GrowLife Inc (PHOT)

[Corner Pocket]

Go Short, Here's Why:

For now CANX are going to provide an initial payment of $1.3 million and another $1 million under a 7% convertible note. And here start the worries of PHOT shareholders. This joint venture may cause severe dilution of PHOT's common shares. First they issued CANX 140 million transferable unrestricted warrants to purchase 140 million shares at a third of the current market price or just $0.033. In addition if PHOT increase their authorized stock they will have to issue another 100 million warrants with the same characteristics. That is still not all though, with another 20 blocks of 10 million warrants waiting to be issued under cetain conditions.