Replies to post #50921 on Ethema Health Corp (GRST)

[Bubae]

They have been funding this Evernia treatment center for four years now and they still can't say Ethema Health shareholders own the operation and will never own the property even after paying for it. Ethema Health has taken on the debt and funded the build out of the treatment center and still are paying out Lawrence Hawkins with $1.1 million for the last 25%. That makes no sense if you know the history here. The man has already made a small fortune off of this.

Now the Evernia treatment center and its holding company which has a share structure of its own, American Treatment Holdings, Inc. (ATHI).is way over leverage to secure the new debt. Yeah, they are building a business. Up to now they have been running a borrowing Ponzi scheme because they haven't been able to convert equity to cash for more than two years now. It doesn't look as if they are any closer now even after months of promotion.

• They have the new credit line and executed draws in May alone totaling $450K on the credit line. This credit line includes fees with each draw and earns interest at 60% APR. Credit line is"...secured by all assets, tangible and intangible of the Company and its direct and indirect subsidiaries, American Treatment Holdings, Inc. and Evernia Health Center, LLC". Details in Post# 49945 linked below.
  
  
• $1.2 million in new bridge loans, one of which dated May 15, 2024 for $600K matures November 15th 2024.This note has some nasty default terms including converting into shares of the Evernia Treatment center held by ATHI for essentially the 25% they just claimed to have purchased for $1.1 million. Details post# 50049 linked below.
  
  
• They still have a large percentage of the American Treatment Holdings, Inc. (ATHI), holding company for the Evernia treatment center in the form of 5 year options for direct ownership of ATHI shares to secure the original notes funding this mess in 2020. Details in post # 49898 linked below.
  
  
• Ethema Health (GRST), The Evernia Treament Center and the Leons are all listed as Guarantors of the 2023 property purchase, sale, leaseback scheme. Details in post# 50912.
  
  
• By far my favorite is the guarantee of the deal handing over $1.1 million for the 25% share to Lawrence Hawkins. The balance owed of $475,000 is guaranteed by American Treatment Holdings, Inc., the Evernia Health Center, LLC, and Shawn Leon himself. This is an insider concerned about getting paid and put Shawn Leon on the hook personally! 😆 Details in the Q1 2024 filing linked below.
  
  
• The Evernia Health Center LLC took on the obligation of the Lease for the new Boca location. I wonder if all these other lenders know this? 😆 Details in the June 18th 8K filing linked below.
  
  
• I'm not even certain that I captured all that is secured by the Evernia treatment center and its holding company with a share structure of its own, American Treatment Holdings, Inc. (ATHI).

Bubae
Re: None
Saturday, May 18, 2024 7:06:43 PM
Post# 49898 of 50921
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=174446888&txt2find=options%2Bpercentages

We need to go back to the Q3 2021 filing to see the percentages assigned to the options because by Q1 2022 they dropped the percentages. The $655,000 listed by Leonite becomes $396,000 by Q1 2022. So part of my question of how Ethema was able to put up all the assets of both Ethema and ATHI to secure the new $1 million in revolving credit line was answered by the buy out of Lawrence Hawkins 25%. Now what about the options that secures debt. These holders are entitled to 50% ownership of the original option after the debt is paid.

Bubae
Re: None
Friday, June 07, 2024 9:07:49 PM
Post# 49945 of 50921
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=174565220

According to the chart on page 17 of the quarterly the company took three draws on May 1st, 12th, and 14th totaling $320K. Then again in the subsequent events section we see another draw of $130,000 on May 15th for a total of $450K drawn on the credit line in May. This draw on the 15th of May was used to repay a draw taken on February 15th.

Bubae
Re: None
Sunday, June 16, 2024 2:43:59 PM
Post# 50049 of 50340
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=174608088

...gross proceeds of $600,000, maturing on November 15, 2024...

...default interest at a maximum of 24% per month...

...The Senior Note, upon an event of default, may be converted into shares of ATHI at the rate of 1% of ATHI for each $24,000 of indebtedness, capped at $633,000...

Bubae
Re: None
Monday, August 12, 2024 10:30:08 PM
Post# 50912 of 50921
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=174909131

1.5 Guarantor. The term “Guarantor” means (1) American Treatment Holdings Inc, a Florida company, (2) Evernia Health Center LLC, a Florida limited liability company, and (3) Shawn Leon, personally (the “Personal Guarantor”);

June 18th 8K
https://www.sec.gov/ix?doc=/Archives/edgar/data/0000792935/000190359624000390/grst_8k.htm

The Company subsidiary Evernia Health Center LLC took on the obligation of the Lease for the location at 899 Meadows Avenue and a copy of the lease, the assignment of the lease and the consent to assignment are attached hereto in Exhibit 10.01. The lease runs to June 30, 2027 with two five year extension options. The Company paid to the Vendor the Lease deposit amount included in the lease in the amount of $83,392.79. The lease is with Prado Meical Park, Inc.

For the quarterly period ended March 31, 2024
https://www.sec.gov/ix?doc=/Archives/edgar/data/0000792935/000190359624000371/grst_10q.htm

Page 24
Purchase of minority shareholder interest in ATHI

On May 15, 2024, the Company, Q Global Trust, LLC (the “Seller”), Lawrence B Hawkins and ATHI entered into an agreement for the purchase of the 25% minority shareholders interest in the share capital of ATHI for gross proceeds of $1,100,000. The Company paid proceeds of $625,000 on closing, and issued the Seller a promissory note for $475,000, subordinated to the Senior Note above. The Company will make 8 monthly installments of $10,000 each and on the ninth month a payment of $157,500, for the next eight months the Company will make payments of $10,000 each and on the eighteenth month a final payment of $157,500, totaling $475,000. The note does not bear interest and is guaranteed by Shawn Leon, Evernia Health Center, LLC and ATHI.