Replies to post #50825 on Ethema Health Corp (GRST)

[Bubae]

Yes, Shawn Leon is doing well for himself with these deals. He was paid $185,503 in management fees as part of the Canadian property for debt exchange in 2023. I also like the way Ethema Health (GRST) assumed the $1,490,946 in liability from Cranberry Cove Holdings, the holding company for the Canadian property. Now Shawn Leon is claiming $420,000 in accrued management fees which he converted to common stock on July 12th which helped the Leons obtain controlling interest in this company.

This relationship is quite different that being a debt holder. The same will pertain to the more than $4 million that Shawn Leon claims is "friendly debt" will be converted to equity. These people who once held debt that I would call hopeless are now turning it into proportional interest in company ownership. The personal entanglements of the Leons and those Advisors who Shawn Leon also called debt holders in the January podcast are a real problem in my opinion. The new preferred shares that Shawn Leon spoke of, with terms to be determined, in the July podcast will likely be used to convert the balance of the more than $7 million of Shawn Leon's "friendly debt" from what I see.


For the fiscal year ended: December 31, 2023
https://www.sec.gov/ix?doc=/Archives/edgar/data/0000792935/000190359624000279/grst_10k.htm

Page 16

Leon Developments, Ltd.

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

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

We paid Leon Developments a management fee of CDN$250,000 (approximately $185,503) and $0 for the years ended December 31, 2023 and 2022, respectively.

Bubae
Re: janetcanada post# 50744
Wednesday, July 31, 2024 10:48:11 AM
Post# 50749 of 50826
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=174841515&txt2find=management%2Bfees

Filings going back years state that management fees were forfeited. The language is pretty unambiguous concerning this subject in the filings. Looks to me like he is trying to take the $420K as part of the conversions to acquire more than a 52% stake in this to take the sting out of it. They must believe that they need controlling interest to work the plan. That plan is in the interest of those who held more than $7 million in what Shawn Leon calls "friendly debt".