Pure Speculation re: PHOT/OGI Lawsuit Matter were

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Posted On: 03/22/2014 12:35:05 PM

Posted By: Trained Monkey

Pure Speculation re: PHOT/OGI Lawsuit

Matter were filed in business court, which is different than civil or criminal. For one thing, it moves much more quickly. As we can see from the filings, a complaint was filed, discovery heard, and a case opened on the same day (March 20).

Business courts handle contract disputes and business ownership disputes.

------------beginning of speculation in light of the above and what has been posted on FB by Bill------------

Since the 8k was filed, buzz spread that FITX was unhappy at the % breakdown in the deal, specifically the fact that only 10% ownership was listed as FITX, with AJOA and WP each assigned 25% and other investors a certain %.

Bill made grumblings last month at the open house that PHOT should amend the 8k and went to the trouble of posting the info showing that he (FITX) held ownership of these companies .

PHOT refused to amend the 8k, hence Bill's post last night of taking legal action seriously and as a 'last resort.'

--------------

In other words, FITX wants PHOT to amend the 8k. PHOT does not want to amend the 8k (I don't know GrowLife's reasons, but as attorney's I'm sure they have their argument as to why not). FITX therefore had no other option than to accept the filing as is or file in business court and seek a resolution/revision immediately so both companies continue to charge forward.

Not cancelling the deal, revising documents that show FITX owns 75%. To Bill, this matters A LOT.

-------------End speculation---------

Would you be surprised that this is totally normal? It's the kind of stuff that keeps me in business as an attorney.

Just throwing out what I think, take it for what you will... an OPINION. The only other thing I see it being is a dispute over ownership of a patent/license.

Either way, the deal is good and both sides are likely amicable. Money to be made, and they want seeds in Phototrons yesterday...

Long term (by licensing and deal closing in April) this is a non-story, IMO

TM