Cannabis-focused hydroponics giant GrowGeneration Corp. GRWG announced this week that its board of directors has authorized the company's first share repurchase program to repurchase up to $6 million of its outstanding common stock.
Beginning on April 1, the share repurchase program will continue for up to one year, allowing repurchases to be made in the open market.
Darren Lampert, the company's co-founder and CEO, explained what the move means for GrowGen.
"Today's announcement of our share repurchase program further underscores our conviction in the strength of our underlying business and our view that GrowGen shares remain undervalued," Lampert said. "This program acts as one pillar of our shareholder value creation strategy as we continue to evaluate all potential uses for our strong balance sheet, including reinvesting in our brands, strategic acquisitions, and stock repurchases to enhance long-term shareholder value."
Lampert was a panelist at the Benzinga Cannabis Capital Conference this past September in Chicago where he talked about the importance of understanding and accounting for differences in rules and regulations in each state.
As the largest chain of hydroponic gardening centers, GrowGen operates in 18 states and has roughly 1 million square feet of retail space. The non-plant-touching cannabis company has a rapidly growing brand of products that help producers better grow their crops.
“You need a business plan that makes sense, and you have to understand where every nickel goes and the challenges you’re up against,” Lampert said the during fall Benzinga event which returns to Florida at a new venue in Hollywood on April 16-17, 2024.
The company recently reported an 18.8% year-over-year revenue drop in 2023. However, the decline was accompanied by an improved gross margin attributed to a strategic shift towards proprietary product sales.
"Our profit margins increased nearly 200 basis points as well, driven by more proprietary product sales and consumable product sales as a percent of total sales," Lampert said.
Looking forward to 2024, GrowGen projects revenue to be in the range of $205 million to $215 million and aims for an adjusted EBITDA between a $2 million loss and a $3 million profit. The company is focusing on brand enhancement and entering the home gardening market, indicating a broadening of its product portfolio and market reach.
GRWG Price Action
GrowGen's shares traded 0.98% higher at $3.08 per share during the after-hours session on Wednesday.
The Benzinga Cannabis Capital Conference is returning to Florida, in a new venue in Hollywood, on April 16 and 17, 2024. The two-day event at The Diplomat Beach Resort will be a chance for entrepreneurs, both large and small, to network, learn and grow. Renowned for its trendsetting abilities and influence on the future of cannabis, mark your calendars – this conference is the go-to event of the year for the cannabis world.
Get your tickets now on bzcannabis.com – Prices will increase very soon!
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The Benzinga Cannabis Capital Conference is coming to Florida
The Benzinga Cannabis Capital Conference is returning to Florida, in a new venue in Hollywood, on April 16 and 17, 2024. The two-day event at The Diplomat Beach Resort will be a chance for entrepreneurs, both large and small, to network, learn and grow. Renowned for its trendsetting abilities and influence on the future of cannabis, mark your calendars – this conference is the go-to event of the year for the cannabis world.
Get your tickets now on bzcannabis.com – Prices will increase very soon!