Ethema Health Corp (GRST)

[Bubae]

Looks to me like they are done borrowing with the last Leonite secured note. Leonite essentially owns everything with the secured notes that cannot be paid. Who else would take a note with Leonites holdings here. With the share structure and three year old story that can't service the debt they can't raise any capital with new shares. The best that can happen here in my opinion is for the company to continue with the bogus EBITDA and ever changing bed count promotions. Maybe some can flip those 4s and 5s at 6.

That EBITDA number will be awesome with the Leonite note defaulting with a 24% interest calculated back to June 1st of the note. I suspect that they won't be filing anything for a while much like in January 2020 after they closed the treatment center. It would be different if income from operations was paying the interest expense but it isn't. The ever growing interest expense number is a result of quarterly borrowing to service the debt which represents a closed EBITDA growth loop. The CEO is very proud to promote that number none the less. I especially like the part where the CEO stayes " sole objective after repaying the debt". As if they will ever be able to pay off even the debt that is currently in default. Look how many times he mentions EBITDA in that press release. They have nothing more to promote.

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


Ethema Posts Strong 3rd Quarter Results and SEC Qualifies the Regulation A Form 1A Filing
November 29, 2022 08:00 ET | Source: Ethema Health Corporation
https://www.globenewswire.com/en/news-release/2022/11/29/2563968/0/en/Ethema-Posts-Strong-3rd-Quarter-Results-and-SEC-Qualifies-the-Regulation-A-Form-1A-Filing.html

The Company’s ARIA subsidiary continued its growth and had a $712,839.00 EBITDA for the first nine months of the year. The Company’s wholly owned subsidiary, PB Billing LLC, which started operating in May 2022, had an EBITDA of $34,579.00 for the first 9 months of the year. Companywide EBITDA for the first nine months of the year was $898,920.00.

Mr. Shawn Leon, Company CEO, reported, “We had set a goal at the beginning of the year for our ARIA subsidiary to produce an EBITDA of $1,000,000 for calendar 2022. It looks like we are on track to make that goal and are very proud of our many associates and team members for helping us get there.

...We expect to substantially grow the EBITDA in 2023 as growth will become our sole objective after repaying the debt.”