Ethema Health Corp (GRST)

[Bubae]

Took another look at that Mirage Realty note. I can't find the actual note filed but it doesn't look to be a convertible note. Explains why they keep pushing the maturity out a month at a time. Make you wonder how they intend to pay it and why another 30 days matters. The new maturity date according to the chart on page 17 is June 15th. The accrued amount due as of March 31st is $259,514. They needed to draw $450K from the very expensive credit line in May so they are spending like drunken sailors on leave while they have notes that have matured. The balance on the Bauman note as of March 31st was $124,769 and can convert at any time.


Bubae
Re: None
Friday, June 07, 2024 9:07:49 PM
Post# 49945 of 50024
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=174565220&txt2find=credit%2Bline

All one needs to do is look at the use of the revolving credit line to see the cash flow stress that the company is experiencing. The company took a draw on February 1st after they secured the credit line and according to the subsequent events section of the filing they repaid $186,120 of principal and interest in April and May. According to the chart on page 17 of the quarterly the company took three draws on May 1st, 12th, and 14th totaling $320K. Then again in the subsequent events section we see another draw of $130,000 on May 15th for a total of $450K drawn on the credit line in May....

For the quarterly period ended March 31, 2024
https://www.sec.gov/ix?doc=/Archives/edgar/data/0000792935/000190359624000371/grst_10q.htm


Page 17
8. Short-term Convertible Notes (continued)
Joshua Bauman

On August 9, 2023, the Company issued a convertible promissory note to Bauman, in the aggregate principal amount of $150,000. The note bears interest at 10.0% per annum and matures on August 9, 2024. The note is convertible into shares of common stock at a conversion price at the option of the holder at $0.001 per share, adjusted for anti-dilution provisions. The note is convertible into common stock at the option of the holder after the expiration of six months from the issuance date, in addition, should the note reach its maturity date, August 9, 2024, the note will automatically convert into shares of common stock at the conversion price, subject to anti-dilution provisions.


Page 18
9. Short-term Notes (continued)

Mirage Realty, LLC

On November 15, 2023, the Company, entered into a senior secured promissory note in the aggregate principal amount of $250,000 for net proceeds of $223,500 after an original issue discount and fees of $26,500. The note earns interest at 10% per annum and originally matured on March 15, 2024. The maturity date was extended to April 15, 2024, with no change to the terms of the note or any additional consideration paid to the noteholder.