Ethema Health Corp (GRST)

[Bubae]

New podcast that everyone who is interested in this should pay attention to. Right out of the gate the presenter introduces Ethema Health as trading on the OTCQB market. Ethema Health (GRST) does not have a QB tier listing so that is absolutely false. About 1:30 into the podcast Shawn Leon says we're cash flow positive. Now maybe the Evernia treatment center held by American Treatment Holdings, Inc (AHTI) is cash positive but that is because Ethema Health (GRST) takes on all the debt and liabilities leaving the treatment center and its stakeholders clean. Q1 YOY year number for Ethema Health are below and they are not cash flow positive.

about 2.35 into the segment Shawn Leon claims as part of fund raising they did convert $2 million in debt to equity and now are going to raise $3 million instead of five million because the Kentucky plan was done with full financing. So converting $2 million of the Leon's debt to stock more than doubling the share count can't be considered fund raising since it doesn't bring any new funds into the company. What it does is suddenly give the Leons about 52% ownership of the OS.

9:50 starts talking about debt reduction look under December 31st 2023 we have $2,572,000 in related debt $2 million converted to debt as of a week ago. Why slowly decreasing the debt down to where they will qualify for the NYSE. Minimum $3 will be needed through a reverse split. Talks about related party debt but not the additional debt taken on that I talk about in post# 50341 with links to the information. So there is what Shawn says is a $3 minimum again needed for the NYSE and the reverse split. I don't see this NYSE up-list narrative as serious given their numbers but if it were serious they would need a much higher post split number than $3 if they are also to convert some of the offering.

At 11:00 in to the segment Shawn Leon starts talking about the current offering and the creation of a new series of convertible preferred shares. He says We have no convertible, we have no variable rate debt, then admits finally that they do have this small note that um.... Reality is as of March 31st they have a $124K Bauman note balance with an automatic conversion feature dated August 9th that Shawn Leon now claims will be settled without conversion. Shawn Leon says that he is creating a new series of convertible preferred shares. My guess is that this is where the balance of the more than $7 million in so called "friendly" debt that Shawn talked about in previous podcasts debt will be converted into. With that done Ethema Healh will no longer be sitting on bad debt owed to the Leons and the series "N" note holders buy rather they become stakeholders of the newly resurrected Ethema Health after a very healthy stock consolidation that will never affect the preferred shares. Life is good if you are in charge and can take care of your friends. 😆

24:30 talks about the current offering at $0.0012 and plans to get that price up and plans to not to raise any equity at prices lower going forward. I knew an amended offering would need to be done since the business has changed so much since the regulation "A" offering was last qualified in November 2023. What he is saying is that the number will be going up along with the stock consolidation. You can bet that the new price will be well blow the eventual trading price post split. That is how a reg A offering works folks. Those shares are exempt from registration and are immediately free trading. I would look for a stock consolidation before he drops the amended offering then massive new dilution post split to r5aise the badly needed funds.

Bottom line is that Shawn Leon is working the plan he laid out in the January podcast and current shareholders are about to get crushed from what I see. You have already been crushed by the more than 100% dilution and you apparently just don't realize it yet. If Shawn Leon isn't able to peak retail trading interest in this he is done. In the end it will be retail losses that will pay for badly needed cash flow supplement to support this very expensive business model.



Bubae
Re: None
Tuesday, July 02, 2024 9:04:04 PM
Post# 50341 of 50635
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=174697005


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

Revenues
Revenues were $1,300,100 and $1,300,046 for the three months ended March 31, 2024 and 2023, respectively, an increase of $54 or 0%.
Operating Expenses
Operating expenses were $1,529,175 and $1,225,020 for the three months ended March 31, 2024 and 2023, respectively, an increase of $304,155 or 24.2%. The increase is primarily due to the following:

Abbreviated list

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,...

Salaries and wages were $727,741 and $592,036 for the three months ended March 31, 2024 and 2023, respectively, an increase of $135,678 or 22.9%. The increase is due the increase in staff headcount during the current year.

Operating loss (income)
The operating loss was $(229,074) and operating income was $75,026 for the three months ended March 31, 2024 and 2023, respectively, an increase in loss of $304,100 or 405.3%.

Net loss
Net loss was $374,203 and $175,717 for the three months ended March 31, 2024 and 2023, respectively, an increase of $198,486 or 113.0%