6 days GrowGeneration Corp – A Unique Play on Cannabis ($GRWG) Reddit     

GrowGeneration – ($GRWG)

Initial PT —> $75usd

1/21/22 $75 Cs @ 10.00

The company owns and operates retail hydroponics and organic specialty gardening retail outlets. It is engaged in selling of products, such as organic nutrients and soils, advanced lighting technology, hydroponic, and aquaponic equipment, and other products needed to grow indoors and outdoors. The products include harvesting, soils and mediums, containers and trays, pest and disease control, nutrients and additives, hydroponics, grow lights, fans and ventilation, and cloning/propagation.

The company has 40 stores in 11 states, and it expects to increase its footprint to 55 stories in 15 states this year. As it expands, GrowGeneration’s stores are getting larger, and it is looking to build more distribution hubs. The company recently signed a 50,000-square-foot lease in Miami, and it is in the process of signing a lease of the same size in Los Angeles. Each distribution hub supports commercial and online fulfillment while also acting as a retail store.

GrowGeneration is the Industry leader in commercial sales and large-scale grow design. The GrowGeneration Commercial Team is armed with industry leading professional consultants. Our team is here to help fully manage any size or scale project. We offer turnkey facility designs, cultivation room design, and on-site project consultation.

Management

Michael Salaman – President and Co-Founder – CEO & President at Skinny Nutritional Corp. (2000-2014) – 25 years experience in consumer products, business development & brand marketing – BBA from Temple University

Darren Lampert – CEO and Co-Founder – Partner at Law Firm Lampert & Lampert (1987-2000) – Independent Portfolio Manager (2000-2014) – Holds a BS from Ithaca College and a JD from Bridgeport University School of Law

Tony Sullivan – Chief Operating Officer, Executive VP – 20+ years at Foot Locker Inc. – Executive Vice President and Chief Operating Officer of Forman Mills – Senior Vice President Operations for Dollar Express – Senior Vice President, Chief Operating Officer Aimee Lines

Lampert and Salaman founded the company in 2014 and have stood at its helm since then, a continuity of leadership that Lampert considers relatively rare in the cannabis space. He brings his experience as a securities attorney and from Wall Street to the CEO role. The two business partners started the company with the intention of taking it public. Ultimately, they want to make GrowGeneration the largest hydroponics chain in the country.

While Lampert and Salaman remain at the head of the company, GrowGeneration has added new talent to its team. Tony Sullivan joined the company as COO at the end of 2019, bringing with him 30 years of big-box store experience. Last year, Michael Goldman joined the company as Vice President of Store Operations and Loss Prevention, playing an important role as GrowGeneration purchases and builds out more stores.

GrowGeneration has 450 employees right now, and Lampert expects that number to grow to 500 soon. The company emphasizes working at GrowGeneration as a career rather than just a job. It offers its employees 401ks, option plans and health insurance.

San Diego Hydroponics Acquisition

This morning, GrowGeneration Acquired San Diego’s Leading Hydroponics Supplier, Expands Footprint in Southern California.

Acquisition Brings Number of GrowGen Locations Nationwide to 50

“Southern California is a priority market for GrowGeneration, and we are excited to add San Diego Hydroponics & Organics to our ever-expanding footprint there,” said Darren Lampert, GrowGen’s CEO. “As the leading hydroponics supplier, San Diego Hydroponics & Organics strategically positions GrowGen to conveniently provide our services to commercial growers in the Southern California market.”

Founded in 2001 by Todd Kent, San Diego Hydroponics & Organics first opened its doors with an 800-square-foot store in Pacific Beach, California. Since then, San Diego Hydroponics & Organics has expanded to four locations with more than 20,000-square-feet of retail space and 20 employees, who will join GrowGeneration’s team of over 500 grow professionals as part of the transaction.

GrowBiz and Grassroots Hydroponics Acquisitions

GrowGeneration also recently acquired GrowBiz and Grassroots Hydroponics. GrowBiz was the third largest hydroponic gardening chain in the country, which brings a significant competitor into the GrowGeneration fold, according to Lampert. This acquisition is helping the company to expand its presence in northern California, and it brings with it significant talent and $50 million in profitable revenue, and it added industry veteran Ross Haley, the founder of GrowBiz, as an advisor.

In 2020, most of the company’s commercial revenue was generated by East Coast operations. The GrowBiz acquisition, as well as the Grassroots Hydroponics deal, is a part of the company’s push to create a larger West Coast presence. Grassroots Hydroponics is a three-store chain outside of Los Angeles that will also serve as a part of that West Coast strategy. It has been in business for more than a decade and does $20 million in business, according to Lampe.

GrowGeneration Hemp Corp

In September 2018, GrowGeneration Opened Hemp Corp to Sell Agricultural Products to Hemp Farms

for the purpose of developing and selling hemp agricultural products to the growing number of hemp farms in the U.S. Information compiled by states and industry, indicates that there were more than 25,500 acres of hemp production in 2017, up from 9,770 acres in 2016. In 2017, there were 1,420 registered or licensed growers and 32 universities conducting hemp research nationwide. Currently, GrowGen services over 2,000 acres of hemp farms, with cultivators that include International Hemp Exchange, Liberty Tree CBD and Green Tara Farms to name a few.

  • Focused sales efforts targeting the 1,000’s of hemp farms around the country. Today, Colorado, Kentucky, New York and Oregon have the most licensed hemp acres in production.
  • Develop and sell products with hemp will include a line of mulch, top soils for organic pest elimination, weed suppression and soil additives.
  • Obtaining distribution rights to equipment that delivers more automation and cost savings to process the whole hemp plant.
  • Form supply chain relationships and deliver value add services, particularly focused on the extraction of hemp-derived oils and hemp by-products.

Ecommerce

The company launched its ecommerce operations in the fall of 2018. That division has grown from approximately $2 million to $12 million, and Lampert expects it to exceed $20 million this year.

In addition to generating revenue, ecommerce operations serve as an effective marketing tool for the company. The GrowGeneration website, which offers resources like how-to videos, receives more than 200,000 unique visitors. The website provides lead generation for the company’s stores, and GrowGeneration is starting to connect its online service to its stores with online ordering and in-store pickup.

Recent Financials

HIGHLIGHTS

1) Record 2020 Revenue of $192 Million, Up 140% 2) Same-Store Sales Up 63% 3) 2021 Revenue Guidance Raised to $335 million-$350 million 4) 2021 Adjusted EBITDA Guidance Raised to $38 million – $40 million 5) Projected Number of Operating Garden Centers in 2021 Increased to 55

GrowGeneration

Stay safe & GLTA!

I am not a financial advisor, so please do your own DD

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