Ethema Health Corp (GRST)

[Bubae]

3 months left before they default on the Leonite $745K June note that is secured by all of the assets of the company. Only those that have access to the "Security and Pledge Agreement" referenced in the note can say exactly what that means. How will they use the offering to raise capital in such a short time in this market for the purpose of retiring debt? At more than twice the current trading price, they will need to move more than 620 million shares just to cover the $745K before the 24% default interest kicks in. To attract buyers for those offering shares at .0012, they will need a trading price more than twice the offering with huge volume. The balance on the note hasn't changes in 6 months according to the latest quarterly, yet they continue to borrow every quarter. This is only addressing this single note. The rate that this company dawdles along each quarter they may not be in a position to sell the offering until the first of the year. I still expect them to promote and sell this down before the split and maybe raise something like $200K.


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

Leonite Fund I, LP

Effective June 1, 2022, The Company entered into a Note Exchange Agreement whereby

..., were exchanged for a new Senior Secured Convertible Promissory note in the principal amount of $745,375,... .

...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.

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

...The obligations of the Borrower under this Note are secured pursuant to the terms of the security and pledge agreement (The "Security and Pledge Agreement" and collectively the Purchase Agreement, the "Related Documents"...