WOODLAND HILLS, Calif., April 22, 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 secured the necessary financing commitments for its pending acquisition of the combined operations of Rocky Mountain Hydroponics, LLC., Evergreen Garden Centers, LLC and 58Hydro.com ("EGC") from California based Gemini Master Fund Ltd ("Gemini Fund"). As such, the Company believes it is now responsible to adjust the revenue guidance provided in the recently released Annual Report which did not reflect this now fully-financed acquisition and its resulting revenue addition.
GrowLife CEO Sterling Scott explained, "We are delighted with the confidence and caliber of the Gemini Funding team and appreciate their financing commitment for our deal requirements; the terms of funding are excellent and we are pleased that the Gemini Fund team has enough confidence in our business that so-called 'toxic financing' provisions were not even mentioned."
Growlife is particularly excited to begin implementing the increased scale purchasing and selling, and to realize the major efficiencies that this pending acquisition will bring to the GrowLife enterprise. The mechanics of the acquisition are progressing well and the Company expects an early closing in May 2013.
The properties to be acquired accounted for in excess of $4 million in revenue last year. In the Annual Report, GrowLife management projects sales in 2013 in the range between $3.9 million and $4.3 million, exclusive of any expansion of GrowLife business through potential acquisitions or proposed regulatory changes. These projections are explicitly based upon past results and extrapolating that data.
With the swift progress of the deal to an expected May 2013 closing, GrowLife also expects in the very near future to provide upward adjustments as necessary to its 2013 revenue guidance, allowing its accounting professionals to assess not just the immediate revenue benefits from the acquisitions but economies of scale, enhanced distribution efficiencies and more that the acquisition provides. A time frame for the release of guidance has not been set.
Cautionary Language Concerning Forward-Looking Statements
Information set forth in this press release contains financial estimates and other forward-looking statements (within the meaning of the Private Securities Litigation Reform Act of 1995) that are subject to risks and uncertainties, and actual results might differ materially. Examples of such forward-looking statements include management's projected 2013 revenue guidance, references to potential acquisitions, and other references to potential growth in the business. 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.