Among the pot stocks on the move this week, one shouldn’t overlook the impressive action in Growlife Inc (OTCMKTS:PHOT). This penny stock went bonkers on Monday and Tuesday on huge volume as the company announced that it has completed a transaction to acquire a majority share of EZ-CLONE Enterprises, Inc. (EZ-CLONE).
According to that release, “EZ-CLONE is the manufacturer of multiple award-winning products specifically designed for the commercial cloning and propagation stage of indoor plant cultivation including cannabis, food, and other hydroponic farming. The transaction aligns with the Company’s strategic vision of servicing the burgeoning cannabis cultivation market.”
Growlife Inc (OTCMKTS:PHOT) managed to rope in revenues totaling $1.2M in overall sales during the company’s most recently reported quarterly financial data — a figure that represents a rate of top line growth of 131.8%, as compared to year-ago data in comparable terms.
The next big cannabis story to hit North America is Phoenix Life Science International (PLSI), traded in the US, but with the largest global production based in the tropics and a license to distribute worldwide. Take a look at Phoenix Life Science International PLSI), Its currently trading under $18 dollars per share on the OTC markets. Learn More Now!
That’s significant growth, even by pot stock standards. But there is likely more to this move than just the closing of a strong deal.
Timing is Everything
This announcement has popped the stock higher, which certainly isn’t surprising. PHOT shareholders are now sitting on about 72% in gains over the past week.
Unquestionably, the context for cannabis-related plays has been about as good as one could ever imagine as we head into the much-anticipated Canadian adult-use legalization announcement tomorrow as well as something on the way from the Trump administration on reforming cannabis laws in the US as well.
That said, the volume attached to this move in PHOT on the news (at 8x average volume) is extremely impressive.
“This acquisition is one of the most significant milestones for GrowLife to-date, allowing us to further expand GrowLife’s product and service offering portfolio with the backing of this renowned company,” said GrowLife CEO Marco Hegyi. “EZ-CLONE has become synonymous with the highest quality cloning products in the industry and has become the standard in cloning and propagation among industry leaders and experts. GrowLife’s mission is to support the entire process of cannabis cultivation and help our customers to grow in the most efficient and cost-effective manner. EZ-CLONE’s product line perfectly fits with our vertical commercial grow system and will provide our customers with the ultimate cultivation infrastructure from clone to harvest.”
The deal looks superficially like it certainly meshes well with the company at this stage, which accounts for the strong reaction in shares.
Moreover, Growlife Inc (OTCMKTS:PHOT) trumpets itself as a company that provides farming soil, hydroponics equipment, organic plant nutrients, and other products to specialty grow operations in the United States.
The company’s hydroponics equipment includes indoor lighting systems, growing mediums and accessories, tools for cutting and propagation, hydroponics systems, bulbs, ballasts, reflectors, meters and timers, and climate control equipment for the indoor plant cultivation and cannabis industries.
According to its materials, the company distributes and sells its products through its e-commerce distribution channels, such as ShopGrowLife.com, Greners.com, and GrowLifeEco.com, as well as retail storefronts.
In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($136K against $3.7M, respectively).
Pushing the barriers for global distribution, Phoenix Life Science International (PLSI) is the next cannabis play. Just think Canopy x 100, that is how big their plantation in the tropics will be. No lights, no green houses, just maximum growth + minimal cost = home run. Learn More Now!
Cronos Group Inc. (NASDAQ:CRON) Pops On Altria Acquisition Talk After Q3 Net Loss Disappointment
Cronos Group Inc. (NASDAQ:CRON) is skyrocketing up the charts having emerged it is an acquisition target of Marlboro cigarette-maker Altria...
American Green Inc (OTCMKTS:ERBB) Kicks Off December On Rough Patch
American Green Inc (OTCMKTS:ERBB) seems to have started the month of December on a rather dull pace after closing the...
HempAmericana Inc. (OTCMKTS:HMPQ) Due For A Bounce Back As Sentiments Turn Bullish
HempAmericana Inc. (OTCMKTS: HMPQ) might as well have served groundbreaking catalysts set to trigger a rally from the current lows....
Hemp Inc. (OTCMKTS:HEMP) Surging On Massive Opportunity In Hemp Sector
Hemp Inc. (OTCMKTS:HEMP) bounce back after a steep pullback is gaining momentum. The stock could as well break out of...
Why Medmen Enterprises Inc (OTCMKTS:MMNFF) Could be Set to Rip
Medmen Enterprises Inc (OTCMKTS:MMNFF) has been beaten down soundly over the past 6 weeks. The stock continues to set up...
Can Green Thumb Industries Inc (OTCMKTS:GTBIF) Get Some Traction Following Primary Data?
Green Thumb Industries Inc (OTCMKTS:GTBIF) is another cannabis player to hit the wires with its quarterly financials. This comes at...
Charlotte’s Web Holdings Inc (OTCMKTS:CWBHF) Hits the Wires with Q Data as Farm Bill Readies
Charlotte’s Web Holdings Inc (OTCMKTS:CWBHF) just announced financial results for the third quarter and nine months ended September 30, 2018....
KushCo Holdings Inc (OTCMKTS:KSHB) Beats Single Analyst Estimates on Q3 Numbers
KushCo Holdings Inc (OTCMKTS:KSHB) just announced financial results for its fiscal year 2018, for the period ended August 31, 2018....
OrganiGram Holdings Inc (OTCMKTS:OGRMF) Looks to Solidify Support on Expanding Supplier Status
OrganiGram Holdings Inc (OTCMKTS:OGRMF) has been an interesting outperformer in the cannabis space for most of the year. However, shares...
Growlife Inc (OTCMKTS:PHOT) Could be Flying Under the Radar
Growlife Inc (OTCMKTS:PHOT) has been grinding lower over the past 10 months, which represents some clear underperformance relative to the...