Cannabis company GrowLife, Inc. PHOT said Thursday it has signed a financing agreement of $2.5 million that should allow it to expand its service offering with CBD-rich hemp clones sales.
Estimates say that the CBD market in the U.S. will reach almost $24 billion by 2023 depicting an ever-growing need for hemp-derived CBD products.
The increase of the CBD market has created a large new demand for the raw materials necessary for the production of the product, the company reported in the press release.
Why It's Important
The new funding of $2.5 million will allow Growlife to pay its existing debt, expand the current base business and to present new high-margin CBD-hemp clones to its network of plant cultivators.
“With the federal legalization of hemp and nationwide demand for CBD increasing, the need for high yield, CBD-rich hemp has never been greater and we have an unprecedented opportunity to supply these farmers with the clones they need to start their plants through EZ-CLONE,” Marco Hegyi, GrowLife CEO and President, said in a statement.
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Hegyi said “We are working with the best hemp geneticists and large-scale propagation partners to deliver the highest-quality CBD-rich hemp clones to farmers on a nationwide scale in 2020. In order to do this, we needed solid financing with minimal dilution. This new funding illustrates the confidence our investor has in our strategy by putting in $2.5 million at market price.”
He detailed the growth of the CBD-market by noting “the demand for CBD-rich hemp has grown 368% in just one year and an estimated 200,000 acres will be planted this year, up from roughly 25,000 just two years ago. “
GrowLife shares were up 6% to $0.0053 Thursday.
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