GrowLife Inc (PHOT)

[Det_Robert_Thorne]

Not saying illegal, just looks odd

The insiders aren't selling to bring the price down, but to get cash, and that reason caused me to think of one other possible justification for the sales that would make them innocent, though they would look bad because of the timing:

Raise money to pay taxes on the grants, options, and compensation.

These people were all receiving a lot of shares, and if they were grants or compensation, then taxes would have to be paid. So selling a portion of the shares to cover the tax bill would not be out of the ordinary. It happens all the time.

Selling by the 9th would mean that the funds would be available on April 14, just in time to pay the tax man.

If this is the case with both Hunt and Scott & wife, it would be easy to document, which means that FINRA saw something else that they thought the SEC should explore.

I still think it has something to do with the Directors compensation and the nine Form 5 filings that replaced at least that many seriously delinquent Form 4s.