Ethema Health Corp (GRST)

[Bubae]

You probably have plenty of time to catch a third flip on this. They need to do a lot to make the offering viable and I don't believe that they have any intention of paying off that Leonite note. Why waste the offering on debt payment when they need a new story badly.

The remaining assets that the company can claim aren't worth the $1 million in a soon to be defaulted Leonite note. They only paid $460K for the last 24 percent of ATHI (AKA ARIA, AKA Ethema) shares and 48% of the original 51% is secured by note holders in the form of options. 33% of that 51% is claimed by Leonite options. They can continue to boast about the bogus EBITDA number even if they don't own any of the treatment center like they have for the past year. Leonite also holds $700K against the Canadian property and with the mortgage that was due in July it isn't worth much more than that.


For the quarterly period ended September 30, 2022
https://www.otcmarkets.com/filing/html?id=16200583&guid=ieG-keZPsChJ2Vh


...Pursuant to the terms of the Purchase Agreement, the consideration paid for 75% of the equity of ATHI was $50,000 in cash plus the issuance of 100,000,000 shares of the Company’s common stock with a market value of $410,000 on the date of acquisition...


2020 December Debt Restructuring 8K
https://sec.report/Document/0001721868-20-000600/

22. Commitments and contingencies

c. ATHI Option agreements

On July 12, 2020, the Company entered into a five year option agreement with Leonite Capital LLC (“Leonite”) and other investors (collectively the “Transferees”), the Company agreed to sell to Leonite a portion of the total outstanding shares of ATHI from the shares of ATHI held by the company. The Company provided Leonite an option to purchase 33% of ATHI from the Company for a purchase consideration of $0.0001 per share, based on the advances that Leonite made to the Company totaling $655,000. Leonite shall share in all distributions by ATHI to the Company, on an as exercised basis, equal to the advances made by Leonite to the Company, thereafter the option will be reduced to 50% of the shares exercisable under the option.

On September 14, 2020, the Company entered into a five year option agreement with Ed Blasiak (“Blasiak”) whereby the Company agreed to sell to Blasiak a portion of the total outstanding shares of ATHI. The Company provided Blasiak an option to purchase 2.5% of ATHI from the Company for a purchase consideration of $0.0001 per share, based on the advances that Blasiak made to the Company totaling $50,000. Blasiak shall share in all distributions by ATHI to the Company, on an as exercised basis, equal to the advances made by Blasiak to the Company, thereafter the option will be reduced to 50% of the shares exercisable under the option.

On October 29, 2020, the Company entered into a five year option agreement with First Fire whereby the Company agreed to sell to First Fire a portion of the total outstanding shares of ATHI. The Company provided First Fire an option to purchase 6.25% of ATHI from the Company for a purchase consideration of $0.0001 per share, based on the advances that First Fire made to the Company totaling $125,000. First Fire shall share in all distributions by ATHI to the Company, on an as exercised basis, equal to the advances made by First Fire to the Company, thereafter the option will be reduced to 50% of the shares exercisable under the option.


On October 29, 2020, the Company entered into a five year option agreement entered into with Bauman, so that the Company agreed to sell to Bauman a portion of the total outstanding shares of ATHI. The Company provided Bauman an option to purchase 6.25% of ATHI from the Company for a purchase consideration of $0.0001 per share, based on the advances that Bauman made to the Company totaling $125,000. Bauman shall share in all distributions by ATHI to the Company, on an as exercised basis, equal to the advances made by Bauman to the Company, thereafter the option will be reduced to 50% of the shares exercisable under the option.