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GrowLife Secures Additional Financing

July 16, 2015 18:16

The Company received an initial funding tranche of $700,000 on July 9, 2015 to grow profitability and fund steps to full regulatory compliance.

SEATTLE, Wash.–(BUSINESS WIRE)– July 16, 2015 — GrowLife, Inc. (PHOT), one of the largest cultivation service providers in the nation, announced today a closing of up to $3,000,000 in financing from a single institutional accredited investor with an initial tranche of $700,000 in financing funded on July 9, 2015.

The Company entered into and closed a Securities Purchase Agreement and related agreements dated July 9, 2015 (the “Transaction Documents”) with an accredited investor (the “Purchaser”) whereby the Company agreed to sell up to $3,000,000 of senior secured, convertible, redeemable debentures to the Purchaser, of which $700,000 was purchased and funded on July 9, 2015.

The Company plans to immediately deploy much of the capital into revenue-generating product initiatives while also earmarking a portion of the proceeds to target getting current in its reporting obligations with the SEC and using our best efforts to secure listing on the OTCQB within ninety (90) days of closing of the financing.

“The GrowLife team remains focused on reaching its goal to get current in its SEC reporting, achieve re-listing on the OTC Markets to enhance liquidity and build shareholder value with this additional financing,” said Marco Hegyi, CEO of GrowLife, Inc. Mr. Hegyi added, “Everyone has worked hard to secure financing on reasonable terms during this period to get GrowLife back on track. Much of this funding will be applied to enhance revenue and reach profitability.”

Further details in regards to the financing can be found in the Company’s Current Report on Form 8-K filed with the United States Securities and Exchange Commission on July 16, 2015.

For more information about GrowLife, please visit: www.growlifeinc.com. Additional commentary on the Company as well as the industry is also provided on Mr. Hegyi’s blog.

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.

Contact:

 

GrowLife, Inc.

Media Relations/Investor Relations:

GrowLife Communication Team

info@growlifeinc.com

GrowLife Announces Proposed Settlement of Stockholder Derivative Litigation

June 17, 2015 11:02

SEATTLE, WA, June 16, 2015 – GrowLife, Inc. (PHOT) announces that the United States District Court for the Central District of California has approved the following announcement of a proposed stipulated settlement of the stockholder derivative litigation set forth below against GrowLife, Inc.

NOTICE OF SETTLEMENT OF STOCKHOLDER DERIVATIVE LITIGATION 

TO: ALL PERSONS WHO OWN SHARES OF GROWLIFE, INC. (“COMPANY”) COMMON STOCK AS OF April 6, 2015 AND CONTINUE TO OWN SUCH SHARES (“COMPANY STOCKHOLDERS”):

THIS NOTICE IS GIVEN pursuant to an Order of the United States District Court for the United States District Court for the Central District of California (the “Court”), to inform you of a proposed stipulated settlement (the “Settlement”) in the above-captioned derivative action (the “Action”).

The Action involves claims, brought derivatively on behalf of the Company asserting that the Individual Defendants, while acting as members of the Company’s Board of Directors or as a Company officer, breached their fiduciary duties under Delaware law based on related facts and circumstances in the Securities Class Action, which allegations the defendants named in this action dispute.

YOU ARE HEREBY NOTIFIED THAT, a hearing will be held on August 17, 2015 at 10:00 a.m. before the Honorable Christina A. Snyder, at the United States District Court for the Central District of California, Western Division, 312 North Spring Street, Los Angeles, CA 90012-4701, for the purpose of determining whether the Settlement should be approved as fair, reasonable and adequate, and to consider other matters, including Plaintiff’s counsel’s application for an award of attorneys’ fees and expenses and whether a final judgment dismissing the Action should be entered. Because this is a stockholder derivative action brought for the benefit of GrowLife, Inc., no individual Company stockholder has the right to receive any individual compensation as a result of the settlement of this action. In accordance with the terms of the Settlement, and in consideration for certain broad releases, the Company has agreed to implement certain corporate-governance reforms, including, but not limited to, the creation of a new board-level committee to review and oversee the Company’s legal, regulatory, compliance, and government affairs functions; modifications to the charter of the Company’s Audit Committee to

strengthen the committee’s oversight of the Company’s disclosures and risk management process; modifications to the charter of the Company’s Compensation Committee; creation of Corporate Governance Guidelines, which will provide for, among other things, the election of a lead independent director, director term limits, and continuing education for directors; the constitution of a new Governance and Nominating Committee to replace the existing Nominating Committee to monitor the Company’s corporate governance guidelines; creation of the position of Compliance Officer who will be tasked with oversight and administration of the Company’s corporate governance policies; and changes to the Company’s Corporate Code of Business Conduct and Ethics.

IF YOU ARE AN OWNER OF COMPANY COMMON STOCK, YOUR RIGHTS MAY BE AFFECTED BY THE SETTLEMENT. This notice contains only a summary of the Action and the terms of the Settlement. If you are a current Company Stockholder, you may obtain a copy the Stipulation of Settlement.

Should you have any other questions regarding the proposed Settlement or the Action, please contact:

Plaintiff’s Lead Counsel: LIFSHITZ & MILLER

Any objection to the Settlement or to Plaintiffs’ application for an award of attorneys’ fees and expenses must be filed with the Clerk of the Court (Honorable Christina A. Snyder, United States District Court for the Central District of California, Western Division, 312 North Spring Street, Los Angeles, CA 90012-4701) in this case numbered 2:14−cv−03777, no later than July 27, 2015 and served by hand or first class mail (postage prepaid) for delivery by the same date on Plaintiff’s Counsel (at the address listed above) and on counsel for Defendants (at the address listed below):

Counsel for the Company and the Individual HORWITZ + ARMSTRONG, LLP

Defendants: John R. Armstrong

PLEASE DO NOT CALL OR WRITE THE COURT REGARDING THIS NOTICE.

