GrowLife Inc (PHOT)

[Art Vandeley]

Penny stocks like GrowLife stay in business despite gallons of red ink because when they need more operating cash, they call upon a small number of lenders to pony up the capital in exchange for bonds convertible into stock.
GrowLife rarely, if ever, pays off the bonds — opting rather to convert them into stock. As of June 30, GrowLife had authorized 3 billion shares of stock and had 830 million shares outstanding.
One investor this year agreed to have a $30,000 loan to GrowLife converted into 4.7 million shares priced at just over a half-cent per share. With GrowLife shares closing Friday at 4 cents, down a penny in the session, that financier’s investment is now worth $188,000.

http://nypost.com/2014/10/19/reefer-sadness-sec-sniffing-out-pot-companies-for-fraud/

I for one was here pointing out the red flags and lobbying against the ridiculous vote for the A/S increase as it was pretty apparent the intent behind it. It is a shame novice investors were influenced to vote against their own best interests and were led like sheep to their own slaughter.