GrowGenertion to open branch in Canada for home and commercial cannabis growers

GrowGeneration Corp (OTCQX:GRWG) said on Tuesday it is forming GrowGeneration Canada to offer cultivators a one-stop operation for all of their supply needs.

GrowGeneration is one of the largest specialty retail hydroponic and organic gardening stores, selling to both the commercial and home cannabis markets.

The company said it will initially operate out of Ontario and British Columbia and plans to finance this entity and its acquisitions independently from GrowGen USA. The company has begun discussions with several acquisition targets, expected to total over $20 million.

“With over 11 million square feet of cultivation in place, plus laws that include home growing and micro-cultivation licenses, makes Canada a great new market opportunity for us. GrowGen Canada will seek to acquire profitable wholesale and retail hydroponic and grow supply businesses and access the Canadian public markets to finance these targeted acquisitions,” said co-founder and chief executive Darren Lampert.

READ: GrowGeneration is fertile ground for investors looking to cultivate their cannabis portfolio without risk

On October 17, 2018, Canada will become the largest country in the world to legalize cannabis.

About 4.9 million Canadians used cannabis and consumed more than 20 grams of marijuana per person in 2017, according to estimates from Statistics Canada.

Canada currently has 114 licensed cannabis producers and another 500 in the pipeline according to Health Canada.

Facilities licensed by the Canadian government to cultivate cannabis surpassed 11 million square feet (1 million square meters) for the first time in June, according to data from Health Canada.

Shares of GrowGeneration were down 1.14% to $4.34 late on Tuesday.

GrowGen USA owns and operates specialty retail hydroponic and organic gardening stores. Currently, the company has 19 stores, including 6 locations in Colorado, 6 locations in California, three in Michigan, and one each in Las Vegas, Washington, Rhode Island and in Oklahoma. GrowGen USA is based in Denver, Colorado.

Reporting by Rene Pastor, contactable on [email protected]

Story by ProactiveInvestors