Denver CO-based GrowGeneration Corp. (OTC: GRWG), a large national operator of retail hydroponic and organic gardening stores with 19 locations serving the commercial and home cannabis markets, announced it formed GrowGeneration Hemp Corp. The purpose is to focus on selling hemp agricultural products to the growing number of hemp farms in the U.S.
GrowGen already serves over 2,000 acres of hemp farms, including International Hemp Exchange, Liberty Tree CBD and Green Tara Farms.
Darren Lampert, CEO, said, “The hemp plant can be used as an organic pest management solution, as well as a nutrient-rich additive for soils, which we will develop into a unique line of products for our customers. Further, the hemp farmer uses many of the same items we already stock and sell, so entering the hemp cultivation market is a natural one for GrowGen.”
Lampert also said, “We are now forecasting a revenue run rate…of approximately $42 million coming out of 2018 and $10.5 million for Q4 2018.”
Hemp-related products may also include a line of mulch, top soils for organic pest elimination, weed suppression and soil additives.
In 2017, total U.S. land dedicated to hemp production grew 250% to 25,500 acres. There were 1,420 registered growers and 32 universities doing hemp research nationwide.
Currently, GrowGen has 19 stores, including six in Colorado, six in California, three in Michigan, and one each in Las Vegas, Washington, Rhode Island and Oklahoma.
GrowGen operates branded stores in all major cannabis states. It sells thousands of products, including organic nutrients and soils, advanced lighting and hydroponic equipment used indoors and outdoors by commercial and home growers.
Management estimates there are roughly 1,000 hydroponic stores in the U.S. The hydroponic market is estimated to reach over $23 billion by 2020, with a annual growth rate of 32%.
Source grow Gen press release