<<<<<<<<In turn, these GIFT customers will provide a portion of gross revenue from their GIFT enhanced operations for the period of their participation in the program.>>>>>>>>
That is called profit sharing and many say it is illegal. Which is exactly why they haven’t announced any GIFT participants.
It they can’t participate in profit sharing they can only charge a flat interest rate. Much like a Lowe’s credit card or Menards, Sears etc. There is no money there. Why would they tie up millions in cash to supply equipment etc to dispensaries/growers if they can only charge a low flat interest rate. There is far more money to be made with that money in other areas of this sector.
If they could have given a grow operation say $1M in financing/grow equipment and they split the profits with the grower the revenue source would have been huge. If the grow operation increased their revenue by say $5M and they split it with PHOT then PHOT would have made $2.5M on their $1M investment. The grower would have also increased their revenue by 2.5M without any additional expenses. Win/Win for all.
Plus since PHOT did not own any equity in the company they did not cross the green line and could not be charged with any federal charges if something went wrong.
I have heard for months that the original concept was illegal and the fact that they have announced no participants makes me think that is probably the case.
Keep in mind they said in November they had people lined up out the door and would be releasing a list of the participants by end of year and they haven’t makes me think it fell through and is not legal. JMHO
GLTA
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