Business
GrowGeneration Purchases All the Assets of H2O Hydroponics, LLC
DENVER, June 17, 2020 /PRNewswire/ - GrowGeneration Corp. (NASDAQ: GRWG), ("GrowGen") or the "Company"), the largest chain of stand-alone specialty hydroponic
About this update from Growgeneration Corp.
[{"type":"text","content":"DENVER, June 17, 2020 /PRNewswire/ - GrowGeneration Corp. (NASDAQ: GRWG), (\"GrowGen\") or the \"Company\"), the largest chain of stand-alone specialty hydroponic and organic garden centers, currently with 27 locations, is pleased to announce that the Company has purchased the assets of H2O Hydroponics, LLC (\"H2O\"), the largest hydroponic garden center in Lansing, MI. Following the asset purchase, the Company will open a new location in Lansing, MI, which will serve as a retail/commercial operation, as well as a fulfillment center, supporting the Company's online and direct-to-farm deliveries. \n\n \n \n \n \n \n \n\n \nGrowGen CEO Comments:\nDarren Lampert, CEO, commented, \"H2O Hydroponics is the largest hydroponic store in Lansing, MI. with 2019 sales of approximately $4.0 million. We are consolidating our current West Lansing location, with H2O, and relocating into a newly built 15,000 square foot super hydroponic garden center, that we expect will generate over $7.0 million in sales. With this acquisition, we continue to increase our footprint and strengthened our supply chain in the Michigan market.\"\nMichigan Market:\nAccording to a March 2020 report, \"The Market for and Economic Impact of the Adult-use Recreational Marijuana Industry in Michigan\" by Michigan State University Product Center Food-Ag-Bio: \n\"It is estimated that the level of cannabis retail sales once it becomes widely available is approximately $3 billion with a total economic impact in excess of $7.8 billion. Employment in businesses along the marijuana supply chain is estimated to be 13,500 with a total economic impact on employment in the state of 23,700. Total tax revenue raised is $495.7 million of which $298.6 million is excise taxes and $197.1 million are in the form of sales taxes.The supply chain for marijuana was also analyzed. It appears that the supply chain is maturing rapidly, with several well-funded vertically integrated firms already operating. Both indoor and outdoor growing operations are in place but over time it appears that much of the production will take place in dedicated indoor growing facilities.\"\nIn November 2018, Michigan became the 10th state to legalize cannabis for adults and the first state to do so in the Midwest. Within a residence, adults may grow up to 12 plants and/or possess up to 10 ounces. Medical cannabis i...