GrowGeneration to float $125 million in new stock deal

338 0

Investors have a chance at grabbing a piece of a quickly-advancing company with ties to cannabis

Hydroponic gardening is the number one alternative method of growing cannabis plants indoors – the most common one remains a good potting soil. However, hydroponic growing has proven itself time and time again to be more efficient, cleaner and easier to control than by using soil. One company that has taken full advantage of that experience from growers is GrowGeneration, which has continued to expand and prosper due to the ever-increasing popularity of hydroponic home growing. So much so that the company just announced that it is floating a $125 million secondary issue of its common stock.

GrowGeneration caters to the home cultivator of marijuana, be it just growing two or three plants in a closet for personal use, or 100 plants intended to supply a wider circle of friends. It has every piece of hardware that is required for the hydroponic grower and experienced and knowledgeable personnel there to answer questions and provide guidance for the home cultivator. It’s no wonder that the company is experiencing so much growth and success.

Estimates put the annual overall value of the hydroponic business worldwide at around $16 billion and an annual revenue figure at $80 million. GrowGeneration (NASDAQ: GRWG) now operates 36 outlets and has plans for opening more. Although GrowGeneration has not announced what it will do with the proceeds from this latest sale, the company has been aggressively absorbing additional physical resources to its portfolio. The majority of their outlets now reside in states where cannabis is legal to grow.

Now, with five new states legalizing cannabis on one level or the other, more opportunities are opening up for the hardware supplier to expand into those areas, as well, and continued growth and expansion is expected.