WOODLAND HILLS, Calif., April 4, 2013 (GLOBE NEWSWIRE) -- GrowLife, Inc. (OTCQB:PHOT), a provider of highly effective indoor growing technologies and unique lifestyle brands, is pleased to announce that it has signed a letter of intent to acquire Rocky Mountain Hydroponics, LLC., Evergreen Garden Center, LLC. and 58Hydro.com ("EGC") in a transaction that involves a combination of common stock, debt securities and cash. The signed agreement will bring over $4 million in EGC revenue to GrowLife's revenue.
"GrowLife is delighted to add the EGC team to our core talent base led by their majority owner and Chief Executive Officer Robert E. Hunt. GrowLife believes that the strength of a company is determined by its personnel and recognizes Rob and his team as the best in class for our industry," states Sterling Scott, Chief Executive Officer, GrowLife. "Evergreen's multi-regional, brick and mortar retail footprint perfectly complements GrowLife's existing online superstore www.Greners.com.
"This acquisition allows GrowLife to efficiently and elegantly expand its brick and mortar retail sales capability with immediate synergies for Greners.com which will now provide lower-cost, next-day distribution throughout the Northeastern states and Colorado using existing EGC locations. We believe this is a strong strategic play for GrowLife and its perpetual growth in the legal marijuana industry with long term benefit to our valued shareholders. "
"We are very excited to be a part of the expansion of GrowLife companies in the marketplace. GrowLife has quickly become one of the premier marijuana brands. The EGC companies are a natural fit for the rapid expansion of the retail and online sales capability of GrowLife to the Northeastern States and Colorado where EGC is well-established and rapidly expanding," states Robert E. Hunt, CEO, Rocky Mountain Hydroponics & Evergreen Garden Center. "EGC's current business base of more than $4 million in annual sales, joined with that of GrowLife, will significantly expand the leverage and efficiencies of the combined companies; a huge advantage in our industry. It also clearly positions GrowLife as one of the largest and most diversified fully-reporting marijuana centric publicly traded companies in the market."
The agreement between the Evergreen companies and GrowLife is expected to close no later than June 7, 2013 following the customary completion of definitive documents and due diligence. As part of the commitment between the companies, Mr. Hunt is expected to join the Board of Directors for GrowLife, and assume the executive officer position of Executive Vice President and President of GrowLife Hydroponics, Inc.
Cautionary Language Concerning Forward-Looking Statements
Information set forth in this press release may contain financial estimates and other forward-looking statements that are subject to risks and uncertainties, and actual results might differ materially. 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.