Friday, December 16, 2022 7:09:53 AM
They have dragged their feet for the entirety of 2022 with regard to paying down debt and now it is a problem. The offering isn't viable with this story and share structure and they are doing nothing to address it. With roughly $750K in debt eligible to convert at .001 and the offering sitting at .0012 who is buying 8s and 9s? If you can't flip 8s who buys 7 and so on. Now the area of accumulation is 5s and everyone isn't going to make money flipping this before the company gets their act together.
Bottom line is that a regulation "A" offering creates a pool of free trading shares and dilution is never good for current 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/
[color=red]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...
Everything that I post is just my informed opinion and is simply an invitation to debate. Trade on your own due diligence please..
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