Growlife Inc. (OTCMKTS:PHOT) is at the point where all conditions favor growth. Notably, the United States just promulgated the 2018 Farm Bill which legalizes cultivation and distribution of hemp. In particular, Growlife sees a whole new horizon full of growth opportunities with the new law.
A new market segment for Growlife
According to an official commentary on the passing of the Bill, Growlife expects a sharp increase in hemp-related products. Interestingly, the firm noted that it is already experiencing an influx of customers. Notably, customers are looking for scaling solutions for hemp cultivation. In particular, the firm is already witnessing an outsized demand specifically for EZ-Clone and Growlife soil. These are solutions for mounting cultivation facilities for hemp.
According to Marco Hegyi, GrowLife CEO, legalization of hemp cultivation “presents a new market segment” for Growlife. Notably, there are large hemp cultivators who are demanding around half a million EZ-Clones. Just recently acquired, EZ-Clone is proving a good transaction so far, especially after the 2018 Farm Bill.
Interestingly, all these growth opportunities are availing just when Growlife is enjoying maximum support from stockholders. After a recent Annual Meeting of Stockholders, Growlife announced that it received near-unanimous support for its growth strategies. Notably, the stockholders participated overwhelmingly in the voting rounds, something Hegyi found humbling.
Strong stockholder support
“We had a significant majority of shareholders approve the motions put forth, including a prospective reserve split in shares enabling our company to seek more high-quality investment in the future,” said Hegyi.
Meanwhile, Growlife Inc. revealed the details of the recently closed rights offering. In particular, the offering specifically aimed at providing capital for various growth-related developments. Notably, the firm announced that the offering was successful. In particular, they were able to raise gross proceeds of a little over $2.5 million.
Interestingly, the rights offering mainly, aimed at giving at giving shareholders “the opportunity to invest directly in the company at a set price, with additional warrants to support the company’s capital raise.” Again, Hegyi thanked the strong support the firm is receiving from the shareholders towards achieving company goals. As such, the CEO promised to continue delivering value to the stockholders.