Ethema Health Corp (GRST)

[Bubae]

This facility is built out. The desperate property purchase, sale, leaseback refinance scheme that Shawn Leon promoted as profit retiring debt last summer has resulted in new demand on their monthly cash flow. That defaulted debt that was refinanced in the lease scheme was not being serviced previously and now must be on a monthly schedule. They handed over their best performing asset in the Canadian property to Leonite for debt so that cash flow is gone. They are piling the debt back on again to patch themselves through to the regulation "A" offering proceeds. The stock has been worthless to the company in terms of attracting capital and debt conversions. It will be very difficult to fix this and is likely why the offering still hasn't gotten any traction after more than a year. We still have a couple of months yet before we see another filing to see how much more debt they have had to take on to keep the wheels on.

Bubae
Re: None
Sunday, November 26, 2023 5:35:15 AM
Post# 49291 of 49611
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=173295585&txt2find=options

Even after acquiring the cash from the crazy lease finance deal to pay a bit more than $2 million on the defaulted debt they still borrowed an additional $720K in Q3 and up to November 15th. They boasted about retiring the convertible notes in the July 17th press release and then turn right around and write a new one for $150K on August 9th. That note is available to convert at 6 months, as soon as February. They lost the Canadian property cash flow to Leonite for debt and now must pay on the new lease deal monthly. Looks like Shawn Leon will very quickly add back that debt and more. Cash balance at the end of Q3 after all of that activity was only $11,728. The cash burn rate appears to be very high and they have a ton of work to do to make that regulation "A" offering viable. What cash flow the treatment center throws off is discounted because of the expensive receivables funding that is servicing the previous receivables funding. Balance on the receivables funding as of September 30th was $425,467 after retiring $267,771 in receivables funding using proceeds from the finance lease deal. An expensive way to operate.