Boston, MA 04/10/2014 (wallstreetpr) – The U.S. Securities Exchange Commission (SEC) has suspended trading in the stock of Growlife Inc (OTCBB:PHOT). The company operates multiple business activities that include medical marijuana. The suspension of the stock will stay until April 24, 2014, the regulator announced.
The regulator stated that its move to suspend trading in the stock of the emerging cannabis company will protect the interest of the public and investors.
In suspending Growlife Inc (OTCBB:PHOT), SEC seems to be worried over marketplace information and potentially irregular transaction activities. The regulator observed that the lack of adequate and accurate information in the marketplace has the potential of disadvantaging investors trading in the stock. Moreover, the regulator observed that there are concerns regarding possible stock trading manipulations.
Growlife Inc (OTCBB:PHOT) is among the penny stock companies which are trying to sustain their operations by turning to the fast-emerging medical marijuana business. The industry of medical cannabis looks attractive due to the anticipated legalization of marijuana in more states, in the U.S.
Marijuana plant food
The company makes and sells equip for the growing of marijuana. It recently announced a partnership with Pure Life Veganix. The partnership agreement allows Growlife to distribute the organic plant foods manufactured by Pure Life Veganix.
The distribution deal mainly involves the supply of VegaMatrix that is intended for growers of marijuana. The marijuana supplement market is growing rapidly, and Growlife Inc (OTCBB:PHOT) believes that it will be able to capture more than 3 percent of the market share. That will be possible given that Pure Life Veganix’s products enjoy good industry reputation with many awards to their name. Moreover, the products already have faithful customers who started using them from early stages.
Pure Life Veganix sells its products online to marijuana cultivators. The company also operates location stores through which it sells the products to growers in about five states in the U.S. Marijuana cultivator Kyle Kushman owns Pure Life Veganix.
Growlife Inc (OTCBB:PHOT) hopes that selling marijuana growing equipment and marijuana plant foods will enable it to boost its revenue in the potentially lucrative pot industry. However, the suspension of the trading in its common stock comes as bad news for the company and its investors. The company is expected to face many questions than answers in the coming weeks about the model and of its business following the suspension of its stock.