Replies to post #47092 on Ethema Health Corp (GRST)

[Bubae]

The original regulation "A" filing was October 14th 2022, almost 8 months ago. Normally a regulation "A" offering follows a reverse split with an offering price at roughly 50% of market. Those who buy into a regulation "A" offering don't hold those shares hoping that the price produces a profit. They immediately dump each tranche to take advantage of the spread. One would have to believe that this company is going to more than double the current share count at 3 times the current market price with this treatment center narrative in a market with very weak liquidity. It has been eight months and it could be that this offering for debt retirement may never be viable even with a reverse split.


The SEC is widening its war on toxic funders
Published on August 24, 2021
https://www.linkedin.com/pulse/sec-widening-its-war-toxic-funders-steve-taylor/

...it also increasingly utilized qualified Reg A offerings to acquire free-trading stock which they then dumped into the market without disclosure....

...This was a significant concern, as Reg A shares are immediately free-trading. That makes it much more attractive to many investors compared to restricted securities sold under Reg D exemptions, but it also is definitely more attractive to those looking to make a quick buck by breaking the law. This case demonstrates the SEC may not have been looking hard enough at the Reg A market for fraud, as certain financiers and funders have been scalping stock without disclosure in the filings....

...Section 17(b) of the Securities Act of 1933 requires anyone that is paid to promote a stock must disclose the amount of the payment and who paid them. This is probably the most violated SEC regulation, which is not a surprise as it is also the least enforced. Toxic funders routinely pay promoters to pump the stocks in which they are funding. ...

...To make money on their toxic convertible loan, these funders require volume to dump into. Lots of volume, because they have a lot of stock to sell. Thus the need for lots of promoters, most of whom are non-disclosing as telling the public they are getting paid to pump, and who paid them to do it, would scare even the most die-hard penny plunger away....