Growlife Inc (OTCMKTS:PHOT) Is Today's Cannabis Focus

Growlife Inc (OTCMKTS:PHOT) is one of the original pot stocks that captured investor enthusiasm for marijuana in the first green rush back in 2014. However, Growlife shareholders got caught holding the bag after the SEC suspended their shares. It was only earlier this year when PHOT resumed being quoted on the OTC Bulletin Board after receiving clearance from the FINRA on its Form 15c2-11. Now PHOT is getting active ahead of the November ballot and what many are calling Green Rush 2.0.Growlife describes its aim to "become the nation’s largest cultivation service provider for cultivating organics, herbs and greens and plant-based medicines. Our 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.Back in June, 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. CEO Marco Hegyi said:

"There is great demand for developing indoor cultivation skills. Although some scattered information can be found, there are few complete and affordable growing solutions, such as GrowLife Cube, which include hydroponic techniques that are ecologically sound, start-up equipment and regular supplies to support production from amateur to professional growers. GrowLife is constantly receiving requests from customers to help them utilize innovative indoor growing equipment and supplies. Thus, GrowLife is now helping to develop an even greater community of urban farmers.”

What's getting PHOT and other pot stocks popping is the upcoming elections. Come November, voters in at least nine states will decide on whether to legalize either the recreational use or the medical use of marijuana. As it stands now, those states include Arizona, Arkansas, California, Florida, Maine, Massachusetts, Montana, Nevada and North Dakota.So far, 25 states have established medical marijuana programs. These states include: Alaska, Arizona, California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maine,Maryland, Massachusetts, Michigan, Minnesota, Montana, Nevada, New Hampshire, New Jersey, New Mexico, New York, Ohio, Oregon, Pennsylvania, Rhode Island,Vermont, and Washington. In addition, Washington, DC and Puerto Rico allow medical marijuana for patients.In California, things are really heating up. Proposition 64, which is on the November ballot, would allow people age 21 and older to possess and use up to an ounce of marijuana and would allow pot shops to sell cannabis for recreational use. The initiative also includes a provision that could someday allow cannabis sellers to advertise their products in print ads and on digital sites and radio and television stations. If Californians vote to legalize recreational use, overnight it will triple the size of the US cannabis market. So far, Proposition 64 has widespread support. Lt. Gov. Gavin Newsom (D) and at least four California U.S. representatives are supporting the measure. Most importantly, latest polling data shows 60% of Californians in favor of legalization.Currently trading with a market cap of $11 million, PHOT is one of the best known and will be one of the first investors turn to in another green rush. In looking at the quarter ending June 30, PHOT reported $262k in revenues, an operating loss of $632k, net income of $1.6m, $21k in cash, $1.4m in total assets, and $6.7m in total liabilities. CEO Marco Hegyi and the board will need to address the balance sheet going forward. In the short term, investors will be paying closer attention to November 8 and how the entire cannabis sector will look like afterwards. 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.