Phototron Holdings, Inc. (OTCBB: PHOT) (OTCQB: PHOT), the Los Angeles hydroponic grow box company leading the grow your own revolution, today announced that it has signed a letter of intent (LOI) to acquire SG Technologies Corp., a leading manufacturer of hi-powered light emitting diode (LED) products sold under the Stealth Grow brand that speed indoor growing and require very little power. The proposed merger is expected to close in the next 30 days in an all-stock transaction.
The management team at Phototron is excited to announce the signing of an LOI with SG Technologies, said Craig Ellins, Phototrons CEO. We expect the proposed merger to expand our current product offerings and provide additional financial strength as we look to integrate the Stealth Grow line, which is highly respected amongst top horticulturalists. We also anticipate exciting new product synergies as we combine Phototrons innovative hydroponic grow systems with Stealth Grows industry-leading LEDs.
SG Technologies is a leader in LED grow light technology. Selling products under the popular Stealth Grow brand, the company is comprised of a team of experienced horticulturists and engineers who have worked to bring LEDs to the forefront of indoor horticulture by creating a superior line of LED grow lights.
SG Technologies manufactures its own components, and as a result the company has an incredible amount of flexibility in testing its products. Generations of lights have been tested on numerous home-grown plants to create the most advanced combination of spectrum and intensity of any LED grow light available today.
This LOI is a significant step forward for both companies, said Sterling Scott, CEO of SG Technologies. We believe that combining our operations is a win-win oportunity for both Phototron and Stealth Grow brands and will lead to innovative new products that benefit our loyal customers and strategic partners.
The proposed acquisition is expected to complement Phototrons existing direct sales and online initiatives for its innovative hydroponic grow systems, which are designed to serve both the $ 30 billion home gardening and $ 1.7 billion medical marijuana markets.
The completion of the acquisition is subject to certain conditions, including, but not limited to, the negotiation and execution of a definitive acquisition agreement and the approval by the Phototrons and SGTs respective boards of directors.
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