Ethema Health Corp (GRST)

[Bubae]

They need to get back to debt conversions and this share structure and narrative is now useless for meaningful debt reduction. The narrative will need to change or fixing the share structure will only be a temporary fix. The $3.9 million series "N" note holders have come off their neutral stance and now those notes are in default. Other notes are now in default and continued to borrow in Q2. This 2 year old story is done in my opinion. Time for a massive redirection and is probably why they spent so heavily in Q2 for professional services.


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.


For the fiscal year ended: December 31, 2021
https://sec.report/Document/0001903596-22-000192/

Professional fees were $132,275 and $231,264 for the years ended December 31, 2021 and 2020, respectively,a decrease of $98,989 or 42.8%. The decrease is primarily due to consulting fees that were paid to two individuals in the prior year who had assisted with business development efforts.

For the quarterly period ended March 31, 2022
https://sec.report/Document/0001903596-22-000301/

Q1 2022 Professional fees $49,587

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

Q2 2022 Professional fees $112,149

Total for the first 6 months of 2022 $161, 736