Click here to close now.

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
Countless business models have spawned from the IaaS industry. Resell Web hosting, blogs, public cloud, and on and on. With the overwhelming amount of tools available to us, it's sometimes easy to overlook that many of them are just new skins of resources we've had for a long time. In his General Session at 16th Cloud Expo, Phil Jackson, Lead Technology Evangelist at SoftLayer, broke down what we've got to work with and discuss the benefits and pitfalls to discover how we can best use them to d...
"We have seen the evolution of WebRTC right from the starting point to what it has become today, that people are using in real applications," noted Dr. Natasha Tamaskar, Vice President and Head of Cloud and Mobile Strategy and Ecosystem at GENBAND, in this SYS-CON.tv interview at WebRTC Summit, held June 9-11, 2015, at the Javits Center in New York City.
Enterprises are turning to the hybrid cloud to drive greater scalability and cost-effectiveness. But enterprises should beware as the definition of “policy” varies wildly. Some say it’s the ability to control the resources apps’ use or where the apps run. Others view policy as governing the permissions and delivering security. Policy is all of that and more. In his session at 16th Cloud Expo, Derek Collison, founder and CEO of Apcera, explained what policy is, he showed how policy should be arch...
The 3rd International WebRTC Summit, to be held Nov. 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA, 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 15th International Cloud Expo, 6th International Big Data Expo, 3rd International DevOps Summit and 2nd Internet of @ThingsExpo. WebRTC (Web-based Real-Time Com...
It is one thing to build single industrial IoT applications, but what will it take to build the Smart Cities and truly society-changing applications of the future? The technology won’t be the problem, it will be the number of parties that need to work together and be aligned in their motivation to succeed. In his session at @ThingsExpo, Jason Mondanaro, Director, Product Management at Metanga, discussed how you can plan to cooperate, partner, and form lasting all-star teams to change the world...
Internet of Things (IoT) will be a hybrid ecosystem of diverse devices and sensors collaborating with operational and enterprise systems to create the next big application. In their session at @ThingsExpo, Bramh Gupta, founder and CEO of robomq.io, and Fred Yatzeck, principal architect leading product development at robomq.io, discussed how choosing the right middleware and integration strategy from the get-go will enable IoT solution developers to adapt and grow with the industry, while at th...
SYS-CON Events announced today that Harbinger Systems will exhibit at SYS-CON's 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Harbinger Systems is a global company providing software technology services. Since 1990, Harbinger has developed a strong customer base worldwide. Its customers include software product companies ranging from hi-tech start-ups in Silicon Valley to leading product companies in the US a...
SYS-CON Events announced today that ProfitBricks, the provider of painless cloud infrastructure, will exhibit at SYS-CON's 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. ProfitBricks is the IaaS provider that offers a painless cloud experience for all IT users, with no learning curve. ProfitBricks boasts flexible cloud servers and networking, an integrated Data Center Designer tool for visual control over the...
The 4th International Internet of @ThingsExpo, co-located with the 17th International Cloud Expo - to be held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA - announces that its Call for Papers is open. The Internet of Things (IoT) is the biggest idea since the creation of the Worldwide Web more than
The time is ripe for high speed resilient software defined storage solutions with unlimited scalability. ISS has been working with the leading open source projects and developed a commercial high performance solution that is able to grow forever without performance limitations. In his session at Cloud Expo, Alex Gorbachev, President of Intelligent Systems Services Inc., shared foundation principles of Ceph architecture, as well as the design to deliver this storage to traditional SAN storage co...
"We got started as search consultants. On the services side of the business we have help organizations save time and save money when they hit issues that everyone more or less hits when their data grows," noted Otis Gospodnetić, Founder of Sematext, in this SYS-CON.tv interview at @DevOpsSummit, held June 9-11, 2015, at the Javits Center in New York City.
"CenturyLink brings a full suite of services to the table and that enables us to be an IT service provider," explained Jeff Katzen, Director of the Cloud Practice at CenturyLink, in this SYS-CON.tv interview at 16th Cloud Expo, held June 9-11, 2015, at the Javits Center in New York City.
17th Cloud Expo, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Meanwhile, 94% of enterprises ar...
DevOps is about increasing efficiency, but nothing is more inefficient than building the same application twice. However, this is a routine occurrence with enterprise applications that need both a rich desktop web interface and strong mobile support. With recent technological advances from Isomorphic Software and others, it is now feasible to create a rich desktop and tuned mobile experience with a single codebase, without compromising performance or usability.
"In the IoT space we are helping customers, mostly enterprises and industry verticals where time-to-value is critical, and we help them with the ability to do faster insights and actions using our platform so they can transform their business operations," explained Venkat Eswara, VP of Marketing at Vitria, in this SYS-CON.tv interview at @ThingsExpo, held June 9-11, 2015, at the Javits Center in New York City.