Ethema Health Corp (GRST)

[Bubae]

No, No, You know what I'm talking about. LOL What is filed with the SEC each quarter betrays the spin Shawn puts out in the press releases. A good example is Shawn's July 2022 press release announcing the nasty Leonite note to settle the defaulted Labrys notes. Shawn's statement boasting "...steadily increasing cash flow and should generate enough to repay the note in full prior to maturity." That was a BS statement because not only did they not pay on that note for the nine months to maturity they didn't even pay on the two much smaller that matured in April and June 2022. They didn't settle those notes until they did this desperate and very expensive purchase, sale, lease back deal. With the penalties, default interest and monitoring fees those two notes for net proceeds of $161K ended up costing nearly $414K. Shawn Leon had to have known at that time that there was no way in he77 the company was going to pay the $745K Leonite note from cash flow. Now lets add in the quarterly borrowing that they were doing through the receivables funding.

''Those promos that Shawn puts out every quarter'' ... I tought they were financials duly filed on SEC.

Ethema Files 8K on Debt Restructure
July 22, 2022 15:09
https://www.globenewswire.com/en/news-release/2022/07/22/2484639/0/en/Ethema-Files-8K-on-Debt-Restructure.html

Mr. Shawn Leon, Company CEO, reported, “We worked collaboratively with one of our long term investors to purchase the expiring notes from Labrys Fund and convert them into a new extended term note. This will enable the Company more time to generate cash flow for repayment of the debt. The Company’s ARIA subsidiary is steadily increasing cash flow and should generate enough to repay the note in full prior to maturity.”


9. 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. On August 4, 2023, the Company settled all outstanding liabilities owing to Leonite Capital and Leonite fund I, L.P. for gross proceeds of $1,449,000, see note 19 below.

The balance outstanding on the note, including default penalty, interest accrued and monthly monitoring fees is $255,170 as of June 30, 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. On August 4, 2023, the Company settled all outstanding liabilities owing to Leonite Capital and Leonite fund I, L.P. for gross proceeds of $1,449,000, see note 19 below.

The balance outstanding on the note, including default penalty, interest accrued and monthly monitoring fees is $158,576 as of June 30, 2023.