed Leon Developments, Ltd. $966,538 and $930,307, respectively, for funds advanced to the Company.

Eileen Greene

As of June 30, 2021 and December 31, 2020, the Company owed Eileen Greene, the spouse of our CEO, Shawn Leon, $1,532,284 and $1,558,798, respectively. The amount owing to Ms. Greene is non-interest bearing and has no fixed repayment terms.

All related party transactions occur in the normal course of operations and in terms of agreements entered into between the parties.

Shawn Leon form 4
https://sec.report/Document/0001721868-18-000742/
10K
https://sec.report/Document/0001721868-21-000220/


"On June 1, 2020, the Company issued 100,000,000 shares to Ethan Leon, the son of our CEO in settlement of $25,000 of advances made to the Company by Eileen Greene and assigned to Ethan Leon,"

"During December 2020, the Company issued 4,000,000 Series A Preferred shares at par value of $0.01 per share to Eileen Greene, the spouse of our CEO, in settlement of $40,000 of advances made to the Company."

11. The CEO is well educated.
Real investors and note holders have done very well, shareholders? Not so much.

12. The CEO has many years of industry experience running successful businesses.

Not this one

13. The CEO belongs to a MULTI BILLION DOLLAR family.


14. On track to report millions in annual revenue going forward.

You didn’t see the CEO bragging about revenue in the Q3 press release and for good reason. Net earnings for the revenue claimed is embarrassing considering the millions in toxic financing that went into it.
https://www.globenewswire.com/news-release/2021/11/23/2339427/0/en/Ethema-Releases-Third-Quarter-Results.html
“…The facility has been averaging a net collection of gross billings at a rate of approximately 13%...”
“The segmented information for the ARIA treatment center was an EBITDA of $47,359 for the quarter..."

15. The CEO reported in Q3 2021, they will do expansion in 2022.

Translation, stand by for more toxic debt deals.


Q3 2021 10Q filing
https://sec.report/Document/0001721868-21-000835/

Liquidity and Capital Resources

..."Over the next twelve months we estimate that the company will require approximately $1.5 million in working capital as it continues to develop the Evernia facility and it is also exploring several other treatment center options and sources of patients throughout the country. The company 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 medium."...