Acquisition Brings the Number of GrowGen
Locations in Michigan to
Six
DENVER, Oct. 20, 2020 /PRNewswire/ - GrowGeneration
Corp. (NASDAQ: GRWG), ("GrowGen" or the "Company") the nation's
largest chain of specialty hydroponic and organic garden centers,
today announced its acquisition of Big Green Tomato ("BGT"), a
two-store chain in Battle Creek
and Taylor, Michigan. Big Green
Tomato is one of Michigan's
premier hydroponic equipment stores, founded in 2011 by a team of
experienced executives with 25 years of combined experience in the
industry. BGT has two well established locations with strong
commercial operations and annual revenues approaching $16M. As part of the transaction, GrowGen
purchased the 10,000 square-foot retail property in Battle Creek.
With the BGT acquisition, the Michigan market is expected to generate annual
revenues well over $40M for GrowGen.
It also brings the total number of GrowGen hydroponic garden
centers in Michigan to six, with
locations in Battle Creek,
Grand Rapids, Livonia, Taylor, South
Lansing and West
Lansing.
"Michigan's recreational
cannabis market is growing exponentially," said Tony Sullivan, GrowGen's COO. "We're encouraged
by new state regulations that will allow for more cultivation
licenses, which in turn will fuel continued expansion and growth
for GrowGeneration's customer base in the state."
Michigan Market and Projections:
- Currently in Michigan there
are 250+ class C medical grows of 1,500 plants each and 50+ class C
adult use grows of 2,000 plants each (note adult use has only been
in effect in Michigan for less
than nine months)
- Michigan has the
second-highest medical marijuana market in the country, behind
California
- Michigan's 2020 adult-use
sales are estimated to total between $400M and $475M
- Michigan's recreational
cannabis market is on track to surpass $1B over the next couple of years
For more informatio.n about GrowGeneration, or to locate its
stores, please visit www.growgeneration.com.
About GrowGeneration Corp.:
GrowGen owns and operates specialty retail hydroponic and
organic gardening stores. Currently, GrowGen has 31 stores, which
include 5 locations in Colorado, 6
locations in California, 2
locations in Nevada, 1 location in
Washington, 6 locations in
Michigan, 1 location in
Arizona, 1 location in
Rhode Island, 4 locations in
Oklahoma, 1 location in
Oregon, 3 locations in
Maine and 1 location in
Florida. GrowGen also operates an
online superstore for cultivators at growgeneration.com. 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 the major states in the US and
Canada. Management estimates that
roughly 1,000 hydroponic stores are in operation in the US. By
2025, the global hydroponics system market is estimated to reach
approximately $16 billion.
Forward Looking Statements:
This press release may include predictions, estimates or other
information that might be considered forward-looking within the
meaning of applicable securities laws. While these forward-looking
statements represent our current judgments, they are subject to
risks and uncertainties that could cause actual results to differ
materially. You are cautioned not to place undue reliance on these
forward-looking statements, which reflect our opinions only as of
the date of this release. Please keep in mind that we are not
obligating ourselves to revise or publicly release the results of
any revision to these forward-looking statements in light of new
information or future events. When used herein, words such as "look
forward," "believe," "continue," "building," or variations of such
words and similar expressions are intended to identify
forward-looking statements. Factors that could cause actual results
to differ materially from those contemplated in any forward-looking
statements made by us herein are often discussed in filings we make
with the United States Securities and Exchange Commission,
available at: www.sec.gov, and on our website, at:
www.growgeneration.com.
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SOURCE GrowGeneration