WOODLAND HILLS, Calif.,
Jan. 29, 2014 /PRNewswire/
-- GrowLife, Inc. (OTCBB: PHOT), a diversified company
operating in the legal cannabis industry which develops, markets
and deploys products and services of legal cannabis, is pleased to
announce that Organic Growth International, LLC ("OGI"), its
previously announced joint venture with CANX USA, LLC, has entered into a series of
agreements with CEN Biotech, Inc., subject to the approval of the
GrowLife Board of Directors. GrowLife currently has a 45%
ownership interest in OGI, with conditions under which it can gain
majority interest.
CEN Biotech, working under the inspection and authority of
Health Canada, has completed the extraordinary governmental
processes in Canada to receive
approval to begin constructing their state of the art medical
marijuana facility in the City of Lakeshore, Ontario, Canada. The facility has
undergone extensive vetting by authorities to ensure strict
compliance and facility security requirements of Canadian
Government and provincial requirements in Canada.
Importantly, the facility has been graciously embraced by the town
of Lakeshore and the Windsor Essex Economic Development Authorities
as a most desirable source of jobs and economic activity for this
highly agricultural region. This production facility is
expected to have the capacity to produce up to 1.3 million pounds
of dried medical marijuana annually, and the total may include
capacity that is set aside for import and export. While
facility construction has commenced, as of the date of this release
CEN Biotech has to next secure the final and formal permissions to
grow, harvest, package, and sell medical marijuana in Canada or for export.
Through a series of agreements, OGI facilitated a 25% equity
position in CEN Biotech which is in addition to the ownership
interest in certain licensing fees from CEN Biotech held through
OGI, along with a shared right to revenue sharing of 7.7% of all
gross payments received by CEN Biotech. In addition, GrowLife and
its affiliates will serve as CEN Biotech's exclusive supplier of
legal cannabis growing equipment for the entire term of the shared
ownership, subject to certain limitations. Furthermore, if and when
CEN Biotech achieves cumulative manufacturing and sales volume of
one million pounds of cannabis, OGI will be entitled to a
$100 million payment. In exchange for
the rights listed above, and others, GrowLife will issue to
designated CEN Biotech shareholders a total of 235,294,118 shares
of restricted GrowLife common stock, the equivalent of $40 million at $0.17 per share, after CEN Biotech is formally
approved to produce and harvest cannabis by the appropriate
Canadian authorities. The shares will be issued only if CEN Biotech
receives final approval to grow and sell marijuana as currently
planned, which means any issuance will likely be months in the
future and closer to when there are revenue opportunities for CEN
Biotech and therefore GrowLife. If these shares are ultimately
issued, GrowLife will be obligated to register them under
applicable federal and state securities laws. This contingent
issuance is also subject to the GrowLife shareholders increasing
the authorized common stock at the upcoming special meeting of
shareholders.
"The agreement represents an outstanding beginning for
GrowLife's newly expanded business model and entry into lucrative
global market sectors in legal cannabis," stated Sterling Scott, CEO, GrowLife Inc. "The scale of
the planned operations is truly unprecedented for legal cannabis
worldwide as the facility has been proposed and is under
construction for a production capacity of up to 1.3 million pounds
of dried medical marijuana annually. We are extremely pleased to
participate in this tremendous revenue opportunity for GrowLife and
its shareholders which we believe clearly installs GrowLife as one
of the foremost cannabis related companies on an international
level."
"When we were provided with the opportunity to potentially
provide these services in Canada
our team realized that we needed the additional support and
expertise of an elite cannabis company with the assets, technology,
and intellectual capital to see our dream through to reality,"
stated Bill Chaaban, President and
CEO, CEN Biotech. "In GrowLife we
have found that ideal partner."
A full 8k detailing the Agreement will be released within the
allowed time period. A GrowLife Investor Presentation can be
viewed online at
http://growlifeinc.com/growlife-presentations-october-2013/
From time to time, GrowLife will provide market updates and news
via its websites GrowLifeInc.com, Cannabis.org or the Company's
Facebook page at
https://www.facebook.com/tellthetruthfederalgovernment
About GrowLife, Inc.
GrowLife, Inc. (PHOT) (www.growlifeinc.com) develops, markets
and deploys products and services addressing the needs of legal
cannabis growing and retail operations, including hydroponic
growing equipment and retail support software. The Company provides
these solutions in our nationwide retail network, as well as online
sites Greners.com, Phototron.com and 58Hydro.com. The Company also
operates the political and social forum, Cannabis.org
About CEN Biotech
CEN Biotech, Inc. was established in 2013 as a partially owned
subsidiary of Creative Edge Nutrition (OTC Pink: FITX) for the sole
purpose of supplying the Canadian public with pharmaceutical-grade
medical cannabis under the newly established Marihuana for Medical
Purposes Regulations (MMPR) CEN Biotech Inc. has submitted a
comprehensive application to become a licensed producer (LP) of
dried marihuana for medicinal purposes and has received a
ready-to-build approval from Health Canada.
Cautionary Language Concerning Forward-Looking
Statements
This release contains "forward-looking statements" that include
information relating to future events and future financial and
operating performance. The words "may," "would," "will,"
"expect," "estimate," "can," "believe," "potential" and similar
expressions and variations thereof are intended to identify
forward-looking statements. Forward-looking statements should not
be read as a guarantee of future performance or results, and will
not necessarily be accurate indications of the times at, or by,
which that performance or those results will be achieved.
Forward-looking statements are based on information available
at the time they are made and/or management's good faith belief as
of that time with respect to future events, and are subject to
risks and uncertainties that could cause actual performance or
results to differ materially from those expressed in or suggested
by the forward-looking statements. Important factors that could
cause these differences include, but are not limited to:
fluctuations in demand for GrowLife's products, the introduction of
new products, the Company's ability to maintain customer and
strategic business relationships, the impact of competitive
products and pricing, growth in targeted markets, the adequacy of
the Company's liquidity and financial strength to support its
growth, and other information that may be detailed from
time-to-time in GrowLife's filings with the United States
Securities and Exchange Commission. Examples of such
forward-looking statements in this release include statements
regarding future sales, costs and market acceptance of products as
well as regulatory actions at the State or Federal level. For
a more detailed description of the risk factors and uncertainties
affecting GrowLife, Inc. please refer to the Company's Securities
and Exchange Commission filings, which are available at
www.sec.gov. GrowLife, Inc. undertakes no obligation to publicly
update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise.
Investor Relations Contact:
Integrity Media
Kurt Divich (702) 396-1000
kurt@integrityir.com
SOURCE GrowLife, Inc.