One step at a time in my opinion. We are getting a peek behind the curtain with the notes now in default and the crazy June note with the $150K penalty, variable rate interest, 24% default penalty and is secured by all assets of the company.
Leonite solidified its claim with the $745K June note due in 6 months. In addition there is $700K in convertible preferred shares of Cranberry Cove which holds the Canadian property, $400K in Ethema (GRST) series "B" preferred shares which is senior to all others, and other senior secured debt. They have debt waiting to convert at .001 so maybe they try to get some of that done in the next 6 months... but looks unlikely.
The other stake holders need to catch up and make their claims as well because this appears to finally be unraveling. The original $3.2 million in series "N" notes is now $3.9 million. It would appear that the interest has been rolled over into the notes.
So what do you think? do the fix the share structure and try to get some direct offering done? Toxic financing of the past is no longer because of the rule changes late last year. Is there any equity left to offer a potential lender? It would appear to me that they have few options and the pressure is really building now.
Between January 28, 2019 and June 11, 2020, the Company closed several tranches of Series N Convertible notes in which it raised $3,229,000 in principal...
The series N convertible notes matured and are in default. The Company is considering its options to settle these notes.
LXR Biotech
On April 12, 2019, the Company, entered into a secured Promissory Note in the aggregate principal amount of CDN$133,130. The Note had a maturity date of April 11, 2020...
This note has not been repaid, is in default and remains outstanding.
Ed Blasiak
On September 14, 2020, the Company entered into a Securities Purchase Agreement with Ed Blasiak (“Blasiak”), pursuant to which the Company issued a senior secured convertible promissory note in the aggregate principal amount of $55,000...
The note has matured and is in default, Ed Blasiak has not declared a default under the note and we are in communication with Mr. Blasiak on our ability to repay the note.
Leonite Capital, LLC
Secured Promissory Notes
On March 1, 2022, the Company entered into a secured Promissory Note in the aggregate principal amount of $124,000 for net proceeds of $100,000 after an original issue discount of $24,000. The Note had a maturity date of April 1, 2022. This note has not been repaid at the date of this report and no default has been declared.
On May 3, 2022, the Company, entered into a secured Promissory Note in the aggregate principal amount of $76,250 for net proceeds of $61,000 after an original issue discount of $15,250. The Note had a maturity date of June 17, 2022 and bears interest at the rate of zero percent per annum from the date on which the Note was issued until the same became due and payable.
We are in discussions with Leonite on the repayment of these notes.
14. Receivables Funding
On May 31, 2022 the Company, through its 75% held subsidiary, Evernia Health Center, LLC entered into a Receivables Sale Agreement with Itria Ventures LLC (“Itria”), whereby $240,000...
Liquidity and Capital Resources
Cash generated from operating activities was $246,940 and cash used in operating activities was $(383,358) for the six months ended June 30, 2022 and 2021, respectively,...
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