Scotts Miracle-Gro Invests $150M in Cannabis - Riv Capital
Scotts Miracle-Gro Expands into Cannabis Investment
Scotts Miracle-Gro, a well-established name in horticulture, is now strategically focusing on the cannabis sector to bolster its financial performance. The company has recently established a dedicated investment arm geared towards cannabis-related businesses.
Introducing The Hawthorne Collective
This new entity, named The Hawthorne Collective, will concentrate on making minority investments in cannabis companies that fall outside the current scope of Scotts Miracle-Gro’s existing cannabis subsidiary, The Hawthorne Gardening Company. The Hawthorne Gardening Company already manages a substantial portfolio of gardening brands specifically tailored for the cannabis industry.
Initial Investment in RIV Capital
The Hawthorne Collective has initiated its investment strategy with a $150 million convertible loan to RIV Capital, a Toronto-based firm specializing in cannabis investment and acquisitions. This loan carries an interest rate of 2.03%.
Upon completion of the loan agreement, RIV Capital is designated as The Collective’s primary channel for subsequent investments.
Expanding Scotts Miracle-Gro’s Cannabis Footprint
This new investment vehicle represents a further expansion of Scotts Miracle-Gro’s presence within the burgeoning cannabis market. The Hawthorne Gardening Company already possesses a leading position with several prominent cannabis gardening brands.
Strategic Rationale and Future Outlook
“The substantial growth experienced by The Hawthorne Gardening Company over the last six years has demonstrably increased value for our shareholders,” stated Jim Hagedorn, Chairman and CEO of Scotts Miracle-Gro. “This growth has also enabled us to cultivate a unique level of knowledge and understanding of the cannabis industry, all while remaining separate from direct involvement in cannabis cultivation.”
Hagedorn continued, “Consequently, we are initiating investments in other segments of the industry through The Collective, while simultaneously continuing to explore strategic acquisitions that can be integrated into the existing Hawthorne Gardening Company structure.”
Key Takeaway: Scotts Miracle-Gro is diversifying its cannabis strategy through a