California-based cultivation equipment retailer GrowLife Inc. has restructured its leadership, replacing CEO Sterling Scott with Marco Hegyi, the company’s president.
Scott, who was also director and chairman of the company’s board, resigned from the company for “personal reasons,” according to a press release.
Scott had been with GrowLife Inc. for more than two years, helping the company acquire seven retail stores and operate a successful ecommerce operation.
But investor confidence in the company took a major hit in early April, when the SEC halted trading of the company’s shares for two weeks due to “questions that have been raised about the accuracy and adequacy of information in the marketplace and potentially manipulative transactions in [GrowLife]’s common stock.”
No further actions were taken against the company.
GrowLife’s suspension came as the SEC targeted several prominent public companies in the cannabis space.
Hegyi joined the company in December after a successful career at Yahoo, where he was senior director of global product management. According to Jeff Giarraputo, a member of GrowLife Inc.’s board, Hegyi’s background lends well to “development and expansion of the next phase of GrowLife.”