GrowGeneration Upsizes Offering To $150M To Support Expansion Efforts

GrowGeneration Corp. GRWG is seeking to raise additional funds via an upsized underwritten public offering of 5 million shares at a price of $30.00 per share.

The Denver-based hydroponics innovator hopes to raise roughly $150 million (prior to subtracting the offering-related costs).

This is not a new offering, but actually an upsize of the recently announced offering of $120 million of common stock.

GrowGeneration has further enabled the underwriters with an option to buy an extra 750,000 shares for the next 30 days. It should close the offering on or around December 11.

Joint book-running managers are still Oppenheimer & Co. and Stifel, while co-managers for the offering include Craig-Hallum Capital Group LLC, Ladenburg Thalmann & Co. Inc., Lake Street Capital Markets, LLC.

The company noted it plans to utilize collected net proceeds to enhance its network of hydroponic/garden centers via organic growth and acquisition.

It has already started to work on its expansion, when about one month ago it has announced the acquisition of The GrowBiz that should be finalized prior to the end of fiscal 2020. This deal should enable the company to raise its annual revenues to hit the $50 million target.

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