Ethema Health Corp (GRST)

[Bubae]

You are true and loyal Kool Aide drinker Paul. This stock is about the insiders trying to dig themselves out. This failed a year ago when the Leons had to personally guarantee the crazy property purchase, sale, lease back deal. The terms for getting themselves out from under that $9 million liability can be found in the write up in post #51299. Now Eileen Greene, the spouse of Shawn Leon, had to kick in another $250K in Q3 to keep the wheels on this.

The other insiders that Shawn Leon talked about in the January podcast are the holders of the series "N" and "R" notes totaling almost $5 million. Shawn Leon described these people as advisers who will at some point be converting that debt to equity. These note holders and the Leons are the real owners of this mess from what I see. What they need is for the future traders of this stock to pay that crushing debt so they can cash out at some point. These people should have lost their investment long ago but they weren't dumb enough to buy shares of the common. This operates more like a private company who fleeces traders of its stock to pay the ongoing losses.

Next up according to Shawn Leon is the split and the dilution from the offering. The Leons already diluted this more than 100% in July with their conversions so now you all can now experience double the split ratio over what would have been needed previously. That massive dilution of your shares also attenuates the influence of your selling post split. Bottom line is that you all who hold this stock do not matter any more.


Bubae
Re: pual post# 51295
Saturday, October 12, 2024 7:39:34 AM
Post# 51299 of 51449
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=175219655&txt2find=failed

Ethema Health was bankrupt and done in 2023 Paul. I was absolutely correct that the business was bankrupt. The Leons had to personally guarantee the the crazy property purchase, sale, leaseback deal of August 2023 to bail it out. They refinanced that $2.3 million in mostly defaulted debt into a lease liability of more than $9 million, more than $19 million over the 20 year term. Leonite held a note that refinanced defaulted debt the previous year secured by all assets of ATHI the holding company for the treatment centers and Ethema Health which finally forced their hand. Now Shawn Leon has so badly fumbled the regulation "A" offering and taken out a couple of more million in debt in 2024 that he claims to be trying another property purchase, sale, leaseback deal with the Edgewater properties. Think the Leons have enough on their personal ledger to underwrite another disaster? 😆

Bubae
Re: sylvia07 post# 51307
Monday, October 14, 2024 10:48:34 AM
Post# 51308 of 51449
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=175225972&txt2find=leons%2Bconversions

Lets break down what you call Shawn Leon' "good money" Looks like the Leons needed to acquire more than 50% of Ethema Health for voting control because they need to make some moves here to protect what they call "friendly debt" held by themselves and these series "N" and now "R" note holders. So Shawn Leon takes the debt owed to him and Leon Developments by the company and writes himself a Regulation "D" offering for $1.5 million. Where did this debt owed to Shawn Leon come from? He is claiming the $420K is accrued management fees citing an agreement with Addiction Recovery of America (ARIA) which Shawn Leon took for himself in December 2022 for $0. In the 2023 deal to hand over Cranberry Cove, the holding company for the Canadian to Leonite for debt owed Shawn Leon was awarded "approximately $185,503" in so called accrued management fees. That is $605,503 in management fees. Yet what we see owed to Leon Developments jumped $242K from the end of 2022 to the end of Q2 2023. The balance of the debt owed to Leon Development comes from the sale of assets to Ethema Health by Leon Developments back in 2017.