Ethema Health Corp (GRST)

[Bubae]

Shawn Leon is no different than any other stinky pink CEO with a debt problem and shares that he can not sell. He will tell shareholders exactly what they want to hear in the moment and always has.

After not paying on any of the LABRYS fund notes as described in the March 1st 2022 press release he went on to exchange the note for an even more expensive Leonite June note that is secured by all of the assets of the company. Then he has the audacity to say in July 2022 that they will pay the Leonite note before maturity from cash flow. Some here knew even at the time that the statement was BS.

Not only has he not made any payments on the June 2022 note but also failed to pay anything on the very short term and expensive Leonite notes from early 2022. All of those notes are now valued more twice the original principle with 24% default interest and fees. they had no intention of paying on any of the recent Leonite debt in my opinion and is why Leonite is likely exercising their right under the elusive "Security and pledge agreement". Honest and transparent this CEO is not and we can parse every press release in the last several years to illustrate the point.

... This old post made me realize Mr. Shawn Leon Empathy and Dedication......What an Admirable Person he Is!!!.....

Ethema Files 8K on Debt Restructure
July 22, 2022 15:09 ET | Source: Ethema Health Corporation
https://www.globenewswire.com/en/news-release/2022/07/22/2484639/0/en/Ethema-Files-8K-on-Debt-Restructure.html

Mr. Shawn Leon, Company CEO, reported...

...This will enable the Company more time to generate cash flow for repayment of the debt. The Company’s ARIA subsidiary is steadily increasing cash flow and should generate enough to repay the note in full prior to maturity.”...


For the fiscal year ended: December 31, 2022
https://www.otcmarkets.com/filing/html?id=16535244&guid=QXm-kWGmkEC6Jth

12. Short-term Notes

Leonite Capital, LLC

Secured Promissory Notes

On March 1, 2022, the Company entered into a secured Promissory Note in the aggregate principal amount of $124,000 for net proceeds of $100,000 after an original issue discount of $24,000. Due to the failure to repay the note by due date, a penalty of $37,200 was added to the principal outstanding and the Company incurs a monthly monitoring fee of $2,000 per month. In addition the note earns interest at a default rate of 24% per annum on the total balance outstanding, including the monthly monitoring fee and accrued interest.

The Note had a maturity date of April 1, 2022. This note has not been repaid at the date of this report, we are in negotiations with Leonite to settle the balance outstanding and no default has been declared.

The balance outstanding on the note, including default penalty, interest accrued and monthly monitoring fees is $212,579 as of December 31, 2022.


On May 3, 2022, the Company, entered into a secured Promissory Note in the aggregate principal amount of $76,250 for net proceeds of $61,000 after an original issue discount of $15,250. Due to the failure to repay the note by due date, a penalty of $22,875 was added to the principal outstanding and the Company incurs a monthly monitoring fee of $2,000 per month. In addition the note earns interest at a default rate of 24% per annum on the total balance outstanding, including the monthly monitoring fee and accrued interest.

The Note had a maturity date of June 17, 2022. This note has not been repaid at the date of this report, we are in negotiations with Leonite to settle the balance outstanding and no default has been declared.

The balance outstanding on the note, including default penalty, interest accrued and monthly monitoring fees is $127,702 as of December 31, 2022.


For the quarterly period ended June 30, 2022
https://www.otcmarkets.com/filing/html?id=16018411&guid=5zm-kqGiKufgcVh

Leonite Fund I, LP

Effective June 1, 2022, The Company entered into a Note Exchange Agreement whereby

..., were exchanged for a new Senior Secured Convertible Promissory note in the principal amount of $745,375,... .

...The Note matures on March 1, 2023, and bears interest at the minimum of 10% per annum or the Wall Street Journal quoted prime rate plus 5.75%.

The convertible note is secured by all of the assets of Ethema Health Corporation and Addiction Recovery Institute of America, LLC.

June Leonite Note 8K
https://www.otcmarkets.com/filing/html?id=15961451&guid=5zm-kqGiKufgcVh

...The obligations of the Borrower under this Note are secured pursuant to the terms of the security and pledge agreement (The "Security and Pledge Agreement" and collectively the Purchase Agreement, the "Related Documents"...