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Monday, 04/07/2014 11:00:21 AM

Monday, April 07, 2014 11:00:21 AM

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Seeking Alpha Article - VegaMatrix potential $14-$19M annually

http://seekingalpha.com/instablog/24473493-d-r-lewis/2817863-growlife-phot-inks-deal-with-vegamatrix-potentially-worth-14-19-million-in-annual-gross-revenue

GrowLife (PHOT) Inks Deal With VegaMatrix Potentially Worth $14-$19 Million In Annual Gross Revenue [Edit or Delete]0 comments
Apr 7, 2014 11:12 AM | about stocks: PHOT


Today, GrowLife announced it will be the exclusive distributor of the VegaMatrix product line and Kyle Kuhlman designed nutrients and supplements. Growing aficionados are no doubt familiar with this product line, having been used to help grow multiple Cannabis Cup winners.

Using one paragraph from the press release, an interesting projection can be 'read between the lines' and revenue projections materialize.

"Nutrients and supplements for growing legal cannabis are a major part of GrowLife's business in its retail and online sales channels. Nutrients and supplements for the legal cannabis industry typically represent approximately 30-40% of the reported $1.6 billion annual sector sales in the U.S. and consistently represent some of the highest gross margin products in hydroponics stores across the country. GrowLife expects to capture a minimum 3% market share with the VegaMatrix line, focused principally on the premium quality growers, which is already the Company's core market emphasis.

If nutrients and supplements are 30%-40% of the $1.6B in sales, that would mean they account for between $480-640 Million per annum.

A 3% market share would equate to between $14.4 - $19.2M per annum in gross revenue accretive to GrowLife.

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Link to PR: http://finance.yahoo.com/news/growlife-secures-exclusive-rights-represent-121500790.html?soc_src=mediacontentstory

Interesting projections.

Disclosure: I am long PHOT.

Themes: Marijuana, growth, nutrients and supplements Stocks: PHOT

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