Ethema Health Corp (GRST)

[Bubae]

The Leons are owed $2.6 million and the only way they can get that out is to convert to equity. As a practical matter converting to the common presplit doesn't help the price but rather hurts it with the increased outstanding share count. Converting to common would be stupid even for the Leons unless they can use the tax loss credit. Most likely they convert to convertible preferred shares which would be nice in a post split world after they unload the debt on retail through sales of the common. Again how could they convert debt to equity and help the price other than by perception to dupe retail into buying the common. The NYSE uplist narrative is simply stupid in my opinion. They would need a healthy slit to support the regulation "A" offering and a simple OTCQB up-list.

The last time they had the QB certification was in 2019 and the share float was 41,759,371. Look at the shares the Leons held relative to the outstanding share count in the QB certification document. As of March 31st 2019 the outstanding share count was 124,371,452. The OTCQB certification document for May 2019 shows the Leons held 80,389,234 shares. How that is broken down in terms of the preferred I have not look at completely but I see 4 million shares of series A preferred held by the CEO's wife in the 2019 Q1. Now consider the post split Ethema Health share structure and the Leons converting $2.6 million to equity. Do a second split and they could pretty much own it with the ownership of the preferreds. 😆 But they need to do something about the debt or they own nothing in reality. That is where retail and the sales of common stock comes in.


For the quarterly period ended March 31, 2019
https://www.sec.gov/Archives/edgar/data/792935/000172186819000268/f2sethema_10q.htm

15. Stockholders’ deficit

a) Common shares
Authorized, issued and outstanding

The Company has authorized 500,000,000 shares with a par value of $0.01 per share. The company has issued and outstanding 124,371,452 and 124,300,341 as of March 31, 2019 and December 31, 2018, respectively.

2019 OTCQB Certification
https://www.otcmarkets.com/otcapi/company/financial-report/219622/content

Number of shares in the Public Float: 41,759,371 as of May 13, 2019

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