Ethema Health Corp (GRST)

[Bubae]

If you pay attention to the details the company is signaling what is to come from what I see. When they talk about partners they are likely trying to duplicate the current treatment center model. Ethema Health (GRST) claims to own 75% of the current treatment center but the bulk of that ownership is tied up in options for direct shares of the treatment center to secure notes which have not been paid. The treatment center has its own share structure and expect the same with the next venture as well. The role of Ethema Health (GRST) shareholders is to support the real investors. They will raise funds by diluting Ethema Health (GRST) stock, not that of the treatment center shareholders.

They talk about up-listing in the press release last week. that will at a minimum require that this stock "...must have a minimum bid price of $0.01 per share as of the close of each business day for each of the previous thirty calendar days prior to its application date." The July 2023 press release the CEO states that plans to consolidate the stock would come with an up-list attempt.

The regulation "A" amendment filed April 2023 changed the share pricing from $0.0012 a share to units of 100 priced at $0.12. I posted at that time my belief that the post split per share would likely be $0.12 which is essentially equivalent to units of 100 priced at $0.0012 so no need to requalify the filing. Now consider that the regulation "A" will need room to work and those who subscribe will likely get those shares at a 50% discount to market. Also, Ethema Health wants to up-list so they need to keep the price above a penny. I have been saying this for a while, I would expect a 1:2400 reverse split to get the price up to $0.024 after the reverse split announcement drives the price to $0.0001. Everyone will know that the dilution will follow so $.0001 is no longer the bottom.

FORM 1-A
https://www.otcmarkets.com/filing/html?id=16555511&guid=Dgd-kn0Vr9UsX0h

Ethema Health Corporation, a Colorado corporation (the “Company,” “Ethema,” “we,” “us,” and “our”), is offering up to 4,166,666,660 shares (“Shares”) of its common stock, par value of $0.01 per share (“Common Stock”) sold in Units of 100 Shares of Common Stock (“Units”) on a “best efforts” basis without any minimum offering amount pursuant to Regulation A promulgated under the Securities Act of 1933, as amended (the “Securities Act”), for Tier 2 offerings (the “Offering”). We expect that the fixed initial public offering price per Unit will be $0.12 (equivalent of per share of Common Stock will be $0.0012)

Ethema to Present an Update at the Emerging Growth Conference on February 8, 2024
February 06, 2024 08:00 ET
https://www.globenewswire.com/en/news-release/2024/02/06/2824259/0/en/Ethema-to-Present-an-Update-at-the-Emerging-Growth-Conference-on-February-8-2024.html
At these meetings, there was unanimous support for the Company’s growth plans supported by financing and up-listing. The Company hopes to identify which partners it will go forward with for the financing and up-listing in the coming weeks.


Ethema Executes Two Real Estate Transactions and Major Debt Repayment
July 17, 2023 09:34 ET
https://www.globenewswire.com/en/news-release/2023/07/17/2705721/0/en/Ethema-Executes-Two-Real-Estate-Transactions-and-Major-Debt-Repayment.html

The Company will emerge from this transaction with a greatly streamlined cap table, an improved balance sheet, and a new focus on an “asset light” business model.

” Mr. Leon further added, “I have been questioned often about what our plans are to consolidate the stock and I can report that there are no near term plans to do so. I can only see that happening in conjunction with an up-listing when that time comes, and I believe it will come,