MarketWatch reported today that Creative Edge Nutrition Inc. (OTCMKTS:FITX) announced that it has ended its relationship with GrowLife, Inc. Creative Edge is engaged in the development, marketing and sales of nutraceuticals and health supplements. The company's ties to the marijuana industry include Hemp Protein Powder, Naturals Line, Hemp-plex and Chia-plex.
Along with Creative Edge, RXNB, which deals in cutting-edge systems in the field of agriculture, applicable to medical marijuana, also ended their relationship. In addition, GrowLife Inc.'s relationship with Canadian medical cannabis supplier CEN Biotech also went up in smoke.
According to a company press release, "...In light of this development and other contributing factors, RXNB and CEN Biotech have advised the CEO of GrowLife and the Board of OGI that both the RXNB Agreement and the CEN Biotech Agreement, and any and all amendments to those agreements, are rescinded, void and of no further force and effect..."
The news comes on the heels of the SEC temporarily suspending GrowLife, Inc.'s trading from April 10 -24, because of "... questions that have been raised about the accuracy and adequacy of information in the marketplace and potentially manipulative transactions in PHOT’s common stock.” Meanwhile, GrowLife has insisted they knew nothing about the suspension and has no idea why it happened.
In an open letter to shareholders Monday, GrowLife, Inc. encouraged that investors to "...maintain a measure of calm and patience notwithstanding frustrations that we all feel in this trying time for GrowLife.You have our assurances that when the SEC provides GrowLife with specific information on its concerns, that GrowLife will conduct itself with candor and full disclosure from the team at GrowLife."
But will that be enough? With no clear gurantee GrowLife's temporary suspension will be lifted upon the specified date, investors are just like GrowLife: Finding out at that time and with no clear warning. While there is no indicator yet on what affect this has had on shares, GrowLife has expressed very little worry. "If history is any guide, there is likely to be a negative impact to GrowLife shares when trading is allowed to resume. GrowLife is a widely held security in our market sector and an industry leader. The Company will do everything in its power to minimize impact to shareholders and all of our business relationships," their press release stated.