Ethema Health Corp (GRST)

[Bubae]

The wasted the entire year with inaction. It was pretty clear at the beginning of the year that the dilution wasn't going to produce much more benefit. The dilution to .001 reset a number of notes which currently stands at roughly $750K. They were still selling plenty of 9s in January and February and they clearly should have known that they needed a split and to get an offering in place. Now the debt grows every quarter along with the debt servicing obligations.

Hey the good news is that they are growing their EBITDA number with the liability side of the spreadsheet which has been good for conning traders into believing that it represents profitability. Now the offering is in place and they badly need a new story because this one is done. We know this because their description of the business is the same as it was over a year ago.


EBITDA = Net Income + Taxes + Interest Expense + Depreciation & Amortization

For the quarterly period ended March 31, 2022
https://sec.report/Document/0001903596-22-000301/
Interest expense $ 80,768

For the quarterly period ended June 30, 2022
https://sec.report/Document/0001903596-22-000529/
Interest expense $122,848

For the quarterly period ended September 30, 2022
https://www.otcmarkets.com/filing/html?id=16200583&guid=wEG-knVR-IG9dth
Interest expense $163,561



PRELIMINARY OFFERING CIRCULAR DATED SEPTEMBER 8, 2022,
https://sec.report/Document/0001903596-22-000650/
Summary
...We operate the Addiction Recovery Institute of America, a 41-bed addiction treatment facility located in West Palm Beach, Florida. This facility is a three-story building with unfinished commercial space on the first floor and two floors of mixed commercial and residential space where clients are treated and sleep. The first-floor space is being completed at which time it will allow the center to expand to 52 beds by moving existing treatment space from the 2nd floor to the 1st Floor.


FAQ Page July 27th 2021
https://ethema.wpengine.com/?page_id=683

What can the total bed count be?

The ARIA lease includes approximately 4,000 square feet on the first floor of the building which is currently being built out for staff offices and treatment group rooms. This finished space will allow us to free up space on the second and third floor presently being used for offices and treatment and add 2 more detox beds, and 10 more partial hospitalization beds for a total of 54 beds. This is expected to be completed by September so that these extra beds should reflect in the fourth quarter numbers.