DATED: June 1, 2015 BY ORDER OF THE UNITED STATES DISTRICT COURT

For more information about GrowLife, please 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 Announces Proposed Settlement for Pending Securities Litigation (Feb. 12, 2015)

June 12, 2015 12:17

Notice of a proposed settlement was filed February 9, 2015 with the U.S. District Court

SEATTLE, Feb 12, 2015 (BUSINESS WIRE) — GrowLife, Inc. (otcmkts:PHOT) announced today that on February 9, 2015, the Company and plaintiff’s counsel filed a Notice of Proposed Settlement with the Court presiding over the Consolidated Class Action lawsuits filed in 2014. The parties expect to file Notices of Proposed Settlement in the Court presiding over the Derivative Actions during February, 2015. The Company anticipates that the settlements will be documented and any necessary motions for Court approval of the settlements will be filed within the next 45 days.

For more information about GrowLife, please visit: www.growlifeinc.com. Additional commentary on the Company as well as the industry is also provided on Mr. Hegyi’s blog.

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 Announced Revenues of $2.1 Million for Third Quarter Ending September 30, 2014

November 20, 2014 12:15

SEATTLE–(Business Wire)–GrowLife, Inc. (OTC:PHOT), one of the largest cultivation service providers in the nation, reported today in its latest financial statement revenues of $2.1 million for the third quarter ending on September 30, 2014. GrowLife also reported gross margins were (8.5%), resulting from the Company’s decision to convert its high inventory level of $1.8 million from last quarter to working capital and reduce ending inventory at $800,000. General and administrative expenses were $1.9 million for the quarter, which included approximately $1.1 million in non-cash stock expenses.

 

“Our third quarter revenues delivered an impressive 60 percent growth compared to this time last year, which is when we first recognized revenue from major retail acquisition that occurred in June 2013,” said Marco Hegyi, President of GrowLife, Inc. “As we continue to work through challenges such as limited access to capital due to gray market trading and lawsuits, which are in negotiations, we elected to convert about three month’s of inventory into cash while optimizing sales.”

Mr. Hegyi, who assumed leadership over the Company in the second quarter 2014, has reduced operational expenses while increasing revenue. The Company has achieved record revenue of $6.7 million in the first nine months of 2014 over last year’s $2.9 million, representing 131% growth.

“Our solid revenue is attributed to customers and management who have remained confident in our future,” said Hegyi. “The Company’s growth is now moving closer to critical mass, where gross profit will offset expenses, and move us towards profitability.”

Noteworthy details from today’s extensive quarterly report are as follows:

Q3 2014 Highlights

  • Net revenue for the three months ended September 30, 2014 increased $792,000 to $2,105,000 as compared to $1,313,000 for the three months ended September 30, 2013.
  • Gross margin was $(179,000) as compared to $262,000 for the three months September 30, 2013.
  • The gross margin was (8.5%) for the three months ended September 30, 2014 as compared to 19.9% for the three months ended September 30, 2013. The decrease was due to selling our products at a higher discount and the liquidation of inventory at lower margins during the three months ended September 30, 2014.
  • General and administrative expenses for the three months ended September 30, 2014 increased $633,000 to $1,923,000 as compared to $1,290,000 for the three months ended September 30, 2013. Non-cash general and administrative expenses for the three months ended September 30, 2014 totaled $1,062,000.
  • Other expense for the three months ended September 30, 2014 was $35,664,000 as compared to other expense of $777,000 for the three months ended September 30, 2013. The expenses for the three months ended September 30, 2014 included loss on change – derivative liability warrants of $6,949,000 and interest expense of $28,715,000.
  • Net loss for the three months ended September 30, 2014 was $37,766,000 as compared to a net loss of $1,805,000 for the three months ended September 30, 2013 for the reasons discussed above.
  • Our cash used in operations for the three months ended September 30, 2014 was $411,000.

YTD 2014 Highlights

  • Net revenue for the nine months ended September 30, 2014 increased $3,806,000 to $6,745,000 as compared to $2,939,000 for the nine months ended September 30, 2013.
  • Cost of sales for the nine months ended September 30, 2014 increased $3,654,000 to $5,903,000 as compared to $2,249,000 for the nine months ended September 30, 2013.
  • Gross margin was $842,000 as compared to $690,000 for the nine months September 30, 2013. The gross margin was 12.5% for the nine months ended September 30, 2014 as compared to 23.5% for the nine months ended September 30, 2013.
  • General and administrative expenses for the nine months ended September 30, 2014 increased $3,138,000 to $6,684,000 as compared to $3,546,000 for the nine months ended September 30, 2013. Non-cash general and administrative expenses for the nine months ended September 30, 2014 totaled $3,359,000.
  • Our cash used in operations for the nine months ending on September 30, 2014 was $1,979,000.

GrowLife implemented additional changes to its business operations that were reflected in the third quarter, such as payroll, rent and other expense reductions, comprehensive market coverage, and the consolidation of disparate business divisions. These critical changes should be more apparent in the three months ended December 31, 2014.

For more information about GrowLife, please visit: www.growlifeinc.com. Additional commentary on the Company as well as the industry is also provided on Mr. Hegyi’s blog.

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. is publicly traded under the symbol PHOT.