Replies to post #48880 on Ethema Health Corp (GRST)

[Bubae]

Achievement!?!. Lets see, the Leons sell a Canadian clinic to Ethema Health (GRST) in 2017 for US$6 million. Ethema Health (GRST) then sells the clinic operation for something like CDN$13 million, best case, and retains the Canadian property which is leased to the new clinic owner.

What do they have to show for more than five years of business? The Cranberry Cove subsidiary with the Canadian property has been handed over to Leonite for debt. The proceeds brought to Florida from the deal are gone. $2.3 million of debt has now been converted into a terrible lease deal that included nearly $1 million in fees. There is more than $4 million in defaulted series "N" notes. The Leons are owed more than $3.8 million. There is $3.7 billion in outstanding shares that are nearly worthless. The stock is currently worthless to the company in terms of attracting capital or converting more debt. The Greenestone Muskoka and ARIA subsidiaries are worthless evidenced by the purchase by Shawn Leon for zero dollars at the end of 2022. If you distill out what the company owns of the treatment center after the options to secure debt Ethema Health (GRST) can't even claim a majority interest. So what are we talking about in terms of achievement?

"Interpretation & Opinions" it is Not Necessarily Knowledge" about Mr. Shawn Leon Positive Facts of Achievement!!!....

For the fiscal year ended: December 31, 2018
https://www.otcmarkets.com/filing/html?id=13362800&guid=ACg-k6TJbo3qmih

Item 1. Business.
Company History

On February 14, 2017, the Company completed a series of transactions (referred to collectively as the “Restructuring Transactions”), including a Share Purchase Agreement (the “SPA”) whereby the Company acquired 100% of the stock of Cranberry Cove Holdings Ltd. (“CCH”), which held the real estate on which the Company’s GreeneStone Muskoka operated,

The Share Purchase Agreement

Under the SPA, the Company acquired 100% of the stock of CCH from Leon Developments Ltd. (“Leon Developments”), a company wholly owned by Shawn E. Leon, who is the President, CEO, and CFO of the Company (“Mr. Leon”). CCH owns the real estate on which GreeneStone Muskoka is located. The total consideration paid by the Company was CDN$3,517,062, including the assumption of certain liabilities of CCH, which was funded by the assignment to Leon Developments of certain indebtedness owing to the Company in the amount of CDN$659,918, and the issuance of 60,000,000 shares of the Company’s common stock to Leon Developments, valued at US$0.0364 per share.


The Asset Purchase Agreement and Lease

Under the APA, the assets of GreeneStone Muskoka were sold by the Company, through its subsidiary, GreeneStone Muskoka, to Canadian Addiction Residential Treatment LP (the “Purchaser”), for a total consideration of CDN$10,000,000, plus an additional performance payment of up to CDN$3,000,000 to be received in 2019 if certain clinic performance metrics are met.

Through the APA, substantially all of the assets of GreeneStone Muskoka were sold, leaving Ethema with only the underlying clinic real estate, which the Company, through its newly acquired subsidiary, CCH concurrently leased to the Purchaser.


The Florida Purchases and Business

Immediately after closing on the sale of the assets of the Canadian Rehab Clinic, the Company closed on the acquisition of the business and real estate assets of Seastone Delray pursuant to certain real estate and asset purchase agreements. This business is operated through its wholly owned subsidiary, Addiction Recovery Institute of America, LLC (“ARIA”) (formerly Seastone Delray Healthcare, LLC). The purchase price for the ARIA assets was US$6,070,000 financed with a purchase money mortgage of US$3,000,000, and US$3,070,000 in cash.


For the fiscal year ended: December 31, 2022
https://www.otcmarkets.com/filing/html?id=13362800&guid=ACg-k6TJbo3qmih

18. Related party transactions
Shawn E. Leon

On December 30, 2022, the Company sold its wholly owned subsidiaries, Greenestone Muskoka and ARIA, to Mr. Leon for gross proceeds of $0. The Company realized a gain on disposal of $628,567 which was recorded as a credit to Additional Paid in Capital due to the related party nature of the transaction.