Well, I don't think he is stupid. 😆Still no comment on why he has said in three videos that he intends to, in his words, uplist soon, to the NYSE in 2024. Just apply the relevant facts and explain another scenario. My call is that he goes with the massive split then converts what he calls $7 million in "friendly debt" into convertible preferred shares. Likely series "B" whichis senior to all others for this stock. I calculated this friendly debt as $4,427,463 in series "N" notes and $2,660,190 in what is owed to the Leons for a total of $6,936,653,.
What they are able to do now is why they never put their so called "investment" into shares of the common. The plan in my view is the massive split under cover of the ridiculous NYSE uplist narrative then convert their debt into preferred shares of the new share structure. Suddenly we have a new story don't we? At that point Ethema Health doesn't have a $7 million debt problem on the books, what they have is a nice insider investment which shows how confident those with inside knowledge are of their business model. Right? This is what he did with the defaulted debt in 2023. That debt got wrapped up into the crazy property purchase, sale, leaseback deal, and is now called a lease liability and not debt on the books. I am very confident that it is coming and with the nasty short term debt in place I look for it well before the maturity of the 600K on November 15th.
Now your turn based on the facts, what is going on? Here is what you have to work with. Huge promotion in June for the highest volume in more than two years which was an obvious walk up. We have three interviews with Shawn Leon since the first of the year saying the he intends to up-list to the NYSE with a $3 minimum price comment. In all three he claims that the $7 million will be converted to stock. Since the January video he has borrowed a boat load of expensive short term new debt. According to the Q1 2024 filing the series "N" notes are no longer in default because they have a new maturity date of December 31st 2024. We see a large expenditure for professional fees citing expenses related to the regulation "A" offering in the Q1 filing and he talks about the offering in all three videos.
I don't believe that the promotional efforts and his comments in the videos that can be proven to be false was wise and is begging for a SEC complaint. However the comment he consistently uses in this videos that any consolidation and up-list would be "accretive" for current shareholders could be encouraging. In fact I can argue that the comment would be true in retrospect. First,"accretive" is defined as a "gradual or incremental growth". This is a word that isn't used often but it very useful here in a legal sense for plausible deniability post split. That is because the act of consolidating the stock in itself doesn't technically destroy shareholder value. Rather it is considered by definition to mean "...consolidation decreases the number of outstanding shares while increasing the price per share. The total market value of the company remains the same, and the value of each investor's holdings is also preserved".
Of course current shareholders will have their losses locked in and the effect of the consolidation news will drive it lower. Since the trading lows for 2024 were as low as $0.0002 you could say that is the trading loss basis for longs so the increase in price to recent highs was a gift provided by the promotion. So how much are you really losing given that basis and was it Shawn Leons fault that longs didn't cut their losses in the interim when he told you all what he was doing six months ago. Yes I believe Shawn Leon has revealed what he is actually doing in his communication for the year though in a very misleading and calculated way. Pretty clever strategy to pull his and his friends cookies out of the fire don't you think?
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