According to the SEC report filed Thursday, the Commission's reasons for 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.”
It's a temporary freeze on what may be one the marijuana stock market's most popular "pot stocks".
At the beginning of the year, GrowLife Inc. was priced at or around $0.15. Soon the company, like many others were caught up into the investor excitement as legalization of medical marijuana became a national movement. By the end of January the price had doubled to $0.31. In March the price jumped again to $0.55, coasting above the $0.50 mark up to the time of suspension. GrowLife, Inc. hit its peak March 17, trading at $.0.77 a share. That didn't last long, as the price sharply dropped back to the $0.50 mark by March 24.
There have been some buzz in regards to problems, beginning with their annual report showing a net loss of $21 million for 2013. The report was released by the company March 31 of this year.
The company released a statement Thursday, saying "We were not notified in advance, but have contacted the SEC to better understand the basis of the complaint. We will fully comply with the SEC's requests for information, and continue business as normal during this temporary suspension."
In the meantime, marijuana investors closed cautious, leaving many other popular "pot stocks" in the red:
- Terra Tech Corp. (OTCMKTS:TRTC) closed in the red at 0.730, down 16.80 percent.
- Tranzbyte Corp. (OTCMKTS:ERBB) finished trading Thursday at 0.0586, down 16.64 percent.
- Hemp Inc. (OTCMKTS:HEMP) closed down 0.0855, down 0.0145 (-14.50%).