Growlife Inc (OTCBB:PHOT) is a tiny and lesser known play in the cannabis space that has been largely under-performing the broader sector. However, over the past four days, the stock has reclaimed respectability back above the $0.01 level – out of the sub-penny depths – and started to charge higher. The stock has powered more than 100% higher in that time, and just announced the launch of the GrowLife Retail License Program to close out 2016 on the last day of trading.
According to the company’s release, “The recent elections validated the nationwide demand for indoor cultivation by commercial growers as well as consumers. GrowLife’s Retail License Program repositions the Company to serve States with laws that support such cultivation, as well as addressing the increasing demand for indoor farming of healthier and localized fruits and vegetables. This groundbreaking program will work with independent business partners to license the GrowLife brand and work with the Company’s core team to open GrowLife branded stores. These stores will be either new stores or stores within existing retail outlets, creating a GrowLife store-within-a-store to introduce hydroponics products to their customers.”
Growlife Inc (OTCBB:PHOT) trumpets itself as the next in line as the nation’s largest cultivation service provider for cultivating organics, herbs and greens and plant-based medicines.
Their stated 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.
According to company materials, “GrowLife, Inc. 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 of more products to specialty grow operations. GrowLife is headquartered in Kirkland, WA, and was founded in 2012.”
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As noted in the company’s recent release, “GrowLife is a well-recognized and respected brand in the hydroponics world, and their Program will allow Fairmount Hardware to provide the very best hydroponics equipment and supplies to our local cultivation customers,” stated Ms. Ellie Siegel, partner of Christopher Herghelegiu, from Fairmount Hardware.
The GrowLife Retail License Program offers new and existing hydroponic and home supply stores the ability to brand their stores as GrowLife and gain access to GrowLife’s 15,000 product hydroponic supply chain, which will provide their customers with local access to hydroponics equipment and supplies for popular indoor controlled farming.
“After exploring this License Program for some time with several licensee candidates, we are excited to begin the roll-out in Philadelphia with Fairmount Hardware, an Ace Hardware franchise, and extend GrowLife’s coverage for our customers. Our shareholders will also benefit with GrowLife’s financial shift from a fixed to variable-cost business model,” said Marco Hegyi, GrowLife CEO. “The demand for hydroponic gardening and farming, which continues to grow, will now be served with localized GrowLife-branded retail partners that understand how to apply innovative indoor growing equipment and supplies ranging from specialty lighting and clean growing media to healthy and safe nutrients.”
The chart shows about 130% during the past month in terms of shareholder gains in the stock, but this action is running counter to the larger trend in the name. Market participants may want to pay attention to this stock. PHOT has a history of dramatic rallies. What’s more, the name has witnessed a pop in interest, as transaction volume levels have recently pushed nearly 120% above the average volume levels in play in this stock over the longer term.
Earning a current market cap value of $23.2M, PHOT has virtually no cash on the books, which compares with about $2.7M in total current liabilities. PHOT is pulling in trailing 12-month revenues of $1.3M. However, the company is seeing declines on the top line on a quarterly y/y basis, with revenues falling at -62%. This is an exciting story, and we look forward to a follow-up chapter as events transpire. For continuing coverage on shares of $PHOT stock, as well as our other hot stock picks, sign up for our free newsletter today and get our next hot stock pick!