Awesome Interview with Sterling Scott of PHOT

One of the “Fab Four” of the cannabis industry according to Bruce Perlowin, CEO of Hemp, Inc. (HEMP.PK), GrowLife (PHOT.OB), which is based in California, stands out from the other three companies in many ways, including the fact that it’s fully reporting to the SEC and is substantially smaller in terms of market cap. When I recently reviewed the space, sharing some information on 14 names with market caps in excess of $10mm with the goal of helping investors to understand better the risks and potential rewards, I created my own “Focus Four”, but I didn’t include GrowLife . I have heard from so many investors and potential investors who think that I perhaps should have called it the “Focus Five” and included GrowLife that I decided to begin to further analyze the company.

I spent about 90 minutes on the phone with CEO Sterling Scott (56) as well as the company’s outside I.R. representative, Kurt Divich of Integrity Investor Relations (a great resource for potential investors) last week, and I quickly realized that GrowLife merits further attention.

As of the end of June, based on a fully-diluted share-count (including securities that can be converted to stock) of 752mm shares, PHOT has a market cap of approximately $36mm and debt totaling $2.2mm, which puts it at a tiny fraction of some of the better known peers. I hope to have a formal target price and potential recommendation in the near future, but I wanted to share an exchange I had with CEO Sterling Scott so that my readers might get a better sense of this potentially attractive story.

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