Growlife Inc (OTCMKTS:PHOT) Surging On California Expansion

Sentiments in the overall cannabis sector turning bullish might as well be the catalyst set to trigger a bounce back in Growlife Inc (OTCMKTS:PHOT) from this year’s lows. The stock sentiments among investors also appear to have turned bullish at the backdrop of improving fundamentals.

GrowLife Price Analysis

However, the stock is not yet an out of the woods, despite a recent 50% rally from this year’s lows. The stock remains engulfed in a long-term bearish trend and in dire need of groundbreaking developments to spearhead a rally to 52-week highs. PHOT Daily ChartFor starters, the stock needs to rally and stabilize above the $0.02 mark to affirm the emerging uptrend. Above the $0.02 mark, the stock could rally to the $0.03 mark seen as the immediate resistance level.A breach of the critical resistance level should open the door for bulls to push the stock to 52-week highs of $0.05, achieved at the start of the year. Below the $0.02 mark, the stock remains susceptible to further declines given that short sellers stay in firm control.

About Growlife

Growlife is one of the largest cultivation service provider for organic herbs as well as plant-based medicines. The company supplies farming soil, hydroponics equipment, and natural plant nutrients to support the specialty grow operations in the U.S. Its equipment product line includes indoor lighting systems as well as growing mediums and accessories.[embed]https://www.youtube.com/watch?v=eikfArKjQ50&t=2s[/embed]

California Expansion Drive

Growlife has shone to life after coming under pressure in the first half of the year on announcing plans to expand and grow its footprint in North America. The company is fresh from adding a new retail outlet in Los Angeles that will act as its e-logistics center for targeting customers in the West Coast.The opening of the logistics center paves the way for the company to embed itself in one of the largest and fastest growing cannabis market in the world. Cannabis sales in California is set to hit highs of $3.7 billion this year and highs of $5 billion next year. The opening of the retail outlet will allow the company to service the needs of people looking to venture into cannabis cultivation operations in the state.

“This new fulfillment center, which will also serve as a commercial outbound sales center, is not only an exciting addition to our company but will play a pivotal role in Growlife’s expansion and growth strategy as we capture more of this emerging market,” said GrowLife CEO Marco Hegyi.

According to the Chief Executive Officer opening a retail outlet in one of the largest cannabis markets underscores the scope of the company’s’ market reach. The fact that the company has achieved the scope with minimal costs underscores its commitment to value generation.The new location should allow the company to fulfill the needs of the ever-expanding customer base. In return, Growlife should be able to generate, significant value as new legalized markets continue to emerge and stabilize.

Capital Raise

In a bid to raise additional capital to facilitate completion of the vertical grow system development and go to market programs, the company has announced a rights offering. The right offering presents an opportunity for shareholders on record as of October 12, 2018, to invest directly through the purchase of units made up of common stock and additional warrants.

“[…] GrowLife hopes to continue to capture market share through the building of our sales and marketing programs which require additional capital. This opportunity allows our shareholders to invest in a way that larger, more institutional investors do and we hope this excites them for the future,” said Mr. Hegyi.

What Next For Growlife

GrowLife has experienced tremendous growth over the past one year at the back of an aggressive expansion drive that has seen it set foot in some of the fastest growing cannabis markets. The company is also entering the second and third phases for testing AI software development as it seeks to come up with new systems for reducing costs associated with large-scale cannabis production.Presence in one of the world’s largest cannabis market is a development that affirms the company’s long-term prospects as it continues to operate in a niche market in the multi-billion sector. The company’s e-commerce and logistics division has grown by more than 15x over the past one year expected to be a key driver of revenue going forward.After a recent spike higher, GrowLife looks set to continue climbing high as investors take note of improving underlying fundamentals.We will be updating our subscribers as soon as we know more. For the latest updates on PHOT, sign up below!Disclosure: We have no position in PHOT and have not been compensated for this article.