Acquisition marks the retailer's entry into
Arizona's booming medical cannabis
market
DENVER, Oct. 12, 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 Hydroponics Depot, Phoenix's largest indoor and outdoor garden
center. With the addition of Hydroponics Depot, GrowGen's portfolio
of hydroponic garden centers now includes 29 stores across 11
states.
GrowGen's entry into the Arizona market comes as voters consider Prop
207, which would legalize limited possession, cultivation and use
of marijuana for adults ages 21 years or older. If approved, it is
estimated that Arizona's cannabis
market could grow from over $700
million market in 2020 into a $2
billion market, including both recreational and medical
marijuana.
"We're excited to add Hydroponics Depot to our growing
portfolio, with year-to-date sales in excess of $5 million and year-over-year growth at 50
percent," said Tony Sullivan,
GrowGen's COO. "Importantly, it represents our 11th
state and our first retail operation in Arizona, a key market in GrowGen's growth
plan. We see tremendous potential from both a medical and
recreational standpoint."
Arizona Market and Projections:
- Arizona is one of the largest
medical cannabis markets in the country, with projected 2020 sales
of $700 million to $900 million.
- Retail sales of medical marijuana products in the state rose
nearly 20% from January to May, according to the Arizona state estimates.
- If Prop 207 is approved, Arizona could grow from an estimated
$770 million to $2.0 billion with both recreational and medical
cannabis.
For more information 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 29 stores, which include 5 locations in
Colorado, 6 locations in
California, 2 locations in
Nevada, 1 location in Washington, 4 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.
Connect:
- Website: www.GrowGeneration.com
- E-commerce: https://www.growgen.pro/
- Instagram: growgen
- Facebook: GrowGenerationCorp
- Twitter: @GrowGenOK
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SOURCE GrowGeneration