Ethema Health Corp (GRST)

[Bubae]

This offering, if it were viable, will likely not be qualified for another 30 days or so. By then there will be less than 4 months left on the June Leonite note. When this note matures unpaid it will bear a default interest rate of 24% calculated from day one according to the 8K. That brings the total for the note to just shy of $1 million when the expenses are added in. What company can exchange a $1 million note for a $596K note? I'm thinking a stinky pink that has shares to burn and this one needs to get in that mode quickly somehow. That is just for this note, forget about the $4 million in currently defaulted debt or the 2 additional Leonite notes for $200K taken out in Q2 that also matured in Q2 . Either they intend to rapidly burn some shares or they are giving up the remaining assets to Leonite. Leonite has made a killing off of shareholder losses over the years with this company. They need an offering price that can sustain heavy average volume. How do they get there? Not saying it...


Leonite June 8K
https://sec.report/Document/0001903596-22-000464/

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.