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GrowLife extends rights offering to shareholders through November 20, 2018

GrowLife extends rights offering to shareholders  through November 20, 2018Wondering what that letter is all about that you got from your broker, telling you that you had rights from Growlife that were about to expire? Didn’t know you had these rights, and wondering what they mean? Here’s your answer, plus an update.

Kirkland, WA-based GrowLife, Inc. (OTCQB: PHOT), an indoor cultivation product and service provider dedicated to lowering the production cost of its client producers to below $0.50 per gram, (something you may know if you received the letter) today announced it extended until Tuesday, November 20, 2018, its previously announced Rights Offering, which it hopes will raise up to $6 million for the company.

Growlife automatically gave these rights to anyone holding its shares on October 12, 2018. These shareholders received one non-transferable Right for each share of common stock held on that date.

Each “Right” gives the shareholder the right to buy one share of Common Stock and one Warrant, for a total of $0.012, which is roughly the current share price. This means shareholders can buy a share and a warrant for the current price of a share. The price is payable in cash to the company.

One-half of the warrants can be converted into shares at $0.018 per share (50% higher), and one-half at an exercise price of $0.024 (100% higher). For example: if you buy 100 Units you will receive 100 common stock shares and 100 warrants: 50 of the warrants will exercisable at $0.018, and 50 warrants exercisable at $0.024.

This means if the share price rises 50% in the permissible period to $0.018, and you exercise your warrant, you’ll then have 1.5 shares for the price of one bought in this offering. If it rises 100% in the allotted period, and you exercise, you’ll have 2 shares for the price of one.

If the stock never rises above $0.018, the warrants cannot be exercised. In that case, those who buy into the Offering will have bought additional shares at today’s market rate without any discount or additional shares. So, this is a deal for those who believe the stock will rise—and is not a deal for those who doubt it will.

The offering expires at 6:00 pm ET on Tuesday, November 20, 2018.

Growlife is currently pushing its vertical grow rooms, which they claim can help producers lower their costs to $0.50 per gram, from the current industry standard of $1.00-2.00 per gram. This is potentially big news for producers who see the current low supply turning into a glut in the coming year or two, forcing prices way down. If Growlife can deliver these cost per gram numbers, it may have a large market for its vertical grow rooms.

GrowLife, Inc. (PHOT) also provides cultivating organics, herbs and greens, and plant-based medicines. It offers growing media, industry-leading hydroponics and soil, plant nutrients, and other products to specialty grow operations. It operates through a network of local representatives in the United States and Canada, regional centers and its e-Commerce team.

For more information visit Growlifeinc.com/investors/rights-offering.

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GrowLife extends rights offering to shareholders through November 20, 2018