GROWLIFE, INC. (OTCMKTS:PHOT) Files An 8-K Entry into a Material Definitive AgreementItem 1.01Entry into a Material Definitive Agreement.
On February 16, 2018, GrowLife, Inc. (the “Company”) entered into an Addendum (the “First Addendum”) to amend the terms between the Company and David Reichwein (“Reichwein”) set forth in that certain Asset Purchase Agreement and Employment Agreement, as disclosed on our current report on Form 8-K filed with the Commission October 10, 2017 and incorporated herein by reference.
to the First Addendum, the Company purchased the remaining 49% of the Purchased Assets in exchange for a one-time payment of $250,000 and the cancellation of Reichwein’s right to receive a 10% commission on certain sales of Free Fit products as was set forth in Reichwein’s employment agreement. In exchange for the cancellation of the commission in the employment agreement, Reichwein was granted the opportunity to earn up to two $100,000 cash bonuses and an aggregate common stock bonus of up to 7,500,000 shares if certain revenue and gross margin goals are met in 2018.
The purchase as set forth in the First Addendum is subject to all other terms and conditions set forth in the original Purchase Agreement. A copy of the First Addendum will be attached as an exhibit to the Company’s Form 10-Q for the three months ended March 31, 2018.
Item 2.01Completion of Acquisition or Disposition of Assets.
The information provided in response to Item 1.01 of this report is incorporated by reference into this Item 2.01.
Item 8.01Other Events.
On February 22, 2018, the Company issued a press release announcing the First Addendum to Purchase Agreement. The press release is furnished as Exhibit 99.1 hereto and incorporated herein by reference.
Item 9.01Financial Statements and Exhibits.
(d)Exhibits.
GROWLIFE, INC. ExhibitEX-99 2 ex_99-1.htm PRESS RELEASE DATED 02-22-2018 Exhibit 99.1 GrowLife,…To view the full exhibit click here
About GROWLIFE, INC. (OTCMKTS:PHOT)
GrowLife, Inc. (GrowLife) provides goods, including media (farming soil), hydroponics equipment, organic plant nutrients, and various other products to specialty grow operations across the United States. The Company primarily sells through its subsidiary, GrowLife Hydroponics, Inc. In addition to the promotion and sales of GrowLife owned brands, GrowLife distributes and sells over 3,000 products through its e-commerce distribution channel, Greners.com, and through its regional retail storefronts. The Company serves a community of commercial and urban cultivators growing specialty crops, including organics, greens and plant-based medicines. Indoor growing techniques are used to cultivate plant-based medicines. The Company holds rights in approximately 30 Website addresses related to its business, such as www.growlifeinc.com, www.growlifeeco.com, www.stealthgrow.com and www.greners.com.