SEC’s Temporary Suspension of GrowLife (PHOT) Stocks

Home growers of medical marijuana will find no shortage of gardening supplies available made just for their crops. Our marijuana litigators are seeing many bogus suppliers.

One company that supplies equipment and supplies for the home grower is GrowLife, (PHOT) headquartered in Kirkland, Washington. With stores in Encino, CA, Portland, ME and Calgary, Alberta in Canada, GrowLife offers hydroponic equipment, nutrients, soils, lighting, indoor cultivation equipment and plant growing systems.

On September 19, 2018, the company issued a press release announcing a rights offering, allowing company shareholders to acquire additional shares of GrowLife common stock. Calling it The Offering, the company gives shareholders the opportunity to invest in the company to help it raise additional funding and continue to expand. This stock currently trades at around $0.0122, and is considered a “penny stock” or “microcap stock.” However, because these stocks are smaller, they don’t meet the minimum for trading on a national exchange like the New York Stock Exchange or the NASDAQ. Information may be more difficult to find.

Many smaller companies offer penny or microcap stocks, and are considered legitimate, but these stocks are considered very risky. Stock prices can be more volatile, and any large amount of trading can change the price. One possible red flag is the suspension of the company’s trading.  Silver Law Group frequently represents penny stock victims.

In GrowLife’s case, the SEC temporarily suspended their trading on April 10, 2014, due to questions about the accuracy of information that was available, and “potentially manipulative transactions” in the company’s common stock. Stock trading resumed on April 25, 2014. (GrowLife was, at the time,  headquartered in Woodland Hills, CA.) The company is still actively trading and actively conducting business.

Is A Marijuana Investment In Your Future?

If you’ve invested in a “pot stock” and aren’t sure if it’s legitimate, contact us for a free pot stock consultation. Silver Law Group represents investors in securities and investment fraud cases. Our lawyers are admitted to practice in New York and Florida, and represent investors nationwide to help recover investment losses due to stockbroker misconduct and other investment-related wrongdoing.  Most cases handled on a contingent fee basis. This means that you won’t any pay legal fees unless we are successful. Call us toll free at 800-975-4345, or use our online contact form to get in touch.