GrowGeneration Boosts Projected 2018 Revenue to $37 Million

In an 8-K filing after the close, GrowGeneration (OTC: GRWG) shared a copy of slides that will be presented at the ROTH Conference in Dana Point, CA over the next few days. The company provided substantial new information about its operations, but one of the most interesting slides detailed its outlook for revenue and EBITDA over the next three years. The wholesale distributor of hydroponic grow supplies expects to produce sales of almost $85 million in 2020 and increased its 2018 guidance from $30 million to $37 million:

The company revealed that it intends to spend over $20 million in acquisitions this year and has made already $15 million in acquisitions since its inception in 2014, including three generating $9 million annual revenue so far this year. GrowGeneration explained its acquisition model, suggesting that each $1 million of capital invested yields about $3 million in annual sales.

GrowGeneration has operations presently in Colorado, California, Nevada, Washington and Rhode Island, and it is looking to expand into Oregon, Arizona, Florida and several states in the Midwest and the East Coast, with a near-term focus on Oregon, Michigan, Massachusetts and further into California.

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Exclusive article by Alan Brochstein, CFA
Alan Brochstein, CFA
Based in Houston, Alan leverages his experience as founder of online community 420 Investor, the first and still largest due diligence platform focused on the publicly-traded stocks in the cannabis industry. With his extensive network in the cannabis community, Alan continues to find new ways to connect the industry and facilitate its sustainable growth. At New Cannabis Ventures, he is responsible for content development and strategic alliances. Before shifting his focus to the cannabis industry in early 2013, Alan, who began his career on Wall Street in 1986, worked as an independent research analyst following over two decades in research and portfolio management. A prolific writer, with over 650 articles published since 2007 at Seeking Alpha, where he has 70,000 followers, Alan is a frequent speaker at industry conferences and a frequent source to the media, including the NY Times, the Wall Street Journal, Fox Business, and Bloomberg TV. Contact Alan: Twitter | Facebook | LinkedIn | Email

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