Ethema Health Corp (GRST)

[Bubae]

It would be interesting to see how successful his previous ventures were. They sold the treatment center business in Canada retaining the property and brought those funds to Florida in 2017. In just a few years they managed to rack up an accumulated deficit of $55 million and close two treatment centers. They managed to scrape up enough capital get this latest venture off the ground for the primary purpose of selling shares to pay down some of that debt in my opinion.

Now it appears that Leonite will become puppet master in less than 6 months of their own ATM machine. Again in my opinion. A dream come true for a toxic financier who loaned them nearly $1 million in Q2 that potentially hands over all of the assets of Ethema Health Corporation and Addiction Recovery Institute of America, LLC. It was Leonite that ended up with the Delray Beach, Florida property in October 2019 in exchange for debt. Just a few months before closing the previous West Palm Beach treatment center in January 2020.


For the fiscal year ended: December 31, 2019
https://sec.report/Document/0001721868-20-000304/

Delray Beach Real Estate
On April 2, 2019, the Company disposed of the real property at 801 Andrews Avenue, Delray Beach for gross proceeds of $3,500,000, retaining the property at 810 Andrews Avenue Delray Beach, Florida, which property, was transferred on October 10, 2019, in terms of a deed of transfer, to Leonite Capital, LLC, for net proceeds of $1,398,510, which proceeds were offset against the convertible loan owing to Leonite. Subsequent to year end, in terms of the Deed of transfer an additional $36,470 of expenses were incurred relating to the disposal of the property, these expenses were added to the Leonite convertible loan balance outstanding.


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

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.


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.