GrowLife Inc (PHOT)

[Trained Monkey]

PHOT and VAPE to enter JV by 4/20 to research development of patentable technology


GrowLife and Vape Holdings Enter LOI to Fund and Develop Pharmaceutical Grade Processes for Cannabis Extractions


http://ih.advfn.com/p.php?pid=nmona&article=61475050

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Key items:


Joint Venture (JV) with Vape Holdings, Inc. (OTCQB:VAPE) to fund the research and development of patentable technology to create pharmaceutical grade extractions from cannabis.


Each Company will bring its specific expertise to the Joint Venture; GrowLife providing Equipment Manufacturing while Vape Holdings provides guidance


To that end, the partners in the Joint Venture are intent on introducing medical, food and pharma grade practices into the cannabis industry; from cultivation to extraction to delivery. The Joint Venture looks to service a void in the industry with regard to SOPs (Standard Operating Procedures) and GMPs (Good Manufacturing Practices), which are instrumental in all regulated food and pharma grade production/manufacturing.


The parties have agreed to negotiate the terms of a Joint Venture agreement ("Agreement") and other ancillary agreements as may be necessary to effectuate the intent of the parties. It is the intention of the parties to execute a definitive joint venture agreement on or before April 20, 2014.

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Takeaway:

It's not a GIFT, or even a sale. What it is - two companies seeing a niche in the market (edibles and consumables) and teaming up to patent/strategize/enter the area to their advantage.

This will likely lead to business moves between the two, assuming any patentable technology and revenue accretive technologies are discovered.

TM