GrowLife Inc (OTCMKTS:PHOT) Heats Up Again

GrowLife Inc (OTCMKTS:PHOT) made a strong run at the end of last month by climbing 100% to end 2016 at just under $.02 a share. PHOT built a solid base of support at the $.01 level and is now bumping up against the $.02 resistance zone. This $.01 to $.02 range had been the primary trading range for PHOT in 2016. Investors are now asking if we're going to see a January rally allow PHOT to breakout of this trading range and challenge the $.085 highs seen back in February of last year. After all, PHOT does a history of explosive moves and that makes the latest action all the more interesting.First up, a little background on the company. 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.The latest news from the company is that it launched the GrowLife Retail License Program. GrowLife’s Retail License Program repositions the Company to serve States where laws allow marijuana cultivation, as well as addressing the increasing demand for indoor farming of healthier and localized fruits and vegetables. This program will work with independent business partners to license the GrowLife brand and work with the Company’s core team to open GrowLife branded stores. These stores will be either new stores or stores within existing retail outlets, creating a GrowLife store-within-a-store to introduce hydroponics products to their customers.The GrowLife Retail License Program offers new and existing hydroponic and home supply stores the ability to brand their stores as GrowLife and gain access to GrowLife’s 15,000 product hydroponic supply chain, which will provide their customers with local access to hydroponics equipment and supplies for popular indoor controlled farming. The program will start with Fairmount Hardware, an Ace Hardware franchise store in Philadelphia. Here, hydroponic customers will find hydroponic equipment and supplies in the GrowLife store-within-a-store. GrowLife CEO Marco Hegyi said:

“After exploring this License Program for sometime with several licensee candidates, we are excited to begin the roll-out in Philadelphia with Fairmount Hardware, an Ace Hardware franchise, and extend GrowLife’s coverage for our customers. Our shareholders will also benefit with GrowLife’s financial shift from a fixed to variable-cost business model. The demand for hydroponic gardening and farming, which continues to grow, will now be served with localized GrowLife-branded retail partners that understand how to apply innovative indoor growing equipment and supplies ranging from specialty lighting and clean growing media to healthy and safe nutrients.”

This news was important because we hadn't heard from the company since June when the company announced Growlife Cube, a new subscription service for emerging indoor growers. GrowLife Cube, found at Greners.com, is a complete indoor growing subscription service that provides an ecologically friendly environment with indoor growing equipment packages starting at $499 and monthly supplies and consulting services to help bring crops to harvest. GrowLife Cube is configured to produce different sized crops, from 1 pound to Professional 2.5 pounds for each light. A new Micro Starter Package at $499 is specially designed for micro-greens, developing indoor growing skills and includes all the necessary equipment and supplies for the first year.Currently trading with a market cap of $11 million, PHOT is well-known among pot stock investors and has proven that it can turn into a microcap runner overnight. In looking at the quarter ending September 30, PHOT reported $77k in cash, $1.47m in total assets, and $5.7m in total liabilities. What impresses us is that the company was able to reduce its liabilities from $6.7m to $5.7m in just 3 months. If the company can further clean up its balance sheet and show some revenue growth, PHOT will be off and running again. We will be updating our subscribers as soon as we know more. For the latest updates on PHOT and other pot stocks, sign up below!Disclosure: We have no position in PHOT and have not been compensated for this article.