Ethema Health Corp (GRST)

[Bubae]

That is a very musing statement for anyone paying attention to Shawn Leon's press release statements. I have thrown out a press release challenge to board members for a very long time. Pick any statement in the press release and I will show you what really happened referencing subsequent press releases and the filings. To date, no takers.

One of the materially worst released statements that the CEO did know, or should have known is the press release dated March 1st 2022 which was among four promotion press releases that week that saw 150 million shares converted. That press release included statements describing payments to be made for the LABRYS two notes soon to mature. Of course those two notes turned into the June Leonite note that as of Q1 2023 started earning default interest.

Money was raised in Q2 and what did they do with it? They didn't pay on the LABRYS notes. They converted 150 million shares at .001 for Leonite. The LABRYS notes were eligible to concert at .001 but Leonite got the shares? The wrote two notes for Leonite during this period for net proceeds of $160K. Non eo fthat money went to the LABRYS notes. that $160 became $375K with default penalties, monitoring fees and 24% interest. Q2 2022 aslo saw the first tranche of receivables funding for net proceeds of $195K. Did any of that go to the LABRYS notes? Of course not.

Recap, $150K in conversions, $161K in two Leonite notes and $195K from receivables funding, not nickel went to the LABRYS notes. It wouldn't have taken much more to have simply paid off the $596K in Labrys debt. Lets finally stop with the integrity of this CEO and take an objective look through the lens of History!

I do not know why but I tend to believe Leon more than an anonymous poster herein ???

Globe newswire Ethema Health Press release History, 5 pages going back to 2018
https://www.globenewswire.com/en/search/organization/Ethema%2520Health%2520Corporation

For the quarterly period ended June 30, 2022
https://www.otcmarkets.com/filing/html?id=16018411&guid=mFD-k6UER57qJth

14. Receivables Funding

On May 31, 2022 the Company, through its 75% held subsidiary, Evernia Health Center, LLC entered into a Receivables Sale Agreement with Itria Ventures LLC (“Itria”), whereby $240,000 the Receivables of Evernia were sold to Itria, for gross proceeds of $200,000. The Company also incurred fees of $4,500, resulting in net proceeds of $195,500. The Company is obliged to pay 6.5% of the receivables until the amount of $240,000 is paid in full, with periodic repayments of $5,000 per week. The guarantor of the funding is a minority shareholder in ATHI.




Ethema Continues to Reduce Debt
March 01, 2022 10:19 ET
https://www.globenewswire.com/en/news-release/2022/03/01/2394545/0/en/Ethema-Continues-to-Reduce-Debt.html

The amendment which also altered the Maturity Date to May 31, 2022 calls for the balance to be paid in the following amounts on the following dates; $100,000.00 on March 31, 2022, $150,000.00 on April 30, 2022 and $136,000.00 on May 31, 2022. As long as these payments are made Labrys has agreed not to make any conversions under the note.

A similar amendment was made to the Labrys $230,000.00 note dated June 2, 2021 such that there will be no conversions under the note as long as the note is repaid in two equal payments of $127,650.00 on May 31, 2022 and June 30, 2022. The maturity date of the note was amended to June 30, 2022.




8. 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 $231,481 as of March 31, 2023.


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 $143,634 as of March 31, 2023.