GrowGeneration Corp. (OTCQX: GRWG), a product distributor for one of the largest specialty retail hydroponic and organic gardening stores in the U.S., announced this week that the company has raised $10 million from strategic investors.
Gotham Green Partner is a New York-based private equity firm that invests in the cannabis industry. The company invested a total of $7.5M where Cannabis investors Merida Capital Partners and Navy Capital also invested $1.5 million and $1.0 million.
This is not the first or last time that large private equity firms, based out of New York, are going to fund up and coming companies involved in the industrial hemp and cannabis sectors. Investing in ancillary businesses that support the function of the thriving cannabis industry is a safer bet due to cannabis still being labeled as a schedule one drug by the DEA.
Jason Adler the managing partner at Gotham Green Partner gave this statement in the press release:
“We are excited to be a significant shareholder and partner to the GrowGen team. With a robust pipeline of accretive acquisitions, GrowGen is at an inflection point and is well-positioned to benefit from the anticipated growth in the markets that it serves. We look forward to assisting the Company in executing on strategic opportunities and accelerating its plans for future growth.”