Ethema Health Corp (GRST)

[Bubae]

That is correct, the stock has been absolutely worthless to the company in terms of conversions and raising any capital so Shawn just continued to borrow to the point where the debt was, and is, in default. How desperate do you have to be to sign off on a deal for $2.3 million in net proceeds that was saddled with what appears to be nearly $1 million in fees alone. ($520,627.60 + $180,000 + $260,548 = $961,175) Now finance that and the $5.5 million for the treatment center over 20 years and end up owning nothing.

It is crazy that Ethema Health (GRST) shareholders poured so much money into this treatment center financed with toxic debt only to have to buy it all over again! The only business that can do things like this are those that can print shares which inevitably is paid for by shareholder losses. Right now this company is sitting on worthless shares so what will they do to fix the narrative and share structure is the question. Do they further con existing shareholders for new conversions at this price level? It happened before, right?



Property purchase, Sale, Lease Back finance deal 8K
https://www.otcmarkets.com/filing/html?id=16855888&guid=MOg-kqt7kD7fJth

Item 2.01 Completion of Acquisition or Disposition of Assets.

On August 4, 2023 the Company completed both the purchase of 950 from Evernia Station Limited Partnership and the sale of 950 to Pontus Net Lease Advisors, LLC. Net proceeds on the two transactions after payment of the extension fees was $2,820,000 and expenses for the two transaction not including the extension fees totaled $520,627.60.

Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.

On August 4, 2023 the Company entered into a long term lease for 950 with an initial term of twenty years, and two ten year extension options. The lessor is Pontus EHC Palm Beach, LLC , a Delaware limited liability company and a portfolio company of Pontus Net Lease Advisors, LLC. The lease is absolutely net and the lease cost for the initial year is $748,000 paid monthly. The lease increases at a rate of 2.75% per year for a total term lease obligation of $19,595,653 over the initial twenty-year term. The Lease is personally guaranteed by the Company President and the guarantee may be released after 5 years based on certain financial and performance metrics being met. The lease is attached hereto as Exhibit 10.6


For the quarterly period ended June 30, 2023
https://www.otcmarkets.com/filing/html?id=16878947&guid=MOg-kqt7kD7fJth

19. Subsequent events

Acquisition and simultaneous disposition of property

On October 3, 2022 the Company entered into a purchase and sale agreement with Evernia Station Limited Partnership for the purchase of 950 Evernia Street, West Palm Beach, Florida (“950”), the property in which it operates its treatment center, for gross proceeds of $5,500,000. (“Purchase Agreement”). The closing was originally scheduled for February 1, 2023, however through a series of 6 addendums to the Purchase Agreement requiring the payment of a total $180,000 in extension fees, the Closing was extended to August 3, 2023.

On May 4, 2023 the Company signed a Letter of Intent with Pontus Net Lease Advisers, LLC to sell 950 for $8,500,000 and lease the property to the Company for a term of twenty years with two ten year extensions.

The Company paid gross proceeds of $1,449,000 to Leonite Capital and Leonite Fund I, LP in settlement of all amounts outstanding to both entities, disclosed in notes 8 and 9 above. In addition, $65,450 was paid to Ed Blasiak to settle the convertible promissory note disclosed in note 8 above, $179,474 was paid to Joshua Bauman to settle the convertible promissory note disclosed in note 8 above, and $260,548 was paid to Mirage Realty, LLC to settle the senior secured promissory note, disclosed in note 9 above.



Details Series "N" note holders and the Leon's holdings
Bubae
Re: Koopa Troopa post# 48573
Tuesday, August 22, 2023 9:18:06 AM
Post# 48582
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=172654472&txt2find=leons