Ethema Health Corp (GRST)

[Bubae]

The problem is that I quote the press releases and filings over time and the story trips all over itself. Most OTC companies are messy affairs but they normally try to carefully manage their debt, narrative, and share structures. This company just simply borrows every quarter and they have run out of reasonable options for do that. They aren't paying on their debt that festers at 24% interest, penalties and fees. This stock is essentially dead to the company at this point in terms of raising capital.

They received $161K from two Leonite notes early 2022 which has grown to $410K. They exchanged $596K in Labrys debt for the $745K Leonite note which should be worth North of $1 million now. The receivables funding that got them through the balance of 2022 and Q1 2023 is a bit over $566K as of March 31st. You are looking at a couple of a million dollars just in that activity.

Looking at their cash position. At the end of Q3 2022 they had $561K. By the end of Q1 2023 they had only $27.5K despite the 2023 receivables funding. When I see, with regard to the receivables funding, that the 'guarantor of the funding is a minority shareholder in ATHI' it tells me how weak credit status is. I'm thinking that when the minority holder is Lawrence Hawkins and his 25% you may have a credit problem.

Current shareholders represent old money that has been spent long ago. What they need is new money and they have neither been able to get to the point, after eight months, where the regulation "A" is viable, nor an agreement with Leonite on the immediate debt problem. But they must soon or just throw in the towel in my opinion.



For the quarterly period ended March 31, 2023
https://www.otcmarkets.com/filing/html?id=16673787&guid=DCu-kaTrf7_TB3h

11. Receivables funding

September 26, 2022 Funding

On September 26, 2022, the Company, through its 75% held subsidiary, Evernia Health Center, LLC, entered into a Receivables Sale Agreement with Itria Ventures LLC (“Itria”), whereby $310,000 of the Receivables of Evernia were sold to Itria, for gross proceeds of $250,000. The Company also incurred fees of $5,500, resulting in net proceeds of $244,500. The Company is obliged to pay 7.41% of the receivables until the amount of $310,000 is paid in full, with periodic repayments of $6,458 per week. The guarantor of the funding is a minority shareholder in ATHI.

The Company made weekly cash payments of $6,458 totaling $167,917 on the September 26, 2022 funding. The balance outstanding at March 31, 2023 was $147,083, less unamortized discount of $30,949.


December 13, 2022 Funding

On December 13, 2022, the Company, through its 75% held subsidiary, Evernia Health Center, LLC entered into a Receivables Sale Agreement with Itria Ventures LLC (“Itria”), whereby $305,000 of the Receivables of Evernia were sold to Itria, for gross proceeds of $250,000. The Company also incurred fees of $2,500, resulting in net proceeds of $247,500. The Company is obliged to pay 6.08% of the receivables until the amount of $305,000 is paid in full, with periodic repayments of $6,354 per week. The guarantor of the funding is a minority shareholder in ATHI.


The Company made weekly cash payments of $6,354 totaling $88,958 on the December 13, 2022 funding. The balance outstanding at March 31, 2023 was $211,042, less unamortized discount of $40,228.


January 19, 2023 Funding

On January 19, 2023, the Company received funding from an agreement entered into on December 14, 2022 through its 75% held subsidiary, Evernia Health Center, LLC entered into a Receivables Sale Agreement with Bizfund.com (“Bizfund)”), whereby $132,000 of the Receivables of Evernia were sold to Bizfund, for gross proceeds of $100,000. The Company is obliged to pay 15.0% of the receivables until the amount of $132,000 is paid in full, with periodic repayments of $2,750 per week. The guarantor of the funding is a minority shareholder in ATHI.


The Company made weekly cash payments of $2,750 totaling $24,750 on the January 19, 2023 funding. The balance outstanding at March 31, 2023 was $107,250, less unamortized discount of $26,536.


February 14, 2023 Funding

On February 14, 2023, the Company, through its 75% held subsidiary, Evernia Health Center, LLC entered into a Receivables Sale Agreement with Fox Business Funding (“Fox”), whereby $118,800 of the Receivables of Evernia were sold to Fox, for gross proceeds of $90,000. The Company is obliged to pay 8.0% of the receivables until the amount of $118,800 is paid in full, with periodic repayments of $2,970 per week. The guarantor of the funding is a minority shareholder in ATHI.

The Company made weekly cash payments of $2,970 totaling $17,820 on the February 14, 2023 funding. The balance outstanding at March 31, 2023 was $100,980, less unamortized discount of $25,183.


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


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


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