The U.S. Securities and Exchange Commission has temporarily halted stock trading for GrowLife Inc. (PHOT), which trades on the over-the-counter bulletin board.
In a press release, the SEC said it has stopped trading “because of questions that have been raised about the accuracy and adequacy of information in the marketplace and potentially manipulative transactions in PHOT’s common stock.” Stocks in the cannabis sector were down on Thursday afternoon after the action.
The suspension could be lifted on April 25, however there is no guarantee. Neither the SEC nor GrowLife have commented further on the action.
The action come less than two weeks after it halted trading for Advanced Cannabis Solutions (CANN), another cannabis stock on the over-the-counter bulletin board. The SEC halted that stock due to the potentially unlawful sales of shares by “undisclosed affiliates and shareholders.”
Neither company directly sells or produces cannabis. Advanced Cannabis Solutions provides real estate and consulting services to cannabis companies, and GrowLife Inc. offers services and business infrastructure for cannabis businesses.
GrowLife specializes in hydroponics and growing equipment. The company has previously offered notes that can convert into stock at prices that are severely discounted.