Currently, many of the cannabis stocks are on a downward trend retreating from the brief period of excitement after the November election which elevated cannabis stock prices for just about the entire sector. The excitement did not last very long. Profit-taking, short-selling, and a general sense that the initial hysteria caused many of the stock to be over-bought. Add to that the downward market pressure generated by the mixed signals that the incoming Trump administration has been putting out regarding the enforcement of federal marijuana laws, and it’s no wonder investors are becoming a bit uneasy about initiating any new investments in the sector. Some companies in the sector are having a tough time attracting new investors.
For GrowLife Inc, this slump in the cannabis sector hasn’t had much of a downward effect on its stock price. The stock has been trading sideways below a resistance level of $.02 since early April of 2016, and didn’t really experience much of a bump after the November 2016 election. Even so, the company continues to move forward with its expansion plan.
A little background on the company for those who are not familiar with it. GrowLife’s aim is to become the nation’s largest cultivation service provider for cultivating organics, herbs and greens and plant-based medicines. Its mission is to best serve more cultivators in the design, build-out and expansion of their facilities with products of high quality, exceptional value and competitive price. Through a nationwide network of local representatives, regional centers and its e-Commerce team, GrowLife provides essential goods and services including media (farming soil), industry-leading hydroponics equipment, plant nutrients, and thousands more products to specialty grow operations in 17 states. The company is headquartered in Seattle, WA, and was founded in 2012.
GrowLife Inc recently announced on May 4, 2017, the formation of an indoor growing industry advisory board. The purpose of the Board is to offer a high level of expertise in reviewing industry-related business opportunities for the Company. The initial four advisory board members include:
Mr. William Andreozzi, former CTO of Weedmaps.
A hands-on experienced technology executive that is passionate about leveraging innovative technologies to solve complex problems. He’s the type of person that will help with an idea, scope out the solution, and fearlessly tackle the challenge.
Mr. William Blackburn, CEO of EZ-CLONE Enterprises Inc.
Mr. Blackburn is the creator of the EZ-CLONE Plant Cloning System and Founder/President of EZ-CLONE Enterprises Inc. He has been in the hydroponic industry since 1999, specializing in aeroponic propagation with extensive experience in manufacturing, distribution and retail sales. His latest cloning system can grow over 500 plants in parallel.
Mr. Corey Buffkin, founder and Director of Cultivation of Greenman Cannabis.
Mr. Buffkin owns and operates licensed marijuana businesses in Colorado, Nevada, and Oregon. One of his indoor operations in Colorado covers almost 120,000 square feet. His industry awards also recognize his production quality; make him well versed in large-scale cultivation and knowledgeable in the retail aspects of the cannabis business.
Mr. Chris Herghelegiu (Herk), investor in several industry-related growing operations.
Mr. Herghelegiu brings non-stop energy and experience from a multitude of companies in the cannabis space that he has led and contributed to cultivation, extraction, product development, technology and patient acquisition. He has held different roles in each operation from investor to CEO.
GrowLife’s advisory board brings a highly-qualified external perspective and priceless expertise to help the Company gain the unique benefits and advantages needed to support the Company’s vision. The advisory board’s independence avoids internal daily pressures and invites unparalleled leadership to game changing initiatives. Mr. Marco Hegyi, CEO and Chairman of GrowLife, Inc. stated:
“I have known and admired these respected individuals for years and determined it was time for GrowLife to form a team of such professionals. Each member has proven leadership in their own organizations and now to have them support GrowLife instills even greater confidence in our future.”
On the financial front, the latest quarterly financial statements ending March 31, 2017 do show revenues of $467,000. However, the Company is operating at a Net Loss of $177,000. The balance sheet shows $84,000 in cash, with $514,000 in total assets, and $4,289,000 in liabilities. Current market capitalization stands at $13.79 million, on 2.03 Billion shares outstanding as of June 23, 2017
Clearly, GrowLife Inc has some work to do to attract new investors. The over-whelming liabilities and stock dilution are a burden on the Company. The weak cash position inhibits expansion. On the bright side, the company does show a steady flow of revenues. And ultimately, the cannabis industry is growing, so there is potential for the Company to grow with it. Be sure to check out our prior coverage on PHOT. We will be updating our subscribers as soon as we know more. For the latest updates on PHOT, sign up below!
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Disclosure: We have no position in PHOT and have not been compensated for this article.