GrowLife Inc (OTCMKTS:PHOT), shares saw some light resurgence, closing Wednesday's trading at 0.19, up 0.0580(43.94%). It's a long way from where it was though.
The Woodland Hills, Calif. holding company that supplies equipment for legal marijuana growers has been struggling since it's return to trading late last week. Monday's trading saw no real change, closing at 0.18. Tuesday's trading saw the stock price drop to scary levels between 0.11- 0.12 cents a share. PHOT regained some ground in Wednesday's trading, but it's far from the $0.50 a share it was priced before its temporary suspension earlier this month.
The Securities & Exchange Commission's temporary 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.”
Since then, GrowLife has worked to be more transparent with investors, but the price clearly shows there's more work to be done. From press releases, to open letters, to providing more shareholder support, nothing has managed to move the company's stock price back to where it was before the temporary suspension.
However, business moves on.
According to the Wall Street Journal, the company reported today the creation of stronger governance policies at the Board level, the restructuring of Board compensation and the creation of guiding principles for the long-term growth of the company.
Some of these policies include a new compensation plan for independent Directors on GrowLife's Board. The press release states, "The proposed plan shifts compensation away from historical stock awards, and moves it toward incenting/rewarding independent Directors for overseeing the long-term growth and expansion of the company. Director compensation will become more equitable and in-line with the company's performance."
Other news concerning GrowLife this week includes a lawsuit filed by Glancy Binkow & Goldberg LLP, which alleges that GrowLife "...provided inaccurate and/or inadequate information about its stock and engaged in potentially manipulative transactions," and "lacked adequate internal and financial controls" leading to what they determined to be "false and misleading at all relevant times."