Ethema Health Corp (GRST)

[Bubae]

The point is that this company claims that cash flow will pay the $745K June Leonite in the next 6 months. This "exchange note" paid the $595K Labrys note note payments including the default premium. Good reason why Ethema is paying a $150K penalty if the note isn't paid by October 1st. At the same time they borrow $240K against future cash flow. They also received a bit more than $200K including the 20% fee on new notes in Q2 that also matured in Q2 and have not been paid as of the Q2 filing date.

We aren't even including other debt like the $3.9 million in series "N" notes that are now also in default as of the Q2 filing. hysterical hyperbole!?! I think not. What is worse is that they apparently are unable to convert any of that debt without severe consequences below .001. This company had net earnings of $2600 for the first 6 months of 2022. So no hysteria here since I have no position in this stock, but they can't BS most traders about what they are going to do with their cash flow.


Ethema Files 8K on Debt Restructure
July 22, 2022 15:09 ET | Source: Ethema Health Corporation
https://www.globenewswire.com/en/news-release/2022/07/22/2484639/0/en/Ethema-Files-8K-on-Debt-Restructure.html

Mr. Shawn Leon, Company CEO, reported, “We worked collaboratively with one of our long term investors to purchase the expiring notes from Labrys Fund and convert them into a new extended term note. This will enable the Company more time to generate cash flow for repayment of the debt. The Company’s ARIA subsidiary is steadily increasing cash flow and should generate enough to repay the note in full prior to maturity.”



14. Receivables Funding

On May 31, 2022 the Company, through its 75% held subsidiary, Evernia Health Center, LLC entered into a Receivables Sale Agreement with Itria Ventures LLC (“Itria”), whereby $240,000 the Receivables of Evernia were sold to Itria, for gross proceeds of $200,000. The Company also incurred fees of $4,500, resulting in net proceeds of $195,500. The Company is obliged to pay 6.5% of the receivables until the amount of $240,000 is paid in full, with periodic repayments of $5,000 per week. The guarantor of the funding is a minority shareholder in ATHI.



Leonite Capital, LLC
Secured Promissory Notes

On March 1, 2022, the Company entered into a secured Promissory Note in the aggregate principal amount of $124,000 for net proceeds of $100,000 after an original issue discount of $24,000. The Note had a maturity date of April 1, 2022. This note has not been repaid at the date of this report and no default has been declared.

On May 3, 2022, the Company, entered into a secured Promissory Note in the aggregate principal amount of $76,250 for net proceeds of $61,000 after an original issue discount of $15,250. The Note had a maturity date of June 17, 2022 and bears interest at the rate of zero percent per annum from the date on which the Note was issued until the same became due and payable.

We are in discussions with Leonite on the repayment of these notes.