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.”

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 7 Comments

  1. Logan November 21, 2013
  2. brian hoskins November 22, 2013
  3. Ali Jannati November 22, 2013
  4. bill November 23, 2013
  5. Dr, Mark Burcaw, D.C. November 25, 2013
  6. brian hoskins November 25, 2013
  7. Ali Jannati November 26, 2013

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