Replies to post #51295 on Ethema Health Corp (GRST)

[Bubae]

Ethema Health was bankrupt and done in 2023 Paul. I was absolutely correct that the business was bankrupt. The Leons had to personally guarantee the the crazy property purchase, sale, leaseback deal of August 2023 to bail it out. They refinanced that $2.3 million in mostly defaulted debt into a lease liability of more than $9 million, more than $19 million over the 20 year term. Leonite held a note that refinanced defaulted debt the previous year secured by all assets of ATHI the holding company for the treatment centers and Ethema Health which finally forced their hand. Now Shawn Leon has so badly fumbled the regulation "A" offering and taken out a couple of more million in debt in 2024 that he claims to be trying another property purchase, sale, leaseback deal with the Edgewater properties. Think the Leons have enough on their personal ledger to underwrite another disaster? 😆

Now it would appear that these people are fools but I would like someone with the means to follow the cash. Millions of Ethema Health cash has went into the Evernia treatment center and now Shawn Leon is paying Lawrence Hawkins $1.1 million for the last 25%. No way should that be possible in my opinion given what Shawn Leon bought into in 2020 which was really nothing of a treatment center. Go to 9:00 in the January podcast linked below where Shawn Leon is talking about the Evernia treatment center purchase negotiated 51% ownership for zero dollars in return for financing to open the new facility. Compare the millions that went into Evernia to the $240K for the hard assets and a lease that they just took over the Boca treatment center for with roughly half the beds of Evernia. Now Ethema Health went from a slight cash flow positive position in 2023 when they weren't paying on that defaulted debt to one of a serious quarterly cash burn because now they must pay. OTC retail traders aren't bailing out the Leons and their so called "friendly debt holders" anymore.

In any case, according to your smart analysises, comments and repetitions, this company should have died at least a dozen times (conservatively) within the last 3 years.

Bubae
Member Level
Re: janetcanada post# 51157
Tuesday, September 03, 2024 6:18:11 AM
Post# 51159 of 51298
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=175023681&txt2find=guaranty

The company failed in 2023 in my opinion. Shawn Leon had to do the property purchase, sale, leaseback scheme to cover the $2.3 in mostly defaulted debt. Now they are financing not only the debt over 20 years but also the $5.5 million property price and the nearly $1 million in fees. That deal was personally guarnteed by both Shawn Leon, and his spouse Eileen Greene, by Ethema Health and ATHI, the holding company for the treatment centers.

Bubae
Re: Welcome2Pinkyland post# 50921
Wednesday, August 14, 2024 9:16:24 AM
Post# 50922 of 51298
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=174917110&txt2find=lease%2Bback

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.