Growlife Inc (OTCMKTS:PHOT) shares jumped 33.91% on Monday to $0.0154 and an additional 0.65% in after-hours trading. Share prices have been trading in a 52-week range of $0.00 to $0.09. The company has a market cap of $18.42 million at 1.20 billion shares outstanding.
Growlife Inc is a company that provides goods, including media, hydroponics equipment, organic plant nutrients, and various other products to specialty grow operations across the United States. It also distributes and sells over 3,000 products through its e-commerce distribution channel, Greners.com, and through its regional retail storefronts. Apart from that, the company erves a community of commercial and urban cultivators growing specialty crops, including organics, greens and plant-based medicines.
A SEC filing revealed that Growlife Inc Chairman Marco Hegyi purchased 4,000,000 shares of the company’s stock last week. The stock was purchased at an average cost of $0.01 per share, with a total value of $40,000.00, with the chairman now owning 5,000,000 shares in the company, valued at $50,000.
Apart from that, Growlife Inc also filed form D announcing $90,000 equity financing which is 100% of the funding offer filed in July this year, reflecting significant investor interest in the company. Keep in mind that other companies in this sector average at 85.50% financing, although it’s also worth noting that the offer is 94.16% smaller than the industry average of $1.54 million in financing.
Still, the additional funds could help Growlife Inc stay in business and expand its potential. The high turnout could also attract other investors such as venture capitalists, funds, and angel investors while positive PR could bring interest from leasing firms, ensuring shareholders that the company can stay well-financed.
It’s also worth noting that cannabis firms are gaining traction ahead of this year’s elections in anticipation of legislation that can allow these companies to expand their market. The company’s stock was previously suspended and has only resumed trading earlier this year.
There is great demand for developing indoor cultivation skills. Although some scattered information can be found, there are few complete and affordable growing solutions, such as GrowLife Cube, which include hydroponic techniques that are ecologically sound, start-up equipment and regular supplies to support production from amateur to professional growers,” remarked CEO Marco Hegyi.
A few months back, Growlife Inc launched GrowLife Cube, which is a new subscription service for emerging indoor growers. This is configured to produce different size crops, with equipment packages starting at $499 and monthly supplies and consulting services as well.
In November, voters in Arizona, Arkansas, California, Florida, Maine, Massachusetts, Montana, Nevada and North Dakota will decide on whether to legalize either the recreational use or the medical use of marijuana. Hopes are high in California with Proposition 64 set to allow individuals 21 years of age and older to possess and use up to an ounce of marijuana and would allow pot shops to sell cannabis for recreational use. If the proposition passes, the market for cannabis in California could triple overnight and support the growth of urban growers, which would then significantly boost demand for Growlife Inc products.
The stock’s daily chart reveals that price is bouncing off the very bottom of the range with significant volume. As it is, there’s not much to lose for Growlife Inc shares but plenty of room on the upside, especially once it breaks the near-term resistance at $0.02. From there, share prices could aim for the next area of interest at $0.03, pending the results of the November polls.
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