Replies to post #48573 on Ethema Health Corp (GRST)

[LOVE*PINK]

Huzzah! CEO Shawn just paid $1.5 M CASH to close out other CDs.

He will take care of this also.

$GRST.

[janetcanada]

GRST - The Company is considering its options to settle these notes.- It is giving us a Hint.....Could be that Mr. Shawn Leon might go ahead and "Settle these Note"???.....

[declaes]

As far as I see, GRST had 14million of debt including preferred shares. This debt is down to about 6.5 million.
But imo you can cal this friendly debt of witch 3 million is owned to Mr. Leon himself...
I'm sure they will get out of this.

$GRST

[Bubae]

Yes, the outstanding balance on the series "N" notes as of June 30th 2023 is $4,137,244. That number is the original $3,229,000 including the accrued interest. Ethema Helath (GRST) doesn't pay to service their notes because they can't. All of the notes and preferred shares rolled into this new lease deal had accrued interest, dividends or other fees. A best estimate of what the Leon's are owed according to this filing is $3,811,167. This number does not include the four million series "A" preferred shares that Eileen Greene, the spouse of the CEO owns. We can see why Shawn was so desperate to do this expensive leaseback deal. Leonite was holding their feet to the fire with their own defaulted notes.

Thoughts on the over $3M Series N notes in default?

For the quarterly period ended June 30, 2023
https://www.otcmarkets.com/filing/html?id=16878947&guid=kvN-kHadOtVaJth

Series N convertible notes

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 from accredited investors through the issuance to the investors of the Company’s Series N convertible notes,

The series N convertible notes matured and are in default. The Company is considering its options to settle these notes.

13. Third Party loans

On April 12, 2019, Eileen Greene, a related party, assigned CDN$1,000,000 of the amount owed by the Company to her, to a third party. The loan bears interest at 12% per annum which the Company agreed to pay

During April and May 2023, the Company made ad-hoc repayments of CDN$25,000 (approximately $25,970) on the third party loan. As of June 30, 2023 the balance of principal and interest outstanding on third party loans was CDN$779,005 ($588,372).

14. Related party transactions

Shawn E. Leon
As of June 30, 2023 and December 31, 2022, the Company had a payable to Shawn Leon of $365,126 and $411,611,...

Leon Developments, Ltd.

Leon Developments is owned by Shawn Leon, the Company’s CEO and director. As of June 30, 2023 and December 31, 2022, the Company owed Leon Developments, Ltd., $1,092,701 and $850,607, respectively.

The Company paid Leon Developments a management fee of CDN$250,000 (approximately $185,503) and $0 for the six months ended June 30, 2023 and 2022, respectively.

On June 30, 2023, the Company assumed the liability owing to Leon developments of CDN$1,974,012 (approximately $1,490,946) from its subsidiary, CCH, immediately prior to the disposal of CCH to a related party, Leonite Capital LLC.

Eileen Greene

As of June 30, 2023 and December 31, 2022, the Company owed Eileen Greene, the spouse of our CEO, Shawn Leon, $1,366,723 and $1,451,610, respectively. The amount owed to Ms. Greene is non-interest bearing and has no fixed repayment terms.