Growlife Inc (OTCBB:PHOT) continues to trade with resilience in recent weeks right below the $0.02 mark on consistent significant volume. The stock saw a spectacular rise at the beginning of this year from well under a penny to highs of $0.0495.
PHOT operates in the booming MJ space which has turned into a multi-billion dollar massive growth market that is sweeping across North America. MJ penny stocks are once again booming as they seem to be this time of year with Canadian cannabis stocks gained an estimated 250% as a group in 2017. Recreational marijuana is now legalized in eight states and DC, including California where sales began on January 1. The total U.S. legal marijuana sales are estimated between to be around $7 billion in 2017. While it depends on other states legalizing marijuana, future growth is expected to be strong.
Growlife Inc (OTCBB:PHOT) aims to become the nation’s largest cultivation service provider for cultivating organics, herbs and greens and plant-based medicines. Our mission is to best serve more cultivators in the design, build-out and expansion of their facilities with products of high quality, exceptional value and competitive price. Through a nationwide network of local representative, regional centers and its e-Commerce team, GrowLife provides essential goods and services including media (farming soil), industry-leading hydroponics equipment, plant nutrients, and thousands more products to specialty grow operations in 17 states. GrowLife is headquartered in Seattle, WA and was founded in 2012.
PHOT trading was temporarily suspended in April, 2014 because of questions that have been raised about the accuracy and adequacy of information in the marketplace and potentially manipulative transactions in PHOT’s common stock.” When shares resumed trading, they were relegated to the grey sheets after loosing its listing on OTC Markets.
At the time of the suspension then CEO Sterling Scott tried to stop the collapse of his stock by issuing two press releases. He stated the Company had established a new shareholder hotline and email communication system to field shareholder questions over the next few days. He also stated the Company had been informed it was not the subject of an informal or formal investigation. Of course none of this was successful.
To Find out the inside Scoop on PHOT Subscribe to Microcapdaily.com Right Now by entering your Email in the box below
The stock has seen a massive surge after PHOT announced its common stock has resumed quotation on the OTC Bulletin Board after receiving clearance on its Form 15c2-11.
“GrowLife was notified yesterday that FINRA approved a market maker who filed a 15c2-11 in August 2014,” stated Marco Hegyi, President of GrowLife. “We are pleased to clear this important hurdle of restoring trading in GrowLife on the OTCBB. Re-listing on the OTCBB will allow us to enhance liquidity in the stock and attract additional market makers and institutional investors. We plan to expeditiously apply for up listing on the OTCQB to further these goals.”
On February 15 PHOT announced it closed an equity financing deal with longtime institutional investor Chicago Venture Partners a leading provider of capital to emerging and growth-stage small cap companies, on February 9, 2018. The terms of the deal include CVP purchasing shares of common stock priced at $0.021 per share, 15% above the trailing five-day average at $0.021 per share. Additionally, as a part of the deal, the Company issued warrants to purchase stock to CVP that were priced at $.05 per share.
“This investment of capital provides GrowLife with greater opportunities in marketing, sales and product development during what we believe is the most important year in the history of our company and industry,” said Marco Hegyi, CEO of GrowLife, Inc. “It is extremely exciting to have a long-term investor such as CVP who truly understands the potential of the Company and our strategy and believes in it so much that they were willing to invest at a premium price. Our 2018 growth strategy is in full swing and this deal will propel our efforts forward in our mission to capture a large market share of the emerging indoor cannabis cultivation market.”
We have a Monster Pick Coming. Subscribe Right Now!
Currently trading at a $47 million market valuation PHOT has minimal assets, slowing revenues and a significant debt load that continue to lead to dilution and the Company will need to issue at least $2 million in stock to settle current lawsuits. But PHOT is one pot stock to watch that knows how to sell the sizzle on this exploding phenomenon. The Company has also made a significant strategic shift away from their 5 retail locations to ecommerce and direct-to-consumer channels with new CEO Marco Hegyi leading the way. We will be updating on PHOT when more details emerge so make sure you are subscribed to Microcapdaily so you know what’s going on with PHOT.
Sign Up now for our 100% FREE Penny Stock Newsletter
Disclosure: we hold no position in PHOT either long or short and we have not been compensated for this article.