KIRKLAND, Wash. -- (Business Wire)
GrowLife,
Inc. (OTCQB: PHOT) (“GrowLife” or the “Company”), one of the
nation’s most recognized indoor cultivation product and service
providers, today announced financial results for the quarter ending
Sept. 30, 2018, and provided an overview of recent operational
highlights from that quarter. The company experienced continued growth
over last year, showing a 44.3% increase in revenue over Q3 2017. For
the nine-month period ending Sept. 30, 2018, the company experienced
revenue growth of 74% over the same period last year.
“We are pleased to share some of the significant milestones met in the
development and expansion of our commercial cultivation product offering
as well as impressive revenue growth we achieved in the third quarter of
this year,” said GrowLife CEO Marco Hegyi. “During the third quarter, a
historically slower quarter for our industry, we saw incredible results
from our proof-of-concept study on our proprietary vertical grow room in
development by our product development division. We look forward to
further testing this system and bringing it to market in the coming
months. Additionally, GrowLife’s seamless expansion into the Canadian
marketplace saw further increases in sales and our new storefront and
distribution centers in Portland, Maine and Los Angeles positioned us to
more efficiently service the expanding legalized United States market
through not only a retail presence but e-commerce fulfillment. Finally,
we attended some of the most important and relevant industry events to
network with industry leaders and speak on GrowLife’s products and
services and further position us as a leader in commercial cannabis
cultivation.”
THIRD QUARTER 2018 HIGHLIGHTS
During Q3 2018, GrowLife, Inc. achieved the following milestones and
significant events:
Announced Rights Offering to Shareholders for Investment Opportunity
for Marketing, Sales and Technology Expansion
-
The Company announced a right’s offering for shareholders of record on
Oct. 12, 2018. The rights offering was designed to give shareholders
the opportunity to invest directly into PHOT at a set price with
additional warrants to support the company’s capital raise to be used
for continued expansion. The rights offering deadline was extended to
Oct. 20. For more information, shareholders are encouraged to work
with their brokers or visit http://growlifeinc.com/investors/rights-offering/.
Filed a Patent on a Standardized Vertical Grow Room Farming System
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GrowLife Innovations, the product development division of the company,
filed a provisional patent application with the United States Patent
and Trademark Office (USPTO) on a highly efficient and scalable
vertical cultivation system. The Automated Indoor Cannabis Growing
Facility is designed to produce high-quality, consistent and
cost-effective cannabis. The company identified a need for commercial
cultivators to continue to reduce their production costs while still
producing large volumes of high-quality cannabis.
Announced Results from Proof-of-Concept Study On Company’s
Proprietary Vertical Grow Room
-
The Company announced preliminary test results from a Proof-of-Concept
(POC) study in Colorado with a licensed customer on its proprietary
vertical grow room system. The study has proven that the system can
house four times as many plants as compared to traditional grow rooms
with the same square footage. The system, which operates in only 64
square feet, is currently being tested with 70 full-size plants
utilizing cubic volume versus horizontal square footing, which would
traditionally only allow for the growing of up to 15-17 plants.
-
The Company also announced preliminary test results from a
Proof-of-Concept (POC) study in Colorado with a licensed customer on
its proprietary vertical grow room system. When compared to plants in
a traditional grow room, results showed a 76% reduction in per-plant
kilowatt usage with the 8’ x 8’ GrowLife cubical vertical grow system
that would result in significant cost savings for cultivators.
Increased Retail and Fulfillment Footprint Across the United States
-
The company added a location in Los Angeles, in the heart of the
world’s largest legalized cannabis market, through the purchase of
assets from GoGreen Hydroponics. The facility, located at 15721
Ventura Blvd., Encino, CA 91436, will act as the company’s West Coast
retail and e-logistics fulfillment center.
-
The Company held a ribbon-cutting ceremony in Portland, Maine, for its
newest retail location named GrowLife Hydroponics. This storefront
carries GrowLife’s line of industry-leading hydroponics and soil,
along with thousands of other brands and products that cater to
cultivators of all sizes. The East Coast is poised for additional
legalization in the coming months and this location will also serve as
the company’s East Cost fulfillment center for orders placed on its
e-commerce platform.
Reported Year-Over-Year Revenue Growth in Q2 2018 Financial Results
-
The Company experienced escalated growth over last year, showing a 74%
increase in revenue over the same quarter last year.
Presented at Two Major Industry Events
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President of GrowLife’s Commercial Division Joe Barnes spoke on
GrowLife’s mission and product offerings with attendees at
CannaGather’s Growing With Danny Danko event in August at Galvanize in
New York.
-
CEO Marco Hegyi spoke at the Cannabis World Congress and Business Expo
(CWCBExpo) on a panel entitled “Investing in Ancillary Companies” in
September at the Los Angeles Convention Center. During the panel,
Hegyi discussed the opportunities ancillary companies present to
investors eager to enter the rapidly evolving cannabis space.
Reached a Securities Purchase Agreement, Secured Promissory Notes and
Security Agreement with Iliad Research and Trading, L.P. (“Iliad”)
-
On Aug. 10, 2018, the Company closed the transactions described below
with Iliad.
-
On Aug. 7, 2018, the Company executed the following agreements with
Iliad: (i) Securities Purchase Agreement; (ii) Secured Promissory
Notes; and (iii) Security Agreement (collectively the “Iliad
Agreements”). The Company entered into the Iliad Agreements with the
intent to acquire working capital to grow its businesses.
-
The total amount of funding under the Iliad Agreements was $1,500,000.
The Convertible Promissory Note carries an original issue discount of
$150,000 and a transaction expense amount of $5,000, for total debt of
$1,655,000. If not converted sooner, the Debt is due on or before Aug.
7, 2019. The Debt carries an interest rate of ten percent (10%). The
Debt is convertible, at Iliad’s option, into common stock at $0.015
per share subject to adjustment as provided for in the Secured
Promissory Notes. The Company’s obligation to pay the Debt, or any
portion thereof, is secured by all of its assets. The Company has
$1,055,000 available under this debt financing.
THIRD QUARTER 2018 FINANCIAL RESULTS
Net Revenue: For the period ending Sept. 30, 2018, GrowLife
showed net revenue of $954,000 as compared to revenue of $661,000 for
the period that ended Sept. 30, 2017, an increase of 44.3%.
Balance Sheet: Total Assets for the company were $1,219,159 as of
June 30, 2018, compared to $861,866 as of December 31, 2017.
For more information about GrowLife, please visit the company’s website.
Products can be purchased at ShopGrowLife.com.
Additional commentary on the company and the industry as a whole can be
found on the CEO’s blog.
About GrowLife, Inc.
GrowLife,
Inc. (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 help make our customers successful. Through
a network of local representatives covering the United States and
Canada, regional centers and its e-Commerce team, GrowLife provides
essential goods and services including media, industry-leading
hydroponics and soil, plant nutrients, and thousands more products to
specialty grow operations. GrowLife is headquartered in Kirkland,
Washington and was founded in 2012.
For more information, The GrowLife 2017 Stockholder Review presentation
can be found on the Company’s homepage at www.GrowLifeInc.com.
FORWARD LOOKING STATEMENT:
This release contains statements that constitute forward-looking
statements within the meaning of Section 27A of the Securities Act of
1933, as amended, and Section 21E of the Securities Exchange Act of
1934, as amended. These statements appear in a number of places in this
release and include all statements that are not statements of historical
fact regarding the intent, belief or current expectations of GrowLife,
Inc., its directors or its officers with respect to, among other things:
(i) financing plans; (ii) trends affecting its financial condition or
results of operations; (iii) growth strategy and operating strategy. The
words may, would, will, expect, estimate, can, believe, potential and
similar expressions and variations thereof are intended to identify
forward-looking statements. Investors are cautioned that any such
forward-looking statements are not guarantees of future performance and
involve risks and uncertainties, many of which are beyond GrowLife,
Inc.’s ability to control, and actual results may differ materially from
those projected in the forward-looking statements as a result of various
factors.
View source version on businesswire.com: https://www.businesswire.com/news/home/20181115005265/en/
Contacts:
Public Relations Contact:
CMW Media
Cassandra Dowell,
858-264-6600
cassandra@cmwmedia.com
www.cmwmedia.com
Investor Relations Contact:
info@growlifinc.com
Source: GrowLife, Inc.
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