GrowGeneration Adds $10 Million in Growth Capital Led By Strategic Investor Gotham Green Partners
DENVER, CO, May 9, 2018 /PRNewswire/ – GrowGeneration Corp. (OTCQX: GRWG), (“GrowGen” or the “Company”) one of the largest specialty retail hydroponic and organic gardening stores, announced today that it has received $10 million from strategic investors, including a $7.5 million investment from Gotham Green Partners (“GGP”). GGP is a New York-based private equity firm focused on deploying capital into the emerging global cannabis industry. Cannabis investors Merida Capital Partners and Navy Capital also invested $1.5 million and $1.0 million, respectively.
Darren Lampert, Co-Founder and Chief Executive Officer of GrowGen, said “With this additional capital, the Company now has over $17 million of cash on the balance sheet to execute on multiple acquisitions, with several planned to close in the 2nd and 3rd quarters of 2018. In addition to providing growth capital, GGP’s position as one of the premiere private equity firms focused exclusively on cannabis will enable GrowGen to leverage GGP’s network to source additional business opportunities and revenue streams. We are also pleased that our existing institutional investors, Merida Capital Partners and Navy Capital, are reinforcing their confidence in the company with additional capital commitments.”
We are excited to be a significant shareholder and partner to the GrowGen team. With a robust pipeline of accretive acquisitions, GrowGen is at an inflection point and is well-positioned to benefit from the anticipated growth in the markets that it serves. We look forward to assisting the Company in executing on strategic opportunities and accelerating its plans for future growth.
Jason Adler, Managing Partner of GGP
About GrowGeneration Corp.:
GrowGeneration Corp. (“GrowGen”) owns and operates specialty retail hydroponic and organic gardening stores. Currently, GrowGen has 17 stores, which includes 7 locations in Colorado, 3 locations in California, 3 locations in Michigan, 2 locations in Nevada, 1 location in Rhode Island and 1 location in Washington. GrowGen carries and sells thousands of products, including organic nutrients and soils, advanced lighting technology and state of the art hydroponic equipment to be used indoors and outdoors by commercial and home growers. Our mission is to own and operate GrowGeneration branded stores in all of the major legalized cannabis states. Management estimates that roughly 1,000 hydroponic stores are in operation in the U.S. According to New Frontier Data, by 2020 the cannabis market is estimated to reach over $23 billion with a compound annual growth rate of 32%.
About Gotham Green Partners:
Gotham Green Partners is a New York-based private equity firm focused on deploying capital into cannabis and cannabis-related enterprises on a global scale. The firm manages a diversified portfolio of investments and is actively investing across the cannabis value chain.