
Tuesday, July 02, 2024 9:04:04 PM
This time last year the company refinanced $2.3 million of mostly defaulted debt into a refinance operating lease deal representing a current liability of more than $9 million. This deal required personal guarantee contracts by both Shawn Leon and his wife Eileen Greene. Last year they were paying nothing on that defaulted debt and this year in the Q1 we see that they must pay on it now. Looking at a Q1 2024 cash burn increase of $150K a quarter just for the new rent expense alone.
After the lease refinance deal of 2023 the company immediately started adding more debt. Bauman note August 9th 2023, Mirage Realty note November 15th 2023. The balance on the Bauman note as of March 31st 2024 was $124,769 and can convert at any time with an automatic conversion feature date of August 9th. The third third extension on the $250K Mirage Realty note expired on June 15th.
Revolving credit line of $1 million dated February 1st limited to 80% of receivables. They define receivables in the agreement that can be found in the 8K filed February 7th. They could have this line tapped out? On page 9 of the Q1 2024 filing we see the statement "...The Company’s receivables were $356,929 and $313,338 at March 31, 2024 and December 31, 2023, respectively..." They executed draws in May totaling total of $450K on the credit line. This credit line includes fees with each draw and earns interest at 60% APR. Credit line is "...secured by all assets, tangible and intangible of the Company..."
$1.2 million in new bridge loans, one of which dated May 15, 2024 for $600K matures November 15th 2024.This note has some nasty default terms including converting into shares of the Evernia Treatment center held by ATHI for essentially the 25% they just claimed to have purchased for $1.1 million.
They have just finalized the Boca deal and according to the May 17th press release they had $300K lined up for this. We won't know the terms and where that money came from until we see the Q2 but judging from the other finance deals so far for 2024... 🙄
Ethema Health has had Series N convertible notes in default since 2022. The chart on page 16 of the Q1 2024 filing shows an outstanding balance of $4,276,463. There is a note on page 17 about a new agreement extending the maturity dates to December 31, 2024. What is the plan for the rest of the year to deal with this you might wonder.
Page 24 of the Q1 2024 filing we see a newly created group of "Series R Senior secured promissory notes" introduced. It is a pretty convolutes section describing series "N" note exchanges and accrued interest of those notes being paid from proceeds. This section appears to represent the other half of the $1.2 million in bridge loans.
This is my list supported by the links to the filings but it likely doesn't represent all the new debt. Just what I have been able to dig up. Shawn Leon has been busy lining up some expensive short term patch loans. Now what? How long can he go on without the benefit of raising cash from the equity represented by the Ethema Health (GRST) Share structure?
Bubae
Re: Penny Stocks 2.0 post# 50234
Saturday, June 29, 2024 7:29:14 PM
Post# 50236 of 50339
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=174680928&txt2find=net%2Bloss
Rent expense was $265,132 and $114,564 for the three months ended March 31, 2024 and 2023, respectively, an increase of $150,568 or 131.4%.The increase is primarily due to an increase in rental which arose on the acquisition of the building from our landlord and the immediate disposal of the building to a third party on August 4, 2023,...
Re: Think1st post# 50209
Friday, June 28, 2024 7:44:10 PM
Post# 50216 of 50340
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=174677602
The balance on the Bauman note as of March 31st was $124,769 and can convert at any time and the third extension on the $250K Mirage Realty note was June 15th.
Re: None
Friday, June 07, 2024 9:07:49 PM
Post# 49945 of 50339
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=174565220
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.
The revolving credit line is secured by all assets, tangible and intangible of the Company and its direct and indirect subsidiaries, American Treatment Holdings, Inc. and Evernia Health Center, LLC.
Re: None
Sunday, June 16, 2024 2:43:59 PM
Post# 50049 of 50340
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=174608088
...gross proceeds of $600,000, maturing on November 15, 2024...
...default interest at a maximum of 24% per month...
...The Senior Note, upon an event of default, may be converted into shares of ATHI at the rate of 1% of ATHI for each $24,000 of indebtedness, capped at $633,000...
NewMediaWire
Fri, May 17, 2024
https://finance.yahoo.com/news/ethema-acquires-25-minority-stake-134910442.html
The Company has raised $1,200,000 in bridge loan funding to date and lined up an additional $300,000 to fund the expansion into the Boca Raton location when that is finalized.
https://www.sec.gov/ix?doc=/Archives/edgar/data/0000792935/000190359624000371/grst_10q.htm
Page 17
Series N convertible notes
The maturity dates of the Series N convertible notes were extended to December 31, 2024, with the exception of 5 series N convertible notes issued to one investor with an aggregate principal outstanding of $1,273,000, which was extended to December 31, 2025. No consideration was provided to the investors for the maturity date extensions.
Page 24
17. Subsequent events
Series R Senior secured promissory notes
The company entered into the Series R senior secured promissory notes (“Series R Notes”), as detailed below,...

Everything that I post is just my informed opinion and is simply an invitation to debate. Trade on your own due diligence please..
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