WOODLAND HILLS, Calif.,
April 24, 2014 /PRNewswire/ --
GrowLife, Inc. (PHOT), the recognized leader in specialty
hydroponics and an essential facilitator of the grower marketplace,
has posted an open letter to shareholders from its Chairman and
CEO, Sterling C. Scott.
Dear Shareholders,
As GrowLife prepares to resume trading, I would like to
personally reinforce the company's strength, growth potential and
commitment to transparency. Below, you will find candid responses
to key questions regarding the SEC's decision to temporarily halt,
and now support the resumption, of trading of GrowLife's stock.
What can the Company report involving the temporary
suspension in trading in shares of GrowLife imposed by the
SEC?
GrowLife understands that trading in GrowLife securities will
resume during market hours on Friday, April
25, 2014. The SEC has informed GrowLife through
counsel that it is not the subject of an informal or formal
investigation. The SEC has not requested any documents
from the company or its Board. Nor have they issued GrowLife
any subpoenas or broad requests for information.
It appears, from counsel's discussions with the SEC's staff,
that the SEC suspension was prompted by concerns that some
3rd party holder(s) of GrowLife stock may have been
planning to engage in some form of manipulative promotional
activity. GrowLife does not have any more specific
information regarding this matter. On behalf of GrowLife, I
can confirm that GrowLife was not involved in the planning of any
potentially manipulative promotional activity nor does it have any
knowledge of any planned 3rd party promotional activity
of any kind or type, proper or improper.
GrowLife has conveyed to the SEC its willingness to make
management available to the SEC to answer questions. In
response, we were informed that no meeting or additional
information from the Company was required at this time. SEC
staff reiterated that there was no formal or informal investigation
of GrowLife in process.
What is going on at GrowLife?
We have conducted our own internal review of policies and
procedures to ensure we are in full compliance, and have positioned
the company for future growth.
The Board of Directors of GrowLife has been actively working
with management to establish even higher levels of oversight and
checks/balances in place throughout the Company. This process
began back in late 2013 and early 2014 with the formation of a
majority of independent members to the Board of Directors,
including our welcome of outside directors Anthony Ciabattoni, Jeff
Giarraputo and Alan Hammer to
the Board, and the planning of committees on the Board of Directors
to actively focus on Audit and Compliance, Compensation, and
Mergers & Acquisitions. These are time-intensive
processes that are essential to the sustainable teamwork and
leadership that is characteristic of all of the strongest and most
capable companies worldwide.
We have been actively developing a GrowLife 2.0 business model
and go-forward strategy to propel the company, and the industry,
forward. Details will be announced next week. We invite our
shareholders to follow closely as GrowLife 2.0 is deployed in what
we believe will be the first large scale blending of experienced
world class management and the legal cannabis market in the
U.S.
Our corporate team has responded to thousands of investor
inquiries by phone and email arising from the trading halt since
April 10th. GrowLife
could not have anticipated the enormous volume of incoming calls
and emails. We appreciate the patience and understanding that
many shareholders exhibited to our team. We expect that call
volume will increase even further as trading resumes
tomorrow. We have responded with a hotline for investors by
phone at (866) 632-3111 and by email at
shareholderssupport@growlifeinc.com.
Our accounting team, led by CFO John
Genesi, has been actively engaged in preparation of
GrowLife's quarterly report for filing with the SEC and
announcement to shareholders timely on or before May 15, 2014.
In summary, GrowLife has sharpened its focus on boosting
business operations and developing a strong go-forward plan, while
working to understand the concerns of the SEC, and responding with
candor and integrity to more than a thousand shareholder
inquiries. All GrowLife stores remain open for
business. Our retail managers and employees have continued
actively working toward another record quarter for sales in our
business.
Does GrowLife believe that it can continue to prosper and
grow the Company for the benefit of shareholders?
We believe intensely in a positive future for GrowLife and our
industry. Extraordinary opportunities do not, however, come without
risk.
GrowLife management continues to believe that the legal cannabis
market in the United States is
going mainstream. We are dedicated to continuing to lead the
industry with the strongest management team and a business model
that we expect to be validated and improved over and over in the
years to come. Adversity only makes us smarter and stronger,
more committed to realizing the extraordinary opportunity that our
investors have allowed us to lead. We will continue to manage
and navigate those risks with integrity and transparency to the
very best of our ability.
Respectfully yours,
Sterling C. Scott
Chairman and CEO
About GrowLife, Inc. GrowLife, Inc. (PHOT) (www.growlifeinc.com)
is the recognized leader in specialty hydroponics and an essential
facilitator of the grower marketplace, through our nationwide
retail network, as well as online sites Greners.com, Phototron.com
and StealthGrow.com.
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.
Shareholder Support Hotline:
(866)632-3111
shareholdersupport@growlifeinc.com
Investor Relations Contact:
Integrity Media
(702) 396-1000
kurt@integrityir.com
SOURCE GrowLife, Inc.