|By PR Newswire||
|April 14, 2014 08:15 AM EDT||
WOODLAND HILLS, Calif., April 14, 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, has released an open letter to shareholders:
The SEC determined on April 10, 2014 to impose a temporary trading halt in GrowLife stock that may extend through April 24, 2014. This communication is to inform shareholders of the information available to the Company and to directly address, to the extent possible, several of the many questions that we have heard from shareholders and investors.
Did the Company have any advance notice of an impending SEC trading halt?
No, we did not have any advance knowledge, hint or warning. GrowLife learned of the SEC's actions at the same time that the market did on April 10th.
What caused the SEC to order a trading halt?
The answer is that we simply do not know and the SEC is not obligated to immediately provide information to GrowLife or its shareholders.
GrowLife is actively engaged in outreach to the SEC in an effort to first understand and then address the concerns. This is a normal process associated with informal SEC reviews and one for which GrowLife has retained specialized counsel in order to maintain communications with SEC. GrowLife will not engage in speculation. We will fully address any regulatory concerns when they are identified to us.
All that said, GrowLife has no knowledge of any irregularities that may warrant a suspension of trading in our securities and the fact remains that the SEC ordered a trading halt.
While the SEC review is ongoing, is the Company open and operating its businesses?
GrowLife is absolutely open for business in all of our stores and facilities. The GrowLife team has been working tirelessly to maintain, without missing a beat, the extraordinary team dedication and customer service that has allowed GrowLife to expand our business's interests in our unique market sector.
Will the SEC halt have an adverse impact on the value of GrowLife shares in the marketplace, even after trading resumes?
If history is any guide, there is likely to be a negative impact to GrowLife shares when trading is allowed to resume. GrowLife is a widely held security in our market sector and an industry leader. The Company will do everything in its power to minimize impact to shareholders and all of our business relationships. Most of all, we urge calm deliberate consideration by shareholders of information as it becomes available. We understand that is very difficult.
GrowLife developed as an industry leader in part because the Company team has a solid combination of customer commitment and business fundamentals. We do not welcome controversy; but we are not quitters. We are confident in who we are and what we do. The entire management team and Board of GrowLife is committed to continued transparency, addressing the concerns that we are made aware of and to continuing to build our extraordinary business. As part of our commitment, you will see a new website, noting our leadership team and continued focus on addressing customer and shareholder concerns.
Have "insiders" sold stock in GrowLife following the filing of the Company's annual report on Form 10K?
Yes. There is a very limited window of time after major regulatory filings where insiders are permitted to make controlled sales of stock. This is a very highly regulated process for anyone that has any material non-public information and it is an obligation that the management of the company takes quite seriously, and always has.
With any company that is publicly held, insiders may sell shares. Insiders are shareholders too. The company has taken what we consider many more than the required steps to make sure that everyone knows the rules and, to the extent under the company's control, the rules are followed.
That said, shareholders and investors should understand that insiders have lives, taxes, debts, and families. For example, company employees who received shares as part of their compensation in 2013 must under normal conditions address that tax obligation prior to April 15, 2014, creating for some the necessity to sell some of their shares. Unlike other shareholders, many of our officers and directors receive some if not all of their compensation in the form of stock. It is not, I repeat not, improper for insiders to sell a portion of their shares in the available windows, which occur after major regulatory disclosure events such as the March 31, 2014 filing by GrowLife of its annual report.
Did Robert Hunt sell a portion of his share ownership in GrowLife?
Yes. Management team member Robert Hunt sold a portion of his ownership in a manner that was known to the company and fully reported. Mr. Hunt sold his hydroponic store business to GrowLife last year where a large payment was in stock, which carries significant tax consequences. It is normal business practice for such obligations to be addressed by selling a portion of the acquired stock in a regulated manner. Mr. Hunt rightly sold a portion of his shares in the limited time available to senior management is decidedly ordinary and normal. We are not aware of any allegation that Mr. Hunt's stock sales were improper.
Did Elisabeth Wedam, wife to CEO and Chairman Sterling Scott, sell a portion of her ownership in GrowLife?
My wife (Elisabeth Wedam) and I invested upward of $2 million in SG Technologies and a good deal of time, more than two years ago now, before it was merged into what became GrowLife, Inc. When that merger was completed, we received no cash but both my wife and I separately received shares in GrowLife. Elisabeth and I have unfortunately been separated for many years but we remain married and her ownership in shares in her name is treated exactly as though they were mine. We are modest well-intentioned people, like most of GrowLife's shareholders. Elisabeth has dedicated most of her professional life to teaching, most recently English as a Second Language in public schools.
In the very limited window during which our insiders may sell under specific limits after the GrowLife 10K was filed, my wife sold a portion of her shares that amounted to less than 5% of our ownership and less than 1% of the outstanding shares of GrowLife. The process for my wife of actually preparing to even sell one share, began more than one year ago, and because I am CEO and Chairman, has always been very carefully scrutinized. The timing was unfortunate given the SEC actions, but the transaction itself is normal and ordinary. Of course the SEC knows that the Company had no knowledge of the surprise halt. For the record, this was the first sale of any GrowLife stock by myself or my wife.
Have any lawsuits been filed against GrowLife arising from the SEC trade halt?
No lawsuits have been filed against GrowLife to our knowledge. We understand that several plaintiff-oriented firms have issued press releases indicating that they have initiated an investigation of GrowLife. The Company has had no direct contact with any of these firms. Unfortunately, plaintiff law firm investigations, including class action efforts, are commonly raised whenever there has been an interruption in securities trading. In due course, should lawsuits eventually be filed, the Company will address and respond to allegations.
Conclusion and Commitment
I will remain 100% dedicated to getting to the bottom of SEC concerns and to keeping shareholders fully informed when we have reliable information. In the meantime, we respectfully ask that our shareholders and investors maintain a measure of calm and patience notwithstanding frustrations that we all feel in this trying time for GrowLife.
You have our assurances that when the SEC provides GrowLife with specific information on its concerns, that GrowLife will conduct itself with candor and full disclosure from the team at GrowLife.
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:
SOURCE GrowLife, Inc.
SYS-CON Events announced today that Juniper Networks (NYSE: JNPR), an industry leader in automated, scalable and secure networks, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Juniper Networks challenges the status quo with products, solutions and services that transform the economics of networking. The company co-innovates with customers and partners to deliver automated, scalable and secure network...
Mar. 27, 2017 03:45 PM EDT Reads: 1,367
DevOps is often described as a combination of technology and culture. Without both, DevOps isn't complete. However, applying the culture to outdated technology is a recipe for disaster; as response times grow and connections between teams are delayed by technology, the culture will die. A Nutanix Enterprise Cloud has many benefits that provide the needed base for a true DevOps paradigm. In his Day 3 Keynote at 20th Cloud Expo, Chris Brown, a Solutions Marketing Manager at Nutanix, will explore t...
Mar. 27, 2017 03:30 PM EDT Reads: 2,945
SYS-CON Events announced today that SoftLayer, an IBM Company, has been named “Gold Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. SoftLayer, an IBM Company, provides cloud infrastructure as a service from a growing number of data centers and network points of presence around the world. SoftLayer’s customers range from Web startups to global enterprises.
Mar. 27, 2017 02:45 PM EDT Reads: 1,937
SYS-CON Events announced today that Linux Academy, the foremost online Linux and cloud training platform and community, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Linux Academy was founded on the belief that providing high-quality, in-depth training should be available at an affordable price. Industry leaders in quality training, provided services, and student certification passes, its goal is to c...
Mar. 27, 2017 02:30 PM EDT Reads: 4,012
Some people worry that OpenStack is more flash then substance; however, for many customers this could not be farther from the truth. No other technology equalizes the playing field between vendors while giving your internal teams better access than ever to infrastructure when they need it. In his session at 20th Cloud Expo, Chris Brown, a Solutions Marketing Manager at Nutanix, will talk through some real-world OpenStack deployments and look into the ways this can benefit customers of all sizes....
Mar. 27, 2017 02:30 PM EDT Reads: 4,300
Deep learning has been very successful in social sciences and specially areas where there is a lot of data. Trading is another field that can be viewed as social science with a lot of data. With the advent of Deep Learning and Big Data technologies for efficient computation, we are finally able to use the same methods in investment management as we would in face recognition or in making chat-bots. In his session at 20th Cloud Expo, Gaurav Chakravorty, co-founder and Head of Strategy Development ...
Mar. 27, 2017 02:30 PM EDT Reads: 3,662
SYS-CON Events announced today that CA Technologies has been named “Platinum Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY, and the 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. CA Technologies helps customers succeed in a future where every business – from apparel to energy – is being rewritten by software. From ...
Mar. 27, 2017 02:00 PM EDT Reads: 2,039
Interoute has announced the integration of its Global Cloud Infrastructure platform with Rancher Labs’ container management platform, Rancher. This approach enables enterprises to accelerate their digital transformation and infrastructure investments. Matthew Finnie, Interoute CTO commented “Enterprises developing and building apps in the cloud and those on a path to Digital Transformation need Digital ICT Infrastructure that allows them to build, test and deploy faster than ever before. The int...
Mar. 27, 2017 01:30 PM EDT Reads: 1,192
In his session at @ThingsExpo, Eric Lachapelle, CEO of the Professional Evaluation and Certification Board (PECB), will provide an overview of various initiatives to certifiy the security of connected devices and future trends in ensuring public trust of IoT. Eric Lachapelle is the Chief Executive Officer of the Professional Evaluation and Certification Board (PECB), an international certification body. His role is to help companies and individuals to achieve professional, accredited and worldw...
Mar. 27, 2017 01:15 PM EDT Reads: 724
SYS-CON Events announced today that Loom Systems will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Founded in 2015, Loom Systems delivers an advanced AI solution to predict and prevent problems in the digital business. Loom stands alone in the industry as an AI analysis platform requiring no prior math knowledge from operators, leveraging the existing staff to succeed in the digital era. With offices in S...
Mar. 27, 2017 01:00 PM EDT Reads: 1,451
What if you could build a web application that could support true web-scale traffic without having to ever provision or manage a single server? Sounds magical, and it is! In his session at 20th Cloud Expo, Chris Munns, Senior Developer Advocate for Serverless Applications at Amazon Web Services, will show how to build a serverless website that scales automatically using services like AWS Lambda, Amazon API Gateway, and Amazon S3. We will review several frameworks that can help you build serverle...
Mar. 27, 2017 01:00 PM EDT Reads: 2,066
SYS-CON Events announced today that Interoute, owner-operator of one of Europe's largest networks and a global cloud services platform, has been named “Bronze Sponsor” of SYS-CON's 20th Cloud Expo, which will take place on June 6-8, 2017 at the Javits Center in New York, New York. Interoute is the owner-operator of one of Europe's largest networks and a global cloud services platform which encompasses 12 data centers, 14 virtual data centers and 31 colocation centers, with connections to 195 add...
Mar. 27, 2017 12:45 PM EDT Reads: 1,362
The Software Defined Data Center (SDDC), which enables organizations to seamlessly run in a hybrid cloud model (public + private cloud), is here to stay. IDC estimates that the software-defined networking market will be valued at $3.7 billion by 2016. Security is a key component and benefit of the SDDC, and offers an opportunity to build security 'from the ground up' and weave it into the environment from day one. In his session at 16th Cloud Expo, Reuven Harrison, CTO and Co-Founder of Tufin, ...
Mar. 27, 2017 11:30 AM EDT Reads: 6,760
SYS-CON Events announced today that T-Mobile will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. As America's Un-carrier, T-Mobile US, Inc., is redefining the way consumers and businesses buy wireless services through leading product and service innovation. The Company's advanced nationwide 4G LTE network delivers outstanding wireless experiences to 67.4 million customers who are unwilling to compromise on ...
Mar. 27, 2017 11:15 AM EDT Reads: 2,369
SYS-CON Events announced today that HTBase will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. HTBase (Gartner 2016 Cool Vendor) delivers a Composable IT infrastructure solution architected for agility and increased efficiency. It turns compute, storage, and fabric into fluid pools of resources that are easily composed and re-composed to meet each application’s needs. With HTBase, companies can quickly prov...
Mar. 27, 2017 10:30 AM EDT Reads: 3,009