Ethema Health Corp (GRST)

[Bubae]

Here is a link to the press release Janet. Looks like you omitted it? My post# 50891 details their real estate ownership experience with links to the filings. These "smooth operators" should really avoid real estate transactions from what I see. 😆 Go to about 29:30 into the January podcast linked below and Shawn Leon starts talking about real estate ventures.

At 29:29 in he states "...we decided that we would no longer be owners of the real estate we will always be leasers of the real estate..." Looks like another purchase, sale, leaseback deal where Ethema Health buys the property plus extra cash to operate with others end up owning the property.

At 30:00 in he says"...we got hurt pretty bad trying to buy that one big facility in in West Palm Beach..." Yeah, they got hurt badly, might say they got crushed. 😆 But no worries now, they are going to do an off balance sheet deal where not only will the investors make money but Ethema Health will reap 50% of the benefit? Makes sense right? Just another scheme to refinance once again with new debt to keep this limping along.

The problem is that they need cash flow to make it work and it isn't coming from the operations. That 2023 property, purchase sale leaseback deal swung a cash positive balance sheet to a decisively cash negative operation beginning in Q1 of this year. Now they have the cash burn from the Boca operation to support. The regulation "A" offering has thus far failed AGAIN because retail traders are standing down so where does the cash come from?

Ethema Receives License for its Boca Raton facility
News provided by Ethema Health Corporation Aug 07, 2024, 10:48 ET
https://www.prnewswire.com/news-releases/ethema-receives-license-for-its-boca-raton-facility-302216798.html

With the large amount of real estate involved in the Kentucky locations, and given the Company's various real estate ownership in the past, the Company is now considering setting up a separate Real Estate Fund which would be financed outside of the Company while still allowing the Company to share in the upside of the appreciating value and development potential of the real estate. The real estate would not be carried on the Company balance sheet and no investment would be made by the Company in the real estate. The Company would still manage the real estate and have a 50% interest in the appreciating value of the real estate over and above its acquisition cost.

Bubae
Re: None
Wednesday, August 07, 2024 5:17:39 PM
Post# 50891 of 51149
https://www.prnewswire.com/news-releases/ethema-receives-license-for-its-boca-raton-facility-302216798.html

That statement about real estate is classic Ethema Health misinformation. Ethema Health (GRST) acquires the Canadian property from Shawn Leon in 2017 and handed that over to Leonie for debt in 2023. The proceeds from the sale of the Canadian clinic was brought to Florida with the Delray Beach property purchase. The Delray Beach property was handed over to Leonite to settle debt in 2019. Then Ethema Health closes its only treatment center at 5400 East Avenue in West Palm Beach and left nearly $3 million in a non-refundable deposit on that property purchase agreement. Then Ethema Health originally tried to purchase the property at 950 Evernia street, the home of the current Evernia treatment center. That turned into a property, purchase, sale, leaseback scheme to roll what was $2.3 million in mostly defaulted debt into a more than $9 million operating lease liability. They will purchase that property over the 20 year, more than $19 million deal, but will never own it. Real estate tycoons they are not. 😆