GrowGeneration GRWG, a specialty retail hydroponic and organic gardening stores, completed a private placement totaling $12.8 million.
The company issued 4,123,254 shares at a price of $3.10 and 2,061,632 warrants exercisable at $3.50 per share.
GrowGeneration’s institutional investors participated in the offering, including a $4 million investment from Gotham Green Partners, $2 million from Merida Capital Partners and $1.3 million from Navy Capital.
Funds advised by JW Asset Management also participated with a $3 million investment in the offering. JW has been an active investor in the cannabis sector since 2014.
"With the completion of our oversubscribed offering, the company now has over $16 million of cash on the balance sheet to execute on multiple acquisitions, with several planned to close in the 3rd and 4th quarters of 2019,” said Darren Lampert, CEO of GrowGeneration. “These acquisitions, when completed, are expected to propel our company to over $100 million in annual sales."
GrowGeneation's stock traded higher by 7.2% at $3.26 per share Wednesday afternoon.
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