Ethema Health Corp (GRST)

[Bubae]

The best thing about this moment in this company's history is that the toxic lender Leonite may finally get stiffed on some of their loans. I would like to know what the June note "extension and forbearance agreement" cost the company to kick it to May 8th, Last Monday. Ethema Health (GRST) hasn't been paying on their Leonite debt for nearly a year now and unless retail shows up en masse to bail it out they will choke on some of it. That June note must now be worth more than $1 million with 24% default interest and fees calculated back to day one of the note. The only way this company continues is for retail to step in a buy that worthless debt. End of story.

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"...


Ethema Extends Dates for Debt Repayment and Real Estate Closing
March 01, 2023 08:00 ET | Source: Ethema Health Corporation
https://www.globenewswire.com/en/news-release/2023/03/01/2618141/0/en/Ethema-Extends-Dates-for-Debt-Repayment-and-Real-Estate-Closing.html

Ethema Health Corporation (OTCPINK: GRST) (“Ethema”, “GRST” or the “Company”), has signed an [color=red][/color] with Leonite Capital Inc. extending the due date for its note due March 1, 2023. The Company will continue to pay interest on the note and it will be due May 8, 2023.