Replies to post #33024 on GrowLife Inc (PHOT)

[LAmerica]

Mkoch3 re death spiral...

re your statement:

I don't think I see anyone calling this a 'death spiral' but you said it for me. Until this company turns a profit, it's just gonna end up like TRT& in its death spiral financing.

until is the key phrase this whole enterprise is balancing on at this point. And until apx. a year is up, the possibility of the death spiral label can't accurately or responsibly be used or considered.

in the immediate, the financing deal not only threw out a line of credit to scale up & ink the type of profit deriving deals wh/ will justify the business model & the amount of shares at & later on hand, but it also threw the shareholders (execs included) a life preserver to insulate themselves, for a time, from further dilution while this company inks deals.

bottomline, you're only right, if we find ourselves a year later w/ no deals & no sustained rev flows. At that point, it would be accurate to cast such labels as death spiral.

But in the meantime you as a possible shorter, naysayer & purveyor of obloquial labels are also taking on large risk that the company lives up to its plans and rolls out their business model w/ inked contracts.