This morning in premarket the SEC suspended trading in Growlife (PHOT). PHOT joins CDFT, PTOG, AVNE, and CANN on the list of marijuana stocks that have been suspended by the SEC over the last couple months. CANN reopened for tradingtoday and as I write this it is down 38% at $18.01. (I am currently short CANN.) PHOT will reopen for trading at the market open on Friday, April 25th.
Unlike many of the so-called marijuana stocks PHOT has a real business with meaningful sales and assets and even gross profits (though net losses). This suspension will likely put a damper on marijuana stock hype for days if not weeks.
From the SEC press release:
The Commission temporarily suspended trading in the securities of PHOT 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.
The Commission acknowledges FINRA’s assistance in this matter