Ethema Health Corp (GRST)

[Bubae]

So they need to borrow every quarter to service the existing debt and wasted 2022 with managing to only convert 150 million shares for debt. So what changes for 2023? Yep committing to $3.8 million for the" intent" to acquire more business, Trying to purchase the existing property which is another $4 million by the end of the year, they need to refinance the $3.5 million mortgage to hold onto the Canadian property. That is a lot of financing and a heavy lift for this balance sheet. Ridiculous yet? How about loan defaults in excess of $4 million, 745K Leonite note that matures March 1st with default interest of 24% and about $750K in debt eligible to convert at .001. This doesn't cover all of their debt obligations but it is a lot to ask from an offering without a decent story.

For the quarterly period ended September 30, 2022
https://www.otcmarkets.com/filing/html?id=16018411&guid=0nG-ke5HEt7fJth

b. Mortgage loans

The company has a mortgage loan as disclosed in note 12 above. The mortgage loan matured on July 19, 2022 and the Company currently owes $3,490,791. The terms of the loan are currently being negotiated.

22. Subsequent events

Subsequent to September 30, 2022, the Company re-negotiated the deposit payable for the acquisition of the Evernia building , in which the treatment center is housed from $1,500,000 to $350,000 which was paid on October 3, 2022. The expected closing is expected to be February 1, 2023. The Seller will provide financing of $4,000,000 at a coupon of 6.36% per annum, with interest only payments of $21,217 per month.


22. Subsequent events

For the quarterly period ended June 30, 2022
https://www.otcmarkets.com/filing/html?id=16018411&guid=0nG-ke5HEt7fJth

On July 18, 2022, the Company, through its subsidiary Evernia, entered into an option and Memorandum of Understanding Purchase, Sale and Financing Agreement, with the Evernia landlord, Evernia Station Limited Partnership (“Seller”), whereby the Company paid $50,000 for the option to acquire the building on September 30, 2022 for $5,500,000, with a deposit of $1,500,000 due on September 30, 2022, the $50,000 option price to be applied to the deposit. The expected closing is expected to be February 1, 2023. The current rental of $27,783 was reduced to $20,206 on payment of the option price of $50,000. The Seller will provide financing of $4,000,000 at a coupon of 6.36% per annum, with interest only payments of $21,217 per month. The term of the seller funding will be one year, due and payable on January 31, 2024.