Growlife Inc. (OTCBB:PHOT) Rises On Pump
The marijuana craze rages on, and nowhere is that more obvious, than with Growlife Inc. (OTCBB:PHOT). Yesterday company stock went up 20.15% and closed at $20.15%, pushed up by a pump.
By all accounts, the latest global development for marijuana investors wasn’t beneficial for pot-stocks. The 2013 Annual Report of the United Nations International Narcotics Control Board for one wasn’t encouraging at all. The report explicitly stated that the legalization of marijuana in U.S. states and Uruguay is in direct conflict with international drug conventions that both countries have ratified. As it turns out, marijuana legalization and the legitimization of marijuana business may have solved many legal issues, but has created a bunch of others, which must now be solved on a national level.
This news proved to be something of a hindrance, but not for long. PHOT more than managed to compensate for the bad news by announcing that its first GrowLife Infrastructure Funding and Technology program was set in motion. Said program is to allow fully-licensed and compliant growers and dispensaries in well-regulated cannabis markets to spread the cost of infrastructure builds over time. The fact that the receiver of the “GIFT” is none other than LEAF Aspen also drew attention of investors.
Another reason PHOT is soaring so high right now is a pump by the notorious promoter Money Runners, that hit the inbox minutes after the beginning of the March 10 session. The tout pushed the ticker up noticeably. Even now the attention it generated is hyping investors and helping PHOT on its way to the top of the charts, despite all the red flags surrounding the company.
Said red flags are as numerous as they are worrying. PHOT‘s latest filing revealed that, in a special meeting of shareholders on February 7, 2014, the Company’s authorized shares of Common Stock have been increased from 1 to 3 billion. The report itself doesn’t specify a reason for this, but investors should be wary of dilution.
PHOT‘s latest financial filings, for the period ended Sept. 30, 2013, aren’t something to brag about either:
- Cash – $190 thousand
- Total current assets – $1.2 million
- Net revenue – $1.3 million
- Net loss – $1.8 million
Readers are advised to consider such filings before committing to high risk stocks.
Another marijuana company that shot up yesterday is Tranzbyte Corp. (OTCMKTS:ERBB), which jumped 10.22%.
