Ethema Health Corp (GRST)

[Bubae]

"hope springs eternal"

...People will keep on hoping, no matter what the odds...

Leonite allows company to operate to service their debt and the history of trading losses has paid for it. They have over $3 million in senior secured notes not to mention the continuous very expensive short term financing who's maturity is measured in weeks to help keep it going. After the company diluted the price down to .001 in 2021 they sat on their hands for 2022 as the situation festers and the debt grows again. Now they hope that the regulation "A" offering will retire some of the debt? You would have to believe that the offering at $.0012 can pay even the Leonite June note and expect the $750K in notes eligible to convert at .001 to simply watch. Even with that, Leonite has a strangle hold on this company who generates very little free cash from this very expensive business model.

Looks to me like the Leonite June note will default March 1st by design to reward Leonite for bailing them out of the defaulted Labrys note. So that will be right at $1 million after the $150K built in penalty and the 24% default interest that is calculated back to day one of the note. The "exchange agreement" was to retire the $596K of Labrys defaulted debt.

It is also stated in the June note that Leonite has the right to participate in any offering. This can be found in section 3.10 of exhibit "A" titled "Right of Participation". Looks to me like the plan is for the June note to default and for Leonite to be the principle subscriber to the offering where they will make even more money retiring $1 million of this note alone. This translates into massive future trading losses in my opinion because the purpose of the offering is to pay for the failed operations of the past and simply lets this continue for the benefit of the toxic lender Leonite.

First order of business in my opinion is to fix this share structure with the reverse split and to create a new narrative from which to sell those new shares. It appears to me that this operation to simply be the prototypical OTC model for toxic lenders to make money. If you want to make money from Ethema Health (GRST) invest in Leonite Capital.


June Leonite Note 8K
https://www.otcmarkets.com/filing/html?id=15961451&guid=22l-kF9quVj_dth

Regulation "A" Offering
https://www.otcmarkets.com/filing/html?id=16134441&guid=22l-kF9quVj_dth