Ethema Health Corp (GRST)

[Bubae]

The consequences of the lawsuit go beyond the question of culpability. The fact that the situation has been going on so long and hasn't been disclosed raises a lot or questions. The huge increase in professional fees in Q4 2022 and Q1 2023 with the deterioration of their cash during the same periods may indicate a material impact on the balance sheet that surely should have been disclosed.

The June Leonite note is secured by all assets of the company. How does the litigation impact their ability to negotiate this debt obligation. How will this impact the viability of the regulation "A" offering. How is it affecting their ability to secure new loans? They ended Q1 with only $28K in cash with no indication through subsequent events to the filing date that new funding has been secured.



For the quarterly period ended September 30, 2022
https://www.otcmarkets.com/filing/html?id=16200583&guid=2UT-kn10eYd-B3h
Q3 2022 cash Balance $561,083
Professional fees for Q3 $19,131

For the fiscal year ended: December 31, 2022
https://www.otcmarkets.com/filing/html?id=16535244&guid=tnu-kFMehiFUdth
Cash Balance end of 2022 $140,757
Total Professional fees 2022 $463,678

Q4 2022 professional fees $282,811

For the quarterly period ended March 31, 2023
https://www.otcmarkets.com/filing/html?id=16673787&guid=tnu-kFMehiFUdth
Cash Balance end of Q1 2023 $27,580
Professional fees $111,204 for Q1



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"...