GrowGeneration Corp. (OTC: GRWG) announced on May 9th that the company received $10 million dollars in investments from three separate strategic investors.
Out of the three investors the smallest strategic investments are a $1.5 million investment from Merida Capital Partners and a $1.0 million investment from Navy Capital. The remaining investment portion of $7.5 million came from Gotham Green Partners (GGP).
GGP is a private equity firm that is located in New York. The private firm primarily focuses on investments in the expanding legal cannabis industry.
GrowGeneration now reports that it has over $17 million in cash on their balance sheet. The company will use this large cash balance to perform several acquisitions in the coming months.
The company plans to close these acquisitions before the 4th quarter and intends to complete them during the 2nd and 3rd quarters. These acquisitions will keep GrowGeneration as the largest retailer that focuses primarily on hydroponic and organic products for their storefronts.
GRWG stock increased 1.78% in value after this news was initially announced on the 9th of May. However, as soon as trading began on May 10th, the stock value plummeted 7.38% and ended the day at a 6.38% decrease.
On May 11th the stock decreased an additional 2.02% and ended the last 5 days of trading at a 1.02% decrease in value.