Ethema Health Corp (GRST)

[Bubae]

I quote from the filings and press releases directly from the company. Buying back 75% of the shares of a treatment center that it once owned doesn't make it a health care company.

ARIA is in the treatment business and Ethema (GRST) is in the "investment holding" business as stated in the filings in my opinion. Much of the purported ARIA shares are held by note holders in the form of options. The debt and bills are left for trading losses here.

In fact much of Cranberry Holdings which has a share structure of its own and holds the Canadian real estate is owned by Leonite in the form of series "A" preferred shares. That was handed over for debt owed in the debt restructuring deal. That property is also mortgaged so when you distill out the ownership of the two assets that Ethema (GRST) purportedly owns you find that it is very little. They maintain voting rights, thus "control" but not much else when you consider a $46 million accumulated deficit.


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

Leonite Capital LLC

On July 12, 2020, the company entered into a debt extinguishment agreement with Leonite whereby the following occurred:

1. The total amount outstanding under the note, including principal and interest was reduced to $150,000

2. $700,000 of the note was converted into Series A Redeemable Preferred shares in the Company’s subsidiary, Cranberry Cove Holdings, accruing dividends at 10% per annum.



For the quarterly period ended September 30, 2021
https://sec.report/Document/0001721868-21-000835/


22. Commitments and contingencies


c. ATHI Option agreements


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 33% of ATHI from the Company for a purchase consideration of $0.0001 per share, based on the advances that Leonite made to the Company totaling $655,000. 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 2.5% of ATHI from the Company for a purchase consideration of $0.0001 per share, 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 6.25% of ATHI from the Company for a purchase consideration of $0.0001 per share, based on the advances that First Fire made to the Company totaling $125,000. 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 6.25% of ATHI from the Company for a purchase consideration of $0.0001 per share, based on the advances that Bauman made to the Company totaling $125,000. 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.




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.