What You Need to Know About Growlife’s Latest Developments and Where We Are Headed
2018 is proving to be a very exciting time for GrowLife. We have been working extensively on the implementation of our strategic plan to position GrowLife on the frontlines of cultivation innovation through multiple initiatives including the creation of new products and systems, a focus on profitability and revenue generation through the year, and a re-organization of the capitalization structure designed to increase investor value and long term stability. We believe the cornerstone of a successful public company is open and transparent communication with its shareholders. With so many aspects of our strategic plan taking effect simultaneously, I wanted to take a moment to lay out our strategy and address a few of the many moving parts with our current and future shareholders.
On August 31, 2018 we filed an S-1 with the SEC that would allow us to move forward with a Rights Offering for our current shareholders. This is an important and exciting development for our shareholders as well as for our company. We have been experiencing very consistent growth over the past year and as a result have been able to focus on innovating our product line, most notably with the development and testing of our patent-pending vertical growing system designed to drive down production cost for our customers, a much-needed value proposition for the industry to scale up. I recently discussed this system and how it will change the industry and our company with PotNetwork.
Upon approval from the SEC, we will be announcing the details of the offering within the week. What we can say is that the offering will allow current shareholders to invest in the company at special pricing, usually reserved for large institutional investors. The Rights Offering is designed to reward our current shareholders while raising the funds necessary for the company to bring its vertical grow system to market and target to create a significant new revenue stream.
We hope that a large percentage of our sizeable shareholder base chooses to participate in this offering and continues to see the growth potential for GrowLife.
In addition to the Rights Offering, we have recently released a Proxy Statement for an upcoming shareholder meeting in December. The proxy, which we encourage shareholders to review and submit questions about, addresses multiple internal happenings within the company such as board nomination discussions as well as a vote on a potential reserve split of outstanding shares. Although we have not committed to complete the reverse, we are leaning towards a 100:1 reverse split. For a seasoned investor, this may sound risky; however, I could not be more confident that this is the most essential next step for our company. I understand perception when it comes to reverse splits, but I also understand that they can boost investor value and confidence as well as attract additional institutional investors as long as the company has growth propelling the organization. GrowLife has been on an unstoppable growth trajectory as of late and this reverse, coupled with our Rights Offering and launch of our revolutionary vertical grow technology, lay a tangible path to success for our company. Beyond voting on the reverse, shareholders will be encouraged to provide feedback on company strategy and plans among other action items that can be found in the full proxy filing found here.
GrowLife couldn’t be better positioned to capitalize on the momentum we have built and following our strategic plan will get us to the next level. We have put in place the best talent this industry has to offer who are bringing our customers increasing value through their expertise, two e-commerce and e-logistics portals that service United States and Canada, which are experiencing tremendous growth (15x over the past year), an Innovation division that is creating the future of indoor plant cultivation including our proof of concept study on our vertical grow system, and a financial department that is focusing on increased profitability through systems and tripling gross margins while completing Mergers & Acquisitions discussions with industry leading companies that will harness the power of GrowLife and create limitless opportunity.
For more information on where we have been and where we are headed, please watch our shareholder video update.
We highly encourage shareholders to participate in our many initiatives moving forward. As such, we have created a communication mechanism for shareholders to inquire for more information and get their questions answered. We will be launching a website with more information on the Rights Offering when it is available. Beyond that, shareholders are encouraged to sign up for our shareholder email updates and reach out to email@example.com for more specific questions.