|By PR Newswire||
|January 31, 2014 07:15 AM EST||
WOODLAND HILLS, Calif., Jan. 31, 2014 /PRNewswire/ -- GrowLife, Inc. (OTCBB: PHOT), a diversified company operating in the legal cannabis industry which develops, markets and deploys products and services of legal cannabis, is pleased to announce that Organic Growth International, LLC ("OGI"), its joint venture with CANX USA, LLC, has entered into an agreement to purchase a 40% equity stake in RXNB Inc. ("RXNB"), to sell and distribute RXNB proprietary technologies globally, and share profits related to technology licensing, subject to the approval of the GrowLife Board of Directors. GrowLife currently has a 45% ownership interest in OGI, with conditions under which it can gain majority interest.
RXNB is an investment company with holdings in drug formulation, manufacturing, and distribution. The company represents a recent roll-up of several independent companies in the pharmaceutical and nutraceutical market. RXNB has numerous pending patents in the field of THC research and development. RXNB has a portfolio valuation of $110 million dollars and approximately $27.5 million dollars in annual revenue.
"GrowLife is extremely pleased to add RXNB to our growing portfolio of holdings," stated Sterling Scott, CEO, GrowLife, Inc. "RXNB, with its extensive intellectual property, will serve as the underpinning to our strategic business model, which includes agricultural, medical, sales and distribution technologies to support the legal medical and recreational marijuana industry. RXNB has proven itself with a diversified revenue base in excess of $27 million in annual gross revenue; a total that we at GrowLife feel is tremendous given the rapidly expanding marijuana category ahead. GrowLife's share of earnings will obviously be tendered going forward but we are excited to have a stake in a business that generated over $27 million in its last fiscal year."
RXNB possesses proprietary, cutting-edge systems in the field of agriculture, applicable to medical marijuana. In particular, these technologies focus on Current Good Manufacturing Practices (cGMP) manufacturing and growing process of medicinal marijuana. cGMP refers to the Current Good Manufacturing Practice regulations enforced by the US Food and Drug Administration (FDA). cGMPs provide for systems that assure proper design, monitoring, and control of manufacturing processes and facilities, which assures the identity, strength, quality, and purity of drug products. RXNB technologies will accelerate plant growth, allow perpetual grow cycles of about 35 days and protect plants from adulterants, which will yield greater harvests. "GrowLife expects in the near future that medical marijuana production will be held to cGMP standards," stated Marco Hegyi, President of GrowLife. "Establishing an innovative, scalable platform today will ensure and sustain GrowLife as a technology leader in the medical marijuana industry through its explosive future growth tomorrow."
RXNB has a pharmacy division, which dispenses prescription drugs direct to approximately 50,000 patients per month in the US. RXNB owns a distribution network, which supplies approximately 2,700 clinicians with tailored functional medicine across the US. It operates its own call center and owns software technologies in the field of tailored specialty drugs and batch record keeping in compliance with USP 797. "GrowLife intends to take advantage of the infrastructure to better service its clients on the GrowLife platform at a national level," further stated Hegyi. In addition, it owns software technologies, which maintain and perform features of compliant monthly auto shipment processes. It has a grass roots national sales force, which calls upon, sells and educates physicians nationwide.
Final consummation of the agreement will be subject to further due diligence on the part of GrowLife and OGI and will require inclusion on an audited basis after closing. At that time, final terms will be published.
A full 8-K detailing the Agreement was released January 30, 2014.
From time to time, GrowLife will provide market updates and news via its websites GrowLifeInc.com, Cannabis.org or the Company's Facebook page at https://www.facebook.com/tellthetruthfederalgovernment
About GrowLife, Inc.
GrowLife, Inc. (PHOT) (www.growlifeinc.com) develops, markets and deploys products and services addressing the needs of legal cannabis growing and retail operations, including hydroponic growing equipment and retail support software. The Company provides these solutions in our nationwide retail network, as well as online sites Greners.com, Phototron.com and StealthGrow.com. The Company also operates the political and social forum, Cannabis.org
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.
Investor Relations Contact:
Kurt Divich (702) 396-1000
SOURCE GrowLife, Inc.