An SEC filing is showing that GrowLife has added another $68,000 of investment to the $14.5 million in equity and debt financing they raised in 2014 over five reported financings. GrowLife sells mini-hydroponic greenhouses, horticultural seeds, mineral nutrient solutions, growing mediums and germination kits, but the biggest part of their business seems to be related to cannabis.
In 2014The company had $8.7 million in revenue for 2014 up from $948,000 in 2013. Growlife trades on the Over-The-Counter (OTC) market under symbol PHOT and has a $21.98 million market cap.
Last spring, the SEC temporarily halted trading of GrowLife for suspicious trading and in August four stock promoters were charged for manipulating penny stocks, including shares of GrowLife. The New York Post recently reported that the SEC is investigating several pot-related companies in a broad sweep of the sector.
One of the problem for investors in the space is that banks are reluctant to engage with cannabis companies as they need to follow ‘Know Your Customer’ and Anti Money Laundering requirements. However, many cannabis companies are operating with cash transactions exactly because they have banking difficulties and this raises red flags.
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