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They are too smart to get in the weed at the moment, however I am sure with their legal expertise they have charted in a timely exactly under what circumstances they will move forward and have made investments/plans accordingly.
You are exactly right- disorganized due to M&A. I happen to be taking a M&A course right now and the usual time for success is 2 years. The merger is 6 months. Plus they lack business skills. But-and this critical- they were honest about to us and themselves which attracted a $40M investor who has the skill sets they lack and more. That is why he came on board.
Great job!
This is a totally different company moving forward. They will not have to write on each SEC statement about the high risk of not being a going concern in 12 months- they have funding for years. More than that, their opportunity has been scaled by at least a magnitude (10x) as far as deals they can do. Most important- and this critical- they have aligned their skill sets (legal compliance) with a financier and are now able to leverage that in a huge opportunity to bridge the gap of a lack of liquidity present in the market due to banking regulations. This is a smart play.
Back in with 1M shares at below my selling point- if you read my postings very carefully you will see exactly when I did get back in. The reason- and this is critical for some who might understand the ethical nature of trust as it relates to business and reputation (this is Buffet's magic) is that I was really impressed with such a bad miss that Sterling and Rob wanted to share their time with us on iCannabis radio. I'm really glad I did, and it was not a surprise to me that a $40M investor went in also. Their honesty and transparency is invaluable. They may have lacked some business skills, but we have that with Anthony and company with the new JV.
Do you think the person with $40M has not thought about this? The difference is he has. He knows Sterling better than you or when he signed all those detailed agreements, no?
Of course it's not a gift- its smart money, especially because the person who has invested has started and sold multiple companies. Have you done that? You cannot and will not with the attitude you have. You will not attract money to drive a company if the first thing you think about is not sharing.
Yes they do because they have a lot of shares. Sterling has 124M of them.
I'm sorry you think this way, my experience in life appears to be quite different from yours. thank you for your perspective.
Do we need newbies anymore? We have a financial superstructure with $40M, doubling our capital base. Hello?
Do you really think Sterling, Rob, and Anthony (69 yo) will let your Hell happen?
And the other thing- please read the SEC filings carefully. These are warrants that expire in 5 years. No immediate dilution. And if you know anything about the PE manager that signed the JV agreement, he is not about to exercise his options.
Capitalism might not survive with this dilution attitude. This is what VC and PE firms do. They invest and dilute the original shareholders, including founders. If you are smart you join the smart ones, like this group who's actually going to lend us a hand (actually they want to control the deals first because they are actually good at that) and help with governance (3 new very needed board members who have a clue on business). Not a bad deal. Punch out if you can't handle the good news.
PHOT SELLS LIGHTBULBS SCAM LOL LOL
LOL LOL
Well said. I am really trying to understand the negative points of view. It is just amazing that an investor comes in with $40M to a penny stock and people don't understand this is an amazing opportunity to get in on the ground floor.
Has anyone done their DD on the PE manager? I have, and I will not share for respect of his privacy. He does have an amazing story and we are fortunate to have him on board.
This is a smart board and includes accredited investors, if you know what that means. Please do your DD to add to the quality of our discussion.
Yes- leverage your knowledge before the educated get in. For example -I am in at .0314, lower than our new educated PE partners.
Yes- Hold to get 100x, like I did. Buy more on dips like I did. And if you follow a stock for 12 years daily, you can do amazing things in the market :)
One other thing- although it is true the outcomes are as varied as you posted- from .02 to $1.50 on 'Monday', anyone who has taken a MBA decision analysis course knows that the probabilities for those outcomes and everything in between can be modeled, for example with a normalized curve. So it's fair to say those outcomes are very unlikely.
That is true. I'm willing to go with $40M investors. I bet they might be a bit better informed.
Interesting. Everyone has an opinion, rational or not!
Agreed
Not hard to fathom his reputation being the way you describe- given the prescient powers that he has it can easily be leveraged for control of resources. Food for thought if we ever get into that position :)
True- but I assure you the PE guys did- and did PHOT- to structure the deal. Lots of fancy excel modeling. And behind all that are assumptions and STRATEGY. So all are on the same page. And not just talking about dilution and pigs.
And interestingly cyclic in nature. George Soros has a philosophy about it- in fact his whole basis of investing has to do with this market emotion that in continuous real time actually is changing the perception of value. He has used it in the currency markets quite well.
One key point- if we get to the described endpoint- CANX will own 49% of the company. In other words, they would not have control. Furthermore, PHOT will control the JV. In other words- they show us how to get sales, do marketing, structure the deals, and finance us. In return at the end we are a scaled (rapidly growing) company that has control of its destiny.
Sure. The series is everywhere- in the Thai numeral for one, it's a symbol for unity, it's inherent in planetary motion and in that regard, astrology. Kepler and Copernicus used it for their calculations.
If you read the filed JV SEC statement, you might be able to infer that PHOT will be a totally different company at that point. We would have a minimum of $80M of deals and made our footprint on the industry. Just try to imagine that because I can, and I assure you, Sterling and the PE partners can. That's why we got $40M.
And noticed how the JV is structured. The PEOPLE guys initially want to control the deal flow and develop a platform for PHOT. Once it is nature, as evident by $80M business, and only then, will they turn over control to PHOT. In other words, they feel they can bring value and expertise we don't have now. So they have skin in the game. That is classic business.
We're all in this together. Sterling as 124M. Hunt has lots of shares. Now these private equity guys. Its part if the deal man. You play or you punch out.
Although I don't know much about fibs, the mathematical concept of cycles intuitively makes sense. Our whole universe runs on cycles. The markets (behavioral science) run in cycles. There are many traders who have become amazingly wealthy by understanding and shrewdly employing these techniques. Gann (charting) was a fine example of this.
And these are not investors like you and me. They have done it before- founded, scaled (grown), and sold their companies. They have $40M to play and know where to find patterns if success- because they have done it!we are fortunate that we meet their mark despite our earnings miss last quarter. They are obviously privy to a great deal of information we don't have- but we can extrapolate that GrowLife is a good deal.
Nice post- literally sounds like a case from a VC seminar I took at school last year. One caveat to the 25% and I'm sure you know this- in general, this is what happens with further funding (Series A, B, C....etc). Earlier investors always complain their share is diluted with each funding cycle. In fact, founders complain too. But the fact is the earlier you get in the bigger you will win. Each funder valuates the company to get a piece of the pie- and they do a serious DD including most critically their forecast of growth. Clearly they are forecasting huge growth moving forward.
Very nice post and a lot of good questions about their strategy. One thing is certain- Growlife has had a flurry of concrete steps in the last 6 months that has solidified them as major innovative players in this nascent industry. The rest of the pack is watching what their next move will be.
I actually invested in a company that went from a penny stock to $97. Concur technologies. Have you?
What evidence do you need if there are people who have founded and sold large companies and will provide members to our board? Have you done this?
So the folks with $40M did not do their due diligence. That's an incredible statement.
Agreed. Entrepreneurs are constantly mitigating risk. PHOT created such a runway that we got the funding we needed to execute. Now it will be the quality of deals, not necessarily the quantity, that will really matter. And we actually got smart and experienced people to do that.
He who will not risk cannot win
I just had to post the lightbulbs PHOT scam again.
Bound to happen. Timing uncertain from the perspective of this investor. Trying to learn timing.
Has gone up on most Mondays since early August. Unusual for us to be higher on a Friday.
Our entertainment! Can't wait till Mullet sings Christmas carols!