A company focused on the cannabis cultivation market is getting some extra support in trading
According to a preliminary list posted on June 5, GrowGeneration Corp. has announced its addition to the broad-market Russell 3000® Index. The largest chain of specialty hydroponic and organic garden centers confirmed that the inclusion will be effective at the conclusion of the 2020 Russell Index’s annual reconstitution, scheduled for June 29. GrowGen is a provider of retail supplies to many companies, including those in the cannabis industry.
GrowGen operates 27 stores in states like Colorado, California, Nevada and Washington, among others, and offers thousands of products for growers. The inclusion in the Russell 3000 Index is a major milestone for the company, as it captures the 4,000 largest US stocks as of May 8, ranking them by total market capitalization. The soon to begin membership in the US all-cap Russell 3000® Index will be valid for one whole year, and it comes with automatic inclusion in the large-cap Russell 1000® Index or small-cap Russell 2000® Index.
“The inclusion in the Russell 3000 is a major corporate milestone and reflects the continued growth of our Company. GrowGen continues to focus on expanding the number of our hydroponic garden centers, while increasing revenue and gross profit,” said Darren Lampert, CEO of GrowGen. “We believe our Russell 3000 listing will increase long-term shareholder value by improving awareness, liquidity and appeal to institutional investors.”
Russell indexes have the advantage of being widely used by investment managers for index funds as well as active benchmarks for active investment strategies. They are part of FTSE Russell, which is a leading global index provider.