The Company makes a transformative move to become the nation’s
largest cultivation service provider, starting with a major
expansion to 17 states, and new CANX partnership
GrowLife, Inc. (OTC: PHOT) aims to become the nation’s largest
cultivation facility service provider for organics, greens and
plant-based medicines. The Company announced today its first
significant achievement towards that vision with the nationwide
launch of its direct-to-cultivator sales network and automated
replenishment services beginning in 17 states. Additional states
will be added by the end of the year. GrowLife also announced a new
strategic partnership with CANX USA LLC (CANX). The partnership
with CANX provides financial resources to GrowLife under an
expanded joint venture agreement that will support the Company’s
national expansion, and mergers and acquisitions (M&A)
initiatives.
“The most efficient way for us to take advantage of the
explosive growth in the industry is to be proactive and bring our
goods directly to our customers. Since June, we’ve developed and
launched the first 17 states of our nationwide sales expansion
plan,” said GrowLife President Marco Hegyi. “Also, we’ve shed more
than 60 percent in operating expenses from under performing retail
and business units with this plan. This increases our ability to
reach a significantly larger customer base, thus generating greater
revenue at a much lower operating cost. We’ve passed on these
savings to the customer as well.”
GrowLife activated its nationwide sales network initially
servicing Arizona, California, Colorado, Connecticut, Delaware,
District of Columbia, Maine, Maryland, Massachusetts, New
Hampshire, New Jersey, New York, Oregon, Pennsylvania, Rhode
Island, Vermont and Washington. With GrowLife, specialty
cultivation facilities can be assured they will have timely and
reliable access to the industry’s premium supplies such as farming
soil, plant nutrients, hydroponic equipment, and thousands more
products.
“Building a cultivation facility requires huge investments in
certified lighting, premium grade soil, and top nutrients,” said
Daniel Curlyo of Cascade Crops. “We’re a GrowLife customer because
we can’t afford to invest in supplies or services that could
jeopardize the quality of our crops, or our government compliance
status.”
Also announced today is an enhanced strategic partnership
between GrowLife and CANX. The partnership, as agreed to under an
amended joint venture, increases funding resources to three new and
significant channels for GrowLife. In addition to its expansion
efforts, GrowLife will apply these new funding resources to
high-value, cash-flowing mergers and acquisitions that are critical
to the business.
Under this partnership, CANX agrees to provide GrowLife with $10
million in working capital with secured loans, $12 million in
GrowLife-direct M&A capital resources, and joint venture
M&A financing exceeding the $40 million cap, imposed by the
previous arrangement. All transactions must be approved by the
joint venture and meet a pre-determined deal criteria. Furthermore,
CANX has waived defaults from the prior November 19, 2013 contract
with GrowLife. In addition, the Company obtained waivers of default
from other lenders, which were triggered by the trading halt back
in April.
“We’ve removed many obstacles, distractions, and secured
financial resources necessary to stabilize the company and launch
2.0,” said Hegyi. “CANX and GrowLife have come together under a
revised agreement that gives us access to capital under favorable
terms that are designed to mitigate risk, generate cash flow and
return on investment. Except for resolving the class action and
grey sheet matters, which we are pursuing, we’ve paid the price to
take corrective action, cut about $160,000 in spending each month,
and are now focused on building the nation’s largest cultivation
product and service network.”
GrowLife offers high-quality supplies to commercial and
independent cultivators across the nation to help ensure grows are
safe, certified and produce premium results. As a result, GrowLife,
along with its valued customers, is responsibly building a new
high-growth economy that is keeping revenue accrued on our shores.
GrowLife is now poised to capture a large share of the market while
exercising a conservative financial structure that strengthens
operations. Learn more about what’s happening at GrowLife from
Hegyi here, or visit: www.GrowLifeInc.com.
About GrowLife, Inc.
GrowLife, Inc. (PHOT) (www.growlifeinc.com) 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.
Cautionary Language Concerning Forward-Looking
Statements
This release contains "forward-looking statements" that include
information relating to future events and future financial and
operating performance. The words "may," "would," "will," "expect,"
"estimate," "can," "believe," "potential" and similar expressions
and variations thereof are intended to identify forward-looking
statements. Forward-looking statements should not be read as a
guarantee of future performance or results, and will not
necessarily be accurate indications of the times at, or by, which
that performance or those results will be achieved. Forward-looking
statements are based on information available at the time they are
made and/or management's good faith belief as of that time with
respect to future events, and are subject to risks and
uncertainties that could cause actual performance or results to
differ materially from those expressed in or suggested by the
forward-looking statements. Important factors that could cause
these differences include, but are not limited to: fluctuations in
demand for GrowLife's products, the introduction of new products,
the Company's ability to maintain customer and strategic business
relationships, the impact of competitive products and pricing,
growth in targeted markets, the adequacy of the Company's liquidity
and financial strength to support its growth, and other information
that may be detailed from time-to-time in GrowLife's filings with
the United States Securities and Exchange Commission. Examples of
such forward-looking statements in this release include statements
regarding future sales, costs and market acceptance of products as
well as regulatory actions at the State or Federal level. For a
more detailed description of the risk factors and uncertainties
affecting GrowLife, Inc. please refer to the Company's Securities
and Exchange Commission filings, which are available at
www.sec.gov. GrowLife, Inc. undertakes no obligation to publicly
update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise.
GrowLife, Inc.Media Relations:Tina QunellGrowLife
Communication Team206-919-9652tina@growlifeinc.comorInvestor
Relations:Tina QunellShareholders Support
Team206-919-9652tina@growlifeinc.com
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