GrowGeneration Corp (OTCMKTS:GRWG) has taken over the assets of England based GreenLife Garden Supply. The recent takeover adds revenues of $7 million to the company. Following the takeover, GrowGen is well positioned to service customers in New Jersey and New York. The company is expected to benefit a lot as these states are actively considering the legalization of adult use marijuana.
GreenLife is one of the highest and biggest volume of hydroponic chains in England. Sean Reardon, the founder of GreenLife, will continue in the role of the executive (sales and business development) for GrowGen.
The takeover allows GrowGen gets access to 5 warehouse and retail locations and service more commercial cultivators in New England. It already serves home and commercial growers from the existing 21 locations.
The market for marijuana in Maine is expected to reach $325 million by next year. Maine is on track to open the market for adult use marijuana by the end of 2019. The state is framing rules for adult use marijuana.
Massachusetts has a hundred recreational business licenses. The sales of recreational marijuana are estimated at $100 million.
The annual revenues of recreational marijuana are expected to reach $300 million. Nearly 1.3 million people in New York could get access to the legal market, and the state could generate tax revenues of up to $677.7 million.
The annual sales of recreational marijuana in New Jersey are expected to reach up to $1.5 billion by the year 2023, according to Marijuana Business Daily. The state has 9 million people and expects 100 million visitors every year and creates a robust market for legal marijuana.
GrowGen, which is one of the fastest and largest growing chains of hydroponic garden centers, has achieved consistent growth through the aggressive inauguration of new locations and acquisitions.
The company also operates the business through 5 wholly owned subsidiaries. GrowGeneration Canada Corp., the first subsidiary of GrowGen, expands business operations in Canada.
GrowGeneration Management Corp is its second subsidiary and has a team of ten commercial experts.
GrowGen has improved the performance in Q1 2019. It has recorded 200% increase year on year and a 50% increase when compared to the previous quarter. Heavy Gardens, the newly purchased e-commerce store, has contributed to the revenues of $700,000.