WOODLAND HILLS, Calif., June 10, 2013 /PRNewswire/ -- GrowLife, Inc. (OTCQB: PHOT), a provider of highly effective indoor growing technologies and unique lifestyle brands, is pleased to announce that following a rigorous due diligence process that it has completed its acquisition of Rocky Mountain Hydroponics, LLC, Evergreen Garden Center(s), LLC and on-line portal 58Hydro.com ("RMH/EGC"). The acquisition immediately makes GrowLife one of the largest and most diversified conglomerates related to indoor gardening in the United States with operations and distribution nationwide.
The closing terms involved consideration of $1,625,000 to the owners of RMH/EGC including Rob Hunt, who will continue on as an integral member of GrowLife as an officer and member of the Board of Directors. As the pre-closing majority owner of RMH/EGC, Rob Hunt will receive the majority of the stock, note and cash consideration and will be well vested in GrowLife's future successes.
The consideration shall be allocated in the form of 7,857,143 shares of GrowLife common stock, $800,000 in convertible notes that can be redeemed by the company or converted by the holders to common stock in GrowLife at $0.035/share within the next two years and a one-time payment of $550,000 in cash.
"We are delighted to announce that GrowLife is now the owner of these tremendous companies," stated Sterling Scott, CEO, GrowLife Inc. "This acquisition is a game changer for GrowLife. With national interest rising, it is vital that GrowLife has ultra-efficient operations, the collective buying power to dominate our markets, and a team of industry professionals that is second to none. This acquisition will propel GrowLife forward in all of these imperative objectives while delivering immediate and significant revenue to GrowLife."
"We are especially pleased that Rob Hunt and his management team are all committed to staying on with GrowLife following the acquisition," added Scott. "Rob Hunt has agreed to join GrowLife's Board of Directors and to assume the position of Executive Vice President of our Company and President of our GrowLife Hydroponics, Inc. business unit. We are also pleased to report that even in advance of the closing, the companies have been working closely together to identify and implement immediate cost savings and on a staged basis, begin realizing the many synergies that come from combining our collective purchasing and merchandising power. Our combined enterprise revenue will increase materially as a result of the acquisition and we will update guidance appropriately in the immediate future," stated Scott.
"The addition of the RMH/EGC footprint with that of GrowLife's existing bricks and mortar and online locations affords tremendous new opportunity to service the indoor gardening industry nationwide. From lower prices to faster shipping times, our customer base will be thrilled at what we can now do for them. The entire RMH/EGC team is elated to be working with our counterparts at GrowLife," added Hunt.
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About GrowLife, Inc.
GrowLife, Inc. (PHOT) (formerly Phototron Holdings, Inc.) (www.growlifeinc.com) is a company with core holdings in innovative technology-based products and services for the indoor gardening industry and specialty markets. These brands include Stealth Grow, a producer of grow room automation equipment and hi-powered LED grow light products for indoor horticulture (www.sgsensors.com and www.stealthgrow.com), Greners.com, the online hydroponics superstore (www.greners.com) and Phototron, producer of hydroponic grow containers, which are designed to grow vegetables, herbs, flowers and fruits in any environment (www.phototron.com). GrowLife is also the US distributor for the Urban Cultivator brand—the greens machine (www.urbancultivator.net).
Cautionary Language Concerning Forward-Looking Statements
Information set forth in this press release contains financial estimates and other forward-looking statements (within the meaning of the Private Securities Litigation Reform Act of 1995) that are subject to risks and uncertainties, and actual results might differ materially. Examples of such forward-looking statements include management's projected 2013 revenue guidance, references to potential acquisitions, and other references to potential growth in the business. A discussion of factors that may affect future results is contained in GrowLife's filings with the Securities and Exchange Commission. In addition, all industry products are subject to additional uncertainty, including the risks of delay, cancellation and poor critical or financial reception. GrowLife disclaims any obligation to update and revise statements contained in this news release based on new information or otherwise.
SOURCE GrowLife, Inc.