Replies to post #45834 on Ethema Health Corp (GRST)

[N-13]

Ok sure. The debt was a problem in the past, what about today, when will it be paid off? Obviously the market is not very confident with this stock, I am not the only one.
If GRST can get to .0015 I will buy a boatload of shares, but doubtful it will happen, may not get out of the trips unless someithing significant happens here.

[Bubae]

It is clear that they are not paying the interest on many of their notes. The original $3.2 million in series "N" notes was right at $4 million September 30th 2022. Been growing for years with 6% interest. The status of those notes changed to default as of June 30th 2022 quarterly filing.

The variable rate $745K June 1st Leonite note balance has grown to $772K as of September 30th. The 2 snapshots below, keep in mind that the note had a $150K OID added. That note matures March 1st with default interest of 24% that will be calculated back to day one of the note.

The Leonite note that was reduced by the 150 million shares converted March 1st 2022 had a balance of $173,052 for the period ended March 30th 2020. That balance as of September 30th earning 12% interest grew to $180,836. That is but a few.

The statement you make by saying GRST is not able to pay off the interest on the notes is just false. You have to be more careful with saying these things.

For the quarterly period ended June 30, 2022
https://www.otcmarkets.com/filing/html?id=16018411&guid=di7-kal6YPa7B3h


For the quarterly period ended September 30, 2022
https://www.otcmarkets.com/filing/html?id=16200583&guid=di7-kal6YPa7B3h




Original Issue Discount Debt (OID) Tutorial
https://breakingintowallstreet.com/kb/debt-equity/original-issue-discount-debt/

THE SHORT ANSWER:
Concept: OID comes up when a company issues Debt at a discount to par value. For example, a bond is worth $100 (the “face value” that the company pays interest on), but the company issues it for $90.

A company might do this, or have to do this, because:

>The bond’s coupon rate (interest rate) is below the rates of other, similar bonds, and the company needs to incentivize investors to buy it even though the investors could earn higher interest elsewhere.

>Investors have doubts about the company’s credit quality and ability to eventually repay the bond upon maturity (or to refinance and replace it with another bond).

[Bubae]

You tell a poster that "You have to be more careful with saying these things" Your post was full of statements that are completely indefensible.

The CEO gaslights traders with the EBITDA number suggesting that the growing number represents profitability when it in fact is fueled by the growing debt.

The debt was a problem? They exchanged the $596K Labrys partially defaulted debt June for the $745K Leonite June note who's terms are very ugly including being secured by the remaining assets of the company. Additionally they have more than $4 million in debt defaults with the June Leonite note maturing March 1st.

You are projecting $8 million in revenue for 2023 for this built out facility? Pure whole cloth conjecture! The CEO doesn't even promote revenue growth. He stated that the focus will be growing that EBITDA number for 2023 in the Q3 press release.. A hugely growing EBITDA number will be a fact for 2023 with the ever growing interest expense line item.

a 30-35% ebitda...

This with 8,000,000 revenues for 2023

Debt was a serious problem...

But the play here is the debt story. Is debt under control or not. And if you look into the fillings, it looks like it is.

The statement you make by saying GRST is not able to pay off the interest on the notes is just false. You have to be more careful with saying these things.