Ethema Health Corp (GRST)

[Bubae]

..... The debt should soon be eliminated!....

That is a pretty ambitious comment considering that they are still borrowing very short term and expensive money to get through Q2. Leonite is owed in excess of $3 million, series "n" note holders $3.9 million now in default, The Leons are owed at least $2.5 million. These are just the largest holders and Leonite's debt is senior secured debt. Can't convert debt with the current narrative and share structure. Borrowing their way out of short term cash flow problems is quickly coming to an end in my opinion.

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.