GrowLife, Inc. (OTCMKTS: PHOT) announced that it has completed its round of rights offering equity financing that generated about $2.5 million in gross proceeds. The company ended the financing round on November 30, several days after its initial deadline that fell on a holiday. The company extended the original deadline following requests by large-scale stakeholders who needed more time to participate in the offering.
Proceeds
Although the company initially targeted $6 million from the offering, it ended up with a smaller sum of about $2.5 million. According to the offering’s announcement, the company intended to give ardent shareholders a chance to make direct long-term investment in the company and of course raise capital for development purposes.
Speaking during the recent release, GrowLife CEO Marco Hegyi praised the company’s shareholders for the support during the offering. The company’s chief went on to applaud his dedicated team for their efforts that led to the offering’s success.
Funds allocation
Hegyi reiterated the company’s commitment in pursuing its core goals of being the industry’s leading provider of indoor cultivation solutions and products. The CEO stated that the raised funds will entirely serve expansion purposes with focus on development of innovative solutions that will help its clients produce industry-grade products in the most cost-effective way possible.
The CEO expressed confidence in the company’s signature vertical grow system stating that it will enable cultivators to produce high volume products per square foot. Besides high-volume production, the company seeks to increase its sales volumes by expanding its geographical distribution coverage.
”The confidence our shareholders have placed in us is both humbling and inspiring, as they made their opinions known by re-investing in us for the long term. We hope to return this trust through the momentum and growth our company is experiencing – making 2019 the best year for GrowLife to date,” said Hegyi.
Hegyi confirmed that the results on the number of shares issued during the offering and the amount of funds received tally. He further clarifies that the preliminary results are subject to verification and approval by the transfer agent.
