Replies to post #49335 on Ethema Health Corp (GRST)

[loanshark007]

You see, you're one of the reasons why folks like Bubae and I stick around these OTC slums. Some of us just simply don't care for misinformation and lies.

'

'He just simply borrows, and finds new ways to borrow and repack the debt.'' ... I assume the lender believe they will be paid back.

Yes, and handsomely. The last one, Leonite, got a sweet deal. They now own one of GRST's best revenue streams.

''To the point now that he had to personally guarantee the last $9 million deal'' ... Why would someone do that unless he seriously believes he can solve the debt issued?

It's actually the opposite of what you believe. GRST is a credit risk and he has no choice but to personally guarantee.

''He borrows for long periods followed by fits of dilution.'' ... He did not dilute us for a long time.

He has in the past and now he simply can't afford to dilute. He knows this would instantly drop to .0001 with dilution.

'' No real strategy for anything really he just reacts at a glacial pace.'' ... I assume he has a plan/strategy but I agree it takes him a long time to execute it ... whatever it is. If he was saying what it is, I'm sure you would find a way to say it is doom to fail. As an example he still mention regulation ''A '' and for sure you try to ridicule it without really knowing what his plan is (As you say: ''The guy takes FOREVER to do anything''). You also affirm that regulation ''A'' will not be viable. Leon however may be slow but HE believes it is. I assume he knows better than us.

Err how long has this open up a treatment center, close a treatment center charade been going on?
You're championing a regulation A? Are you really that clueless?

THE FACT IS YOU TAKE YOUR DREAMS FOR REALITY AND KNOW AS MUCH AS US ALL .

I'm sure he does know more than most here. HE READS THE FILINGS! You obviously don't bother with them or have not a clue what you're reading.

[Bubae]

It is a 20 year finance debt deal worth $19 million with the current $2.75% increase every year. Now add in the provision in the lease that ensures a true 2.75% with an adjustment linked to the consumer price index. This was such a good deal that the California underwriter set up a business entity in Florida just for this purpose. Leonite has been Ethema Health's (GRST) primary benefactor since the beginning in Florida. They have now taken two properties for debt and they have nearly completely divested themselves here. Ethema had to turn to this crazy deal because even the toxic lenders aren't interested.

The motivation is that the Leons would like some of their $3 million back that is still in this. Shawn Leon apparently believes that he can sell the shares necessary to eventually pay himself and the $4 million in defaulted series "N" notes. They borrow every quarter to limp this along so cash flow isn't paying any of the debt. That lease finance deal settled defaulted debt that was not being serviced, now it must pay on a monthly basis. Take that and the loss of the cash flow from the Canadian property and they have a bigger cash flow problem. To date with two previously closed treatment centers and the accumulation of the new debt after the 2021, 1.5 billion shares converted for debt, when has Shawn Leon used good judgement. The stock is still worthless to the company in terms of attracting capital or converting debt. This ticker is simply a one or two tick flip opportunity off of Shawn Leon's quarterly promotions and that even failed that for Q3.

''To the point now that he had to personally guarantee the last $9 million deal'' ... Why would someone do that unless he seriously believes he can solve the debt issued?

PONTUS EHC PALM BEACH, LLC
https://search.sunbiz.org/Inquiry/corporationsearch/SearchResultDetail?inquirytype=EntityName&directionType=ForwardList&searchNameOrder=PONTUSEHCPALMBEACH%20M230000094460&aggregateId=forl-m23000009446-238db13a-0142-4957-947b-fabff2f1dd0f&searchTerm=PONTO%20FINAL%20LIMITED%20LLC&listNameOrder=PONTUNESMARINA%20P090000971370

Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an O?-Balance Sheet Arrangement of a Registrant.

On August 4, 2023 the Company entered into a long term lease for 950 with an initial term of twenty years, and two ten year extension options. The lessor is Pontus EHC Palm Beach, LLC , a Delaware limited liability company and a portfolio company of Pontus Net Lease Advisors, LLC. The lease is absolutely net and the lease cost for the initial year is $748,000 paid monthly. The lease increases at a rate of [color=red]2.75% per year for a total term lease obligation of $19,595,653 over the initial twenty-year term[/color]. The Lease is personally guaranteed by the Company President and the guarantee may be released after 5 years based on certain financial and performance metrics being met. The lease is attached hereto as Exhibit 10.6.

[Bubae]

Does he put his "he puts his money where is mouth is." They have positioned their funds for recovery if possible. They paid down a chunk of that third part loan owed to Shawn Leon's wife in 2023. Together with those payments and the accrued management fees associated with the Canadian property the Leons recovered at least $546K in 2023. They are still owed a bit more than $3 million. It is a good thing that the Leons didn't take any of that in shares of the common or their potential recovery would be zero.

'Without the backing of his personal financial statement this company would be bankrupt.'' ... The least we can say is that he puts his money where is mouth is (and his mouth he doesn't use that much).

For the quarterly period ended September 30, 2023
https://www.otcmarkets.com/filing/html?id=17070521&guid=R7J-kWJTTD7-B3h

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. This loan was assumed by the Company on the disposal of CCH to Leonite Capital as disclosed in note 4 above.

During April and May 2023, the Company made ad-hoc repayments of CDN$25,000 (approximately $25,970) on the third party loan. Between August 9 and August 10, 2023, the Company made principal repayment of CDN$450,000 ($335,290) As of September 30, 2023 the balance of principal and interest outstanding on third party loans was CDN$336,320 ($248,757).

14. Related party payables
Leon Developments, Ltd.

Leon Developments, Ltd.

Leon Developments is owned by Shawn Leon, the Company’s CEO and director. As of September 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 nine months ended September 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.