Ethema Health Corp (GRST)

[Bubae]

Dead money here for a while and deader than dead when they finally get the reg "A" offering inline with reality.. The June Leonite note will default for a total of $1 million by design in my opinion. They have been telling this same build story while promoting a bogus EBITDA number for more than a year now. So they need a new story and fix this share structure to make the offering at .0012 viable. Even when viable they will need to sell an awful lot of shares at .0012 to deal with their immediate debt problems.

The offering is useless at the moment and so are owning 8s and 9s since there is roughly $750K in notes currently eligible to convert at .001. If 8s and 9s aren't sellable those buying the few 7s are in good company with those who would love to dump their 7s and 8s. So the bid sits at 4 with those hoping that they can flip at 5 or 6 taking the chance that the reverse split doesn't come soon. They need news to do it and the company went quiet for 90 days after the Q3 2021 filing. Bottom line is that a regulation "A" offering combined with a company drowning in debt is very bad for shareholders.


The balance on the Leonite note that partially converted February 28th is $173K, converts at .001.

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

10. Short-term Convertible Notes (continued)
Leonite Capital, LLC (continued)

On February 28, 2022, in terms of a conversion notice, Leonite converted the principal sum of $149,250 of the Leonite Note into 150,000,000 shares of common stock at a conversion price of $0.0010 per share.


Joshua Bauman

On October 21, 2021, the Company entered into a Securities Purchase Agreement with Joshua Bauman (“Bauman”), pursuant to which the Company issued a senior secured convertible promissory note in the aggregate principal amount of $150,000, including an original issue discount of $16,250. The note bears interest at 11.0% per annum, which is guaranteed and earned in full on issue date and matures on October 21, 2022. The note may be prepaid at certain prepayment penalties and is convertible into shares of common stock at a conversion price at the option of the holder at $0.001 per share, adjusted for anti-dilution provisions.

On July 12, 2020, the Company entered into a Senior Secured Convertible Note agreement with Leonite for $440,000 with an original issue discount of $40,000 for gross proceeds of $400,000, the initial tranche advanced will be for cash of $200,000 plus the OID of $20,000, the remaining advances will be at the discretion of the Leonite. The loan bears interest at 6.5% per annum and matures on June 12, 2021. The Company is required to make monthly payments of the accrued interest on the advances made.

Ethema Continues to Reduce Debt
March 01, 2022 10:19 ET | Source: Ethema Health Corporation
https://www.globenewswire.com/en/news-release/2022/03/01/2394545/0/en/Ethema-Continues-to-Reduce-Debt.html

...The Company entered into a forbearance agreement with Leonite Capital Inc. (“Leonite”) for their note dated July 12, 2020 which limits certain collection activities for payment defaults until June 28, 2022. The current conversion price being employed on the note is $.001 per share...