|By PR Newswire||
|April 24, 2014 05:17 PM EDT||
WOODLAND HILLS, Calif., April 24, 2014 /PRNewswire/ -- GrowLife, Inc. (PHOT), the recognized leader in specialty hydroponics and an essential facilitator of the grower marketplace, has posted an open letter to shareholders from its Chairman and CEO, Sterling C. Scott.
As GrowLife prepares to resume trading, I would like to personally reinforce the company's strength, growth potential and commitment to transparency. Below, you will find candid responses to key questions regarding the SEC's decision to temporarily halt, and now support the resumption, of trading of GrowLife's stock.
What can the Company report involving the temporary suspension in trading in shares of GrowLife imposed by the SEC?
GrowLife understands that trading in GrowLife securities will resume during market hours on Friday, April 25, 2014. The SEC has informed GrowLife through counsel that it is not the subject of an informal or formal investigation. The SEC has not requested any documents from the company or its Board. Nor have they issued GrowLife any subpoenas or broad requests for information.
It appears, from counsel's discussions with the SEC's staff, that the SEC suspension was prompted by concerns that some 3rd party holder(s) of GrowLife stock may have been planning to engage in some form of manipulative promotional activity. GrowLife does not have any more specific information regarding this matter. On behalf of GrowLife, I can confirm that GrowLife was not involved in the planning of any potentially manipulative promotional activity nor does it have any knowledge of any planned 3rd party promotional activity of any kind or type, proper or improper.
GrowLife has conveyed to the SEC its willingness to make management available to the SEC to answer questions. In response, we were informed that no meeting or additional information from the Company was required at this time. SEC staff reiterated that there was no formal or informal investigation of GrowLife in process.
What is going on at GrowLife?
We have conducted our own internal review of policies and procedures to ensure we are in full compliance, and have positioned the company for future growth.
The Board of Directors of GrowLife has been actively working with management to establish even higher levels of oversight and checks/balances in place throughout the Company. This process began back in late 2013 and early 2014 with the formation of a majority of independent members to the Board of Directors, including our welcome of outside directors Anthony Ciabattoni, Jeff Giarraputo and Alan Hammer to the Board, and the planning of committees on the Board of Directors to actively focus on Audit and Compliance, Compensation, and Mergers & Acquisitions. These are time-intensive processes that are essential to the sustainable teamwork and leadership that is characteristic of all of the strongest and most capable companies worldwide.
We have been actively developing a GrowLife 2.0 business model and go-forward strategy to propel the company, and the industry, forward. Details will be announced next week. We invite our shareholders to follow closely as GrowLife 2.0 is deployed in what we believe will be the first large scale blending of experienced world class management and the legal cannabis market in the U.S.
Our corporate team has responded to thousands of investor inquiries by phone and email arising from the trading halt since April 10th. GrowLife could not have anticipated the enormous volume of incoming calls and emails. We appreciate the patience and understanding that many shareholders exhibited to our team. We expect that call volume will increase even further as trading resumes tomorrow. We have responded with a hotline for investors by phone at (866) 632-3111 and by email at [email protected].
Our accounting team, led by CFO John Genesi, has been actively engaged in preparation of GrowLife's quarterly report for filing with the SEC and announcement to shareholders timely on or before May 15, 2014.
In summary, GrowLife has sharpened its focus on boosting business operations and developing a strong go-forward plan, while working to understand the concerns of the SEC, and responding with candor and integrity to more than a thousand shareholder inquiries. All GrowLife stores remain open for business. Our retail managers and employees have continued actively working toward another record quarter for sales in our business.
Does GrowLife believe that it can continue to prosper and grow the Company for the benefit of shareholders?
We believe intensely in a positive future for GrowLife and our industry. Extraordinary opportunities do not, however, come without risk.
GrowLife management continues to believe that the legal cannabis market in the United States is going mainstream. We are dedicated to continuing to lead the industry with the strongest management team and a business model that we expect to be validated and improved over and over in the years to come. Adversity only makes us smarter and stronger, more committed to realizing the extraordinary opportunity that our investors have allowed us to lead. We will continue to manage and navigate those risks with integrity and transparency to the very best of our ability.
Sterling C. Scott
Chairman and CEO
About GrowLife, Inc. GrowLife, Inc. (PHOT) (www.growlifeinc.com) is the recognized leader in specialty hydroponics and an essential facilitator of the grower marketplace, through our nationwide retail network, as well as online sites Greners.com, Phototron.com and StealthGrow.com.
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.
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SOURCE GrowLife, Inc.
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