GrowLife Inc (PHOT)

[invstruct]

Marco Hegyi published Oct 28 Form D $160,000 fundraising.

Is this positive or negative thing?
http://friscofastball.com/2016/10/28/noteworthy-form-d-filing-growlife-160000-fundraising-marco-hegyi-published-oct-28-form-d/

I'm questioning this part of the article.
"The reason for the financing was: On 10-21-2016: (1) 4,000,000 Common shares at $.01 per share issued to Ciabattoni Living Trust; (2) 2,000,000 Common shares at $.01 per share issued to Jeff Giarraputo; (3) 10,000,000 Common shares at $.01 per share issued to Mark Scott."

If the funds were raised to expand the business then I can see it as a positive thing but to give shares...??? I probably don't understand ins-and-outs of the business to really comprehend this event but if anyone knows the general reason for this kind of action, can you explain it and put my mind at ease?