GrowGeneration Shares Jump On Heels Of LA-Based Hydroponic Lease Deals

GrowGeneration Corp. GRWG entered two leases in Los Angeles County, California, which will be adapted for the company’s two new Super Hydroponic Garden Centers.

The details of the leases weren’t disclosed.

The company noted that these leases represent 122,000 sq. ft. of retail and distribution space, enabling it to run the biggest hydroponic garden centers in Southern California.

One location is situated at 1651 Naomi Street close to the Long Beach Ports, while the other is placed at 19516 South Susan Street in Rancho Dominguez.

GrowGen previously revealed its goal to own and operate a total of 55 garden centers in the U.S. by the end of 2021, and with these new leases, it has already reached 52 locations. Those stores cover almost 800,000 square feet of retail and warehouse space, and 19 of them are in the state of California.

"As the cannabis and hydroponics industries continue to evolve at a rapid pace, we are working to define what the next generation of garden centers will look like,” Darren Lampert, GrowGeneration's CEO stated. “Our Super Hydroponic Garden Centers will offer the largest selection, expert advice from our professional staff, and best-in-class customer service.

Lampert added that these retail locations aim to meet the needs of big commercial markets, “in addition, these hydroponic garden centers will help us consolidate and distribute our private label products that are an important part of our growth plans.”

Recent Acquisitions

The company already had four acquisitions this year, starting January when it has purchased Washington-based Indoor Garden & Lighting to expand across Seattle and Tacoma. Later, it bought Grow Depot, a two-store chain in Auburn and Augusta, Maine.

The third purchase was of Grow Warehouse, a four-store chain of hydroponic and organic garden stores in Colorado and Oklahoma, while the fourth was also in California, with GrowGen buying San Diego Hydroponics & Organics, a four-store chain of organic, hydroponic, and aquaponics garden centers.

"We are building destination locations for commercial and craft growers in the largest and most active cultivation markets in the country. We plan to build several GrowGen Super Garden Centers across the U.S. to serve the growing number of commercial and craft growers," Lampert concluded. 

GrowGeneration opened Tuesday at $39.99 per share and climbed to $45.11 — up 19.38% — by 12:43 p.m. EST.