Ethema Health Corp (GRST)

[Bubae]

Those who trade on those press release numbers and hype are holding the bag on this stock. The debt is still huge and is the result of the previous two failed treatment centers. The facility is built out. They added 10 beds to an adjacent leased property with $2600 square feet, again done. That is why they are talking about letters of intent in the latest press release. That will take funding and they are tapped out. The June Leonite note secures the remaining assets of the Ehema (GRST) and they are now borrowing against future receipts. They are now in default on several notes including the $3.9 million in series "N" notes. Where does future capital come from for those LOIs let alone retiring any more debt. No dilution since they dumped 150 million shares on the February 28th press release, but they have notes sitting at .001 waiting for another opportunity. Cash flow is anemic and they continue to borrow. They need to fix the share structure and get back to selling shares in my opinion.

Ethema Reports Second Quarter Results
August 15, 2022 15:00 ET | Source: Ethema Health Corporation
https://www.globenewswire.com/news-release/2022/08/15/2498474/0/en/Ethema-Reports-Second-Quarter-Results.html

...The Company’s ARIA subsidiary continued its growth and had a $404,700.00 EBITDA for the second quarter which was a 117% increase over the first quarter of 2022...


Revenues
Revenues were $1,138,032 and $96,158 for the three months ended June 30, 2022 and 2021, respectively,...

Operating expenses were $1,086,270 and $30,614 for the three months ended June 30, 2022 and 2021, respectively,...


For the quarterly period ended June 30, 2022
https://sec.report/Document/0001903596-22-000529/

Leonite Fund I, LP

Effective June 1, 2022, The Company entered into a Note Exchange Agreement whereby the convertible promissory notes entered into with Labrys Fund LP on May 7, 2021, with. A principal outstanding of $341,000, and on June 2, 2021 with a principal outstanding of $230,000 and accrued interest thereon of $25,300, were exchanged for a new Senior Secured Convertible Promissory note in the principal amount of $745,375, including an OID of $149,075. The Note matures on March 1, 2023, and bears interest at the minimum of 10% per annum or the Wall Street Journal quoted prime rate plus 5.75%.

The convertible note is secured by all of the assets of Ethema Health Corporation and Addiction Recovery Institute of America, LLC.