Scotts Miracle Gro knows what it takes to grow plants, so the company now wants to partner with cannabis companies in order to increase its financial strength. Today, the company announced a cannabis-specific investment entity.
The Hawthorne Collective is said to be looking for minority investors in businesses not being pursued currently by ScottsMiracle-Gro’s cannabis subsidiary, The Hawthorne Gardening Company. This company, which has dozens of cannabis-focused garden brands, owns and operates The Hawthorne Collective.
First investment by The Hawthorne Collective is a convertible loan of $150 million to Toronto’s RIV Capital. This Toronto-based cannabis acquisition and investment firm, has been effected. According to the company’s press release, the note accrues interest at 2.03%, and upon close, RIV Capital will become The Collective’s preferred vehicle for future investments.
Scotts Miracle-Gro now has a way to enter the rapidly growing world of cannabis with this new investment vehicle. The Hawthorne Gardening Company is its operating subsidiary and already has some of the most powerful cannabis brands.
In a statement, Jim Hagedorn (Scotts Miracle-Gro CEO and Chairman) stated that “Indeed the Hawthorne Gardening Company’s growth over the last six years has created significant shareholder value.” It has also allowed us to gain rare expertise and insights regarding cannabis without having to be involved with the plants-touching aspect of the business. We are now looking to expand our investment in the cannabis industry via The Collective and continue to seek near-in strategic acquisitions that will be incorporated into Hawthorne Gardening.
Publiated at Tue 10 August 2021, 13:36:05 (+10000).