Phototron Holdings, Inc. (OTCBB: PHOT.OB - News) (OTCQB:PHOT.OB - News), the designer, manufacturer and seller of the innovative Phototron Hydroponic Indoor Grow System, 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 for indoor horticulture under the “Stealth Grow” brand.
The definitive acquisition or merger agreement is anticipated to be signed in the next 30 days, with the closing of the all-stock transaction to occur shortly thereafter.
“The management team at Phototron is extremely pleased to announce the signing of an LOI with SG Technologies,” said Craig Ellins, Phototron’s CEO. “We expect the proposed acquisition to significantly expand our current product offering and provide additional financial strength as we look to integrate the Stealth Grow line, which is highly respected amongst top horticulturists. In addition, we anticipate exciting new product synergies down the road as we combine Phototron’s innovative hydroponic grow systems with Stealth Grow’s industry-leading LEDs.”
SG Technologies is a leader in LED grow light technology. Selling products under the highly-recognized “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 will create a win-win for both the long established Phototron and Stealth Grow brands, as well as create numerous advantages for our loyal customers and strategic partners.”
The proposed acquisition is expected to complement Phototron’s existing direct sales and online initiatives for its innovative hydroponic grow systems, which are designed to serve both the $30 billion home gardening market and the $1.7 billion medical marijuana community. Consumers can realize significant financial savings, convenience and quality with Phototron’s range of products across these market segments.
The completion of the acquisition will be subject to certain conditions to closing, including, but not limited to, the negotiation and execution of a definitive acquisition or merger agreement and the approval by Phototron’s and SGT’s respective board of directors.