Ethema Health Corp (GRST)

[declaes]

So let's take a closer look at one of your misinformations... (Lies)

You say 24% intrest per month - what you don't say is "subject to the Usury Act"

Looking to see how much the lender is now making off that Mirage note that according to the filing earns 24% a month in default interest. That note is secured by 25% of the Ethema Treatment Center. The very same 25% that Shawn Leon agreed to pay $1.1 million for last year. Losing that 25% isn't much of a threat however because the treatment center is a loser so why take it? I would just let the note fester and wait for the cash from an eventual offering. With the compounding monthly interest that note could be worth $1.5 million now. Shawn Leon every year since I have been following this has had notes in default so he has it down pat now. Have to admit that it takes a special kind of stupid to cultivate that kind of penalty on a loan.

Let's see...

From GRST's 10-Q (March 31, 2024):

...bearing interest at 6% per annum for the first two months, 9% per annum for the following two months, and 18% per annum for the last two months. The note also provides for default interest at a maximum of 24% per month, subject to the Usury Act.

So here's what GRST actually pays:
Period Duration Interest Rate (Annualized) Legally Enforceable?
Months 1–2 2 months 6% per annum Yes
Months 3–4 2 months 9% per annum Yes
Months 5–6 2 months 18% per annum Yes

These rates are standard and not usurious. The note is not currently in default, so the 24% figure does not apply.

What about that “24% per month” clause?
That part is just a default penalty provision.
However:

Florida’s usury law caps interest at 18% annually on loans under $500,000, and 25% annually on loans over $500,000 (this note is $600K).

Therefore, 24% per month (288% annually) is completely unenforceable under Florida law.

So, even if GRST defaulted, the maximum default rate would be 25% annually — and only if enforced by a court.

Bottom line:
GRST is paying between 6%–18% annually depending on the term phase — all within normal ranges for private secured debt in the small-cap world.
The 24% monthly number is a red herring and cannot be enforced under state law.

But thank you for keeping the PPS low with your bullshit!