Welcome!

News Feed Item

GrowLife's CEO Reinforces Company's Business Strength, Growth Potential and Commitment to Transparency

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.

Dear Shareholders,

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. 

Respectfully yours,
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.

Shareholder Support Hotline:
(866)632-3111
[email protected]

Investor Relations Contact:
Integrity Media
(702) 396-1000
[email protected] 

SOURCE GrowLife, Inc.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
The cloud promises new levels of agility and cost-savings for Big Data, data warehousing and analytics. But it’s challenging to understand all the options – from IaaS and PaaS to newer services like HaaS (Hadoop as a Service) and BDaaS (Big Data as a Service). In her session at @BigDataExpo at @ThingsExpo, Hannah Smalltree, a director at Cazena, provided an educational overview of emerging “as-a-service” options for Big Data in the cloud. This is critical background for IT and data professionals...
Internet of @ThingsExpo has announced today that Chris Matthieu has been named tech chair of Internet of @ThingsExpo 2017 New York The 7th Internet of @ThingsExpo will take place on June 6-8, 2017, at the Javits Center in New York City, New York. Chris Matthieu is the co-founder and CTO of Octoblu, a revolutionary real-time IoT platform recently acquired by Citrix. Octoblu connects things, systems, people and clouds to a global mesh network allowing users to automate and control design flo...
You are moving to the Cloud. The question is not if, it’s when. Now that your competitors are in the cloud and lapping you, your “when” better hurry up and get here. But saying and doing are two different things. In his session at @DevOpsSummit at 18th Cloud Expo, Robert Reeves, CTO of Datical, explained how DevOps can be your onramp to the cloud. By adopting simple, platform independent DevOps strategies, you can accelerate your move to the cloud. Spoiler Alert: He also makes sure you don’t...
President Obama recently announced the launch of a new national awareness campaign to "encourage more Americans to move beyond passwords – adding an extra layer of security like a fingerprint or codes sent to your cellphone." The shift from single passwords to multi-factor authentication couldn’t be timelier or more strategic. This session will focus on why passwords alone are no longer effective, and why the time to act is now. In his session at 19th Cloud Expo, Chris Webber, security strateg...
"We are an all-flash array storage provider but our focus has been on VM-aware storage specifically for virtualized applications," stated Dhiraj Sehgal of Tintri in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Redis is not only the fastest database, but it has become the most popular among the new wave of applications running in containers. Redis speeds up just about every data interaction between your users or operational systems. In his session at 18th Cloud Expo, Dave Nielsen, Developer Relations at Redis Labs, shared the functions and data structures used to solve everyday use cases that are driving Redis' popularity.
The WebRTC Summit New York, to be held June 6-8, 2017, at the Javits Center in New York City, NY, announces that its Call for Papers is now open. Topics include all aspects of improving IT delivery by eliminating waste through automated business models leveraging cloud technologies. WebRTC Summit is co-located with 20th International Cloud Expo and @ThingsExpo. WebRTC is the future of browser-to-browser communications, and continues to make inroads into the traditional, difficult, plug-in web co...
Enterprise IT has been in the era of Hybrid Cloud for some time now. But it seems most conversations about Hybrid are focused on integrating AWS, Microsoft Azure, or Google ECM into existing on-premises systems. Where is all the Private Cloud? What do technology providers need to do to make their offerings more compelling? How should enterprise IT executives and buyers define their focus, needs, and roadmap, and communicate that clearly to the providers?
Amazon has gradually rolled out parts of its IoT offerings, but these are just the tip of the iceberg. In addition to optimizing their backend AWS offerings, Amazon is laying the ground work to be a major force in IoT - especially in the connected home and office. In his session at @ThingsExpo, Chris Kocher, founder and managing director of Grey Heron, explained how Amazon is extending its reach to become a major force in IoT by building on its dominant cloud IoT platform, its Dash Button strat...
"We are a custom software development, engineering firm. We specialize in cloud applications from helping customers that have on-premise applications migrating to the cloud, to helping customers design brand new apps in the cloud. And we specialize in mobile apps," explained Peter Di Stefano, Vice President of Marketing at Impiger Technologies, in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Complete Internet of Things (IoT) embedded device security is not just about the device but involves the entire product’s identity, data and control integrity, and services traversing the cloud. A device can no longer be looked at as an island; it is a part of a system. In fact, given the cross-domain interactions enabled by IoT it could be a part of many systems. Also, depending on where the device is deployed, for example, in the office building versus a factory floor or oil field, security ha...
In addition to all the benefits, IoT is also bringing new kind of customer experience challenges - cars that unlock themselves, thermostats turning houses into saunas and baby video monitors broadcasting over the internet. This list can only increase because while IoT services should be intuitive and simple to use, the delivery ecosystem is a myriad of potential problems as IoT explodes complexity. So finding a performance issue is like finding the proverbial needle in the haystack.
The idea of comparing data in motion (at the sensor level) to data at rest (in a Big Data server warehouse) with predictive analytics in the cloud is very appealing to the industrial IoT sector. The problem Big Data vendors have, however, is access to that data in motion at the sensor location. In his session at @ThingsExpo, Scott Allen, CMO of FreeWave, discussed how as IoT is increasingly adopted by industrial markets, there is going to be an increased demand for sensor data from the outermos...
"Qosmos has launched L7Viewer, a network traffic analysis tool, so it analyzes all the traffic between the virtual machine and the data center and the virtual machine and the external world," stated Sebastien Synold, Product Line Manager at Qosmos, in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Between 2005 and 2020, data volumes will grow by a factor of 300 – enough data to stack CDs from the earth to the moon 162 times. This has come to be known as the ‘big data’ phenomenon. Unfortunately, traditional approaches to handling, storing and analyzing data aren’t adequate at this scale: they’re too costly, slow and physically cumbersome to keep up. Fortunately, in response a new breed of technology has emerged that is cheaper, faster and more scalable. Yet, in meeting these new needs they...