Maggas : Carpathian posted this last night Post #55685.
Good afternoon PHOT shareholders, it was a good day.
I was and continue to be impressed by the confidence the market continues to show in GrowLife. It is a true testament what openness and crossing your 'T's and dotting your 'i's from management will do for a stock. That is not mention the drive and aggressiveness executive management continues to bring to the table. So much has happened in such a short period of time I will let better and more experienced minds handle collecting all that data so as to present it to us laymen in terms we can understand.
What I want to offer today is to clear up some talk about "NASDAQ Up listing".
TL;DR: We are a few (imo two minimum) years off from being able to up list to NASDAQ
Share number|Holders requirements - MET
Share dollar requirements - Not Met Yet
Market capitalization - Not Met Yet
Revenue - Not Met Yet
No Net Loss - Not Met Yet
****What are the listing requirements for the Nasdaq?****
The listing requirements are broken up in two parts.
The first is required or all companies.
The second offers three different criteria that may be met.
-=FIRST REQUIREMENT=-
"Listing Requirements for All Companies
Each company must have a minimum of 1,250,000 publicly-traded shares upon listing, excluding those held by officers, directors or any beneficial owners of more then 10% of the company. In addition, the regular bid price at time of listing must be $4, and there must be at least three market makers for the stock."
GrowLife meets the share requirements but not the dollar requirements.
-=SECOND REQUIREMENT=-
One of three must be met
A)"The company must have aggregate pre-tax earnings in the prior three years of at least $11 million, in the prior two years at least $2.2 million, and no one year in the prior three years can have a net loss."
GrowLife does not meet this at all. We might see more than 11 million dollars revenue this year alone but we will more than likely show a net loss for the year. So on this basis we are still not there. Maybe a year away from this requirement? I think maybe two.
B)"The company must have a minimum aggregate cash flow of at least $27.5 million for the past three fiscal years, with no negative cash flow in any of those three years. In addition, its average market capitalization over the prior 12 months must be at least $550 million, and revenues in the previous fiscal year must be $110 million, minimum."
GrowLife does not meet this at all. Meeting this requirement would take longer than 'A' to achieve.
C)"Companies can be removed from the cash flow requirement of Standard No. 2 if the average market capitalization over the past 12 months is at least $850 million, and revenues over the prior fiscal year are at least $90 million."
GrowLife does not meet this yet, but again, maybe in one or two years.
As you can see, GrowLife is still a year or two off before up listing to NASDAQ is in the picture. We are in the growing pains stage fellow PHOT investors. It's not to say we won't make it to "dollar land" either.
There are also other big ifs and notes to clarify as it pertains to up listing.
*Up listing isn't automatic. After a company meets all of the requirements for an up listing, including financial requirements, corporate governance requirements and share price, it is still up to NASDAQ to give final approval. Would GrowLife be accepted considering the federal stance on marijuana?
*"Reverse splits are a sign of good things for companies on the way up, but a sign of bad things for companies on the way down." In order to meet the minimum share price requirements for Nasdaq, many companies will conduct a reverse split. This is perfectly acceptable to the exchange.
With that being said, this is ok. Let Sterling and the rest of the team do what they need to do to be the monopoly of this sector.
I'm leaning to voting YES now. With so much happening, I would rather bet it all and win big than play it safe and lose an opportunity like this to corner a brand new market. Not since the .com era have we seen such a fresh and exciting market. In a few years we will be seeing movies and TV where characters refer to other characters as "Oh he's a pothead-millionaire; he made all his money betting everything on marijuana stocks a few years back". It's a risk, but it's one worth taking. I was too young to take advantage of the .com era, but by George I will take advantage of this one. This is by far my riskiest play in my portfolio, but this is the most exciting one. @AMRQ was close though.
Eventually we will see a reverse split, or stock buyback, or both. I'm betting on both. This industry is so unregulated and worth so much that I have little doubt we will see GrowLife be in the black quickly and it's coffers become very full with liquidity. Leadership has shown they want to reward shareholders who took this risk with them and a stock buyback is a great way to do so.
In any case, thank you to those who read my post and in a few years I hope us longs can all meet in Vegas to revel in our success.
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