Hydroponics Innovator GrowGeneration Is Selling Stock, Hopes To Raise $125M
GrowGeneration Corp. (NASDAQ:GRWG) is looking to raise $125 million via a public offering.
According to a filing with the U.S. Securities and Exchange Commission (SEC), the Denver-based cannabis player has granted its underwriters a 30-day option to purchase up to an additional 15% of its shares of common stock offered via the public offering.
Oppenheimer & Co. and Stifel are the joint book-runners managing the process.
The final terms of the offering will be disclosed in a final prospectus supplement to be filed with the SEC.
GrowGeneration remains tight-lipped on the offering, but the company is likely looking to use the proceeds to bolster expansion efforts.
The filing comes roughly one month after it agreed to acquire The GrowBiz for an undisclosed price. The deal is projected to be completed before the end of fiscal 2020. With GrowBiz, GrowGeneration will own a total of 10 hydroponic garden centers in California and two in Oregon. The company noted that this addition to its portfolio should help boost annual revenues reaching $50 million.
GrowGen CEO Darren Lampert said at the time that the deal was part of an expandsion strategy, and represents the company's "continued investment in purchasing the 'best of breed' hydroponic operations in the U.S."
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