GrowLife Inc. (OTCBB:PHOT) returned to the trading floor Friday, but investors kept their distance.
The popular marijuana that once was priced at 0.78 cents a share this year fell flat in its return, closing at $0.21, down 0.2920(58.17%). GrowLife's return to the trading floor comes off a temporary suspension that began April 10 by the Securities and Exchange Commission. According to the SEC, the suspension was 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.”
With the temporary suspension now in their rear view window, GrowLife Inc. CEO Sterling Scott continued his message of transparency Thursday releasing another open letter to investors saying, "GrowLife management continues to believe that the legal cannabis market in the United States is going mainstream. We are dedicated to continuing to lead the industry with the strongest management team and a business model that we expect to be validated and improved over and over in the years to come. Adversity only makes us smarter and stronger, more committed to realizing the extraordinary opportunity that our investors have allowed us to lead. We will continue to manage and navigate those risks with integrity and transparency to the very best of our ability. "
If Friday is any indicator of things to come, GrowLife has a lot of ground to regain. Before the suspension, PHOT's stock was priced at or around $0.50 cents a share on average. The sluggish start is a clear reminder that those who dabble in the marijuana industry are easily frightened off.
But that's not the entire reason.
Earlier today, New York's Levi & Korsinsky announced a class action lawsuit has been commenced in the United States District Court for the Central District of California on behalf of investors who purchased GrowLife, Inc. common stock between November 14, 2013 and April 9, 2014. The complaint falls in line with the SEC's accusations that GrowLife issued materially false and misleading statements about its true financial condition.
GrowLife's range today was between $0.10 and $0.28 cents.