GrowLife Gets $40M Funding Commitment

GrowLife, a publicly traded company that makes software and equipment for the cultivation and sale of marijuana, will receive up to $40 million in funding from a Nevada private investment group called CANX USA.

California-based GrowLife said it will use the funding make acquisitions and provide financing to cultivation operations and dispensaries in eight states – including Arizona, Colorado, Nevada and Washington – as well as in Canada.

Under the deal, the company will receive $1.3 million in initial funding for the financing program. CANX has agreed to provide up to $40 million total over time.

Additionally, the two firms have created a joint venture company, called Organic Growth International LLC. GrowLife maintains a 45% ownership stake in the company.

“This financing arrangement … strengthens our ability to assist growers already active in the legal cannabis arena with rapid expansion ahead of what we anticipate will be a flood of corporate interest in growing,” Sterling Scott, GrowLife’s CEO, said in a release. “And it also firmly launches GrowLife into a vertical with a much higher ceiling of opportunity.”

Investors applauded the move, sending GrowLife’s stock up as much as 3 cents a share – or 50% – in early morning trading today after the deal was announced.

CANX USA is a private investment group comprised of investors with expertise in agriculture, supply chain, retail, real estate, technology and marketing. The company’s stated goal is to facilitate “game-changing acquisitions and upgrade technologies for its partners and investments.”

7 comments on “GrowLife Gets $40M Funding Commitment
  1. Dr, Mark Burcaw, D.C. on

    Federal enforcement must be focused on the inevitable bad actors (in any field). This particular branch of healthcare is so new (to the mainstream) and so cost effective we can not tolerate anymore indiscriminate draconian activity.

    Reply
  2. Ali Jannati on

    Bill,
    The phot stock dropped I think because those who dumpped their shares in massive numbers, took their profits off the table and at the same time brought the price down so they could buy them back inmassive numbers again. It is stock market…

    Reply

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