Short article coming soon - "Smoke and Mirrors - How a company worth $0.03/sh (at best) is currently trading at $0.39". I'll be laying out how PHOT shareholders are going to be absolutely hosed by the current partnership structure, which has many fraudulent aspects that FINRA and the SEC will clearly be made aware of. It will be extremely obvious to you all after reading the report.
The endless hype by management and hundreds of millions of issued below market warrants has artificially boosted the share price to levels of absolute insanity. At the current share price of $0.39, PHOT is being valued at $340m (before Joint Ventures), with a revenue base of $6m. Nothing like an unproven business model with negative organic growth trading at 57x REVENUES!! PHOT is now one of the most overvalued stocks in the entire market. And it's about to get much much worse.
If the announced joint ventures go through [RXNB, CEN], then the share count will balloon to 1.36 BILLION, while only adding $5.3m of PHOT's share of partnership revenues. So, let's think about that for a second. They are going to issue 500m shares for $5.3m of current revenues?? 500m shares x $0.39/sh = $195m of issued stock. I'll fully elaborate in the short report. You would be left with a company valued at $541m and a whopping $11.3m in revenue, or 48x revenues. And it even gets WORSE. If all the CANX warrants trigger, you then have 2.6 BILLION shares outstanding and a $988m enterprise value for a company with minimal revenues, virtually no assets, or earnings power. Again, something I will fully lay out in the report Fair value of PHOT is closer to $50m inclusive of ALL the relationships, fake or real. PHOT shareholders are going to get "smoked" very soon as they get fully taken advantage of through endless rounds of dilution to fill other people's pockets with cash. When the music is over, you don't want to be involved. I'm sure many initial readers of this post will scream and yell how I'm wrong and PHOT is a great company with great growth prospects. Well, smoke up buddy, it's nothing but a pipe dream. Stay tuned...
