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It's very involved. Are there any M&A attorneys on the board?
What might that be?
Yep that's a great read. They have secured financing and opportunity, and most importantly, know how from actual successful businessmen. They are in.
If the private equity firm is expecting to provide $1M of financing for each deal and get 10M shares in return (at .03), I imagine they are hoping for the share price to rise substantially more than .15 to make a decent return.
Do you need to work?
Agreed. Rob and Sterling have been incredibly transparent.
Thank you. List of officers due by 12/31.
At least initially, this private equity firm is tied with shareholder interests. They provide funding, networking, business expertise, and people who have successfully led large companies, sold them, and looking to invest in the next great thing, which in their estimation might be GrowLife.
Anthony J. Ciabattoni is an entrepreneur with over 35 years of experience. He was the founder of Pacific Business Interiors, which became the largest distributor of Steelcase office furniture in southern California, and a leading facilities management service provider to Fortune 500 companies. In addition to serving as President and CEO of Pacific Business Interiors from 1983 until its sale in 1996, Mr. Ciabattoni founded Recycled Office Solutions in 1993, a re-manufacturer of office furniture systems. Since selling those companies, Mr. Ciabattoni has been involved in a wide range of investments in the real estate, energy and private equity sectors. He serves as a member of the Board of Advisors for Waveland Capital Group, LLC, an investment banking firm that advises and raises capital for early-stage medical technology companies, including NeoMatrix, LLC. Mr. Ciabattoni served as a director of Transeastern Properties, a real estate development company recently acquired by Technical Olympic USA, Inc. Mr. Ciabattoni received a Bachelor of Arts Degree from the University of Delaware.
Signature at the bottom on the CANX side may be a clue.
No doubt this is a major play for financing. GrowLife needed some serious help all around. I think the private equity players will have the same goals in mind to create shareholder value, since they will be vested heavily themselves.
Huge news: 3 members from this private equity firm to GrowLife's board. We finally got smart finance people on our board. They are indeed our partners.
iii.
GrowLife Board Appointment. Concurrent with the execution and delivery of this Agreement by the Parties, GrowLife grants OGI the right to appoint three (3) members to the GrowLife board of directors (“OGI Director(s)”). GrowLife will maintain a seven (7) member board of directors, inclusive of the OGI Directors, unless a super majority consisting of eighty (80%) of the GrowLife board of directors vote in favor of adjusting the number of the GrowLife board of director members.
One way to look at it. Shares are predicated on expansion. Lots of strategy in this document.
Great they got a GIFT client, that is also the big news.
The deal structure with this private equity firm is interesting. Big days ahead. Someone has planned out all the way past $80M in deals.
A most important point. Transparency is unusually refreshing. investors can actually evaluate and talk about this.
Could actually be more valuable than $40M. It's called deal flow.
iii.
Consulting Services. CANX will provide OGI with executive level new business development, marketing, operational, private label and supply chain consulting services for a minimum term of thirty-six (36) months.
Thank you for the candor. Yes- I am not a trader, but it's moments like these that I wish I knew how.
Agreed. This is headlines for the industry, a real standout.
Well when someone loans a dilution pig $40M, is it a pig?
Wow. Good news is hard to stomach for some people, we are all learning how markets function.
Plenty of time to do that. Market today is about intuition, and emotion. Traders get that.
Sickening was the slow death without capital. We just got life. Remember- things change moving forward. the big news is the partnership. That is what the market is pricing in right now. Someone with deep pockets just saw the value of your shares, if you have some.
Agreed. If people just read both Grassroots investment reports, they will find that the valuation (.23) was based on obtaining $5M in funding. And if people looked they would see PHOT had no gotten that funding. Until now.
Folks- this is trust and collaboration in a big way. That is value. that is why the stock is up and will continue to be in the foreseeable future. This was a major pivot point in the history of GrowLife.
This company was seriously not even a contender for five years out without funding. You can read every SEC statement filing that says that like on page 1.
It's called incentives when deals happen. Not like 'dilution' because it is tied with business execution. That actually shows intelligence.
Also, maybe more importantly, the last sentence in the PR today indicates a major strategic pivot from stores to the financial/legal arena. A smart move given PHOT's core competences in those areas.
Randy Breitman, the GrowLife business development person, has taken courses at Wharton, a top business school.
Absolutely. Any potential investor will read that headline and be startled by the assymetry between $40M and a penny stock. It will generate buzz for weeks.
Talking about efficient versus inefficient markets. People don't get the good news even when it is right in their face. Even when it's the best news ever!
What? your calculations on #3 make 0 sense.
I have a MBA. I can read thank you.
Big picture dude. It's money and lots of it. Without money you are dead. It's really that simple.
Exactly the point. There will be no more fine print on the SEC statements that say GrowLife needs capital to survive in the next 12 months. Do people understand we just got LIFE?
Concur. We should push those 20 something's to do even better.
All true. The flip side is we have a partner with deep pockets. That was a absolute need for PHOT to survive and unleash its creativity and genius. And we have the option in the future to control that entity. We now have control of our destiny. $40M trumps any capitalization that has been transacted by a factor of 8!
Keep reading Benjamin Graham. I did that at your age it has served me well.
Keep being that skeptic. However some entity in Nevada just gave a vote of confidence of $40M nearly equal to the total market capitalization (ie ALL THE SHAREHOLDERS) to this company.
NOT BAD FOR A 20 yo!
In at .0314 and long. Who is the sheep?
This is the biggest news in this company's history, hands down.
The whole name of the game is Capital. Trust. When a penny stock gets a partner that is willing to go in with $40M, which was the total market capitalization of this company a month ago, THAT IS BIG NEWS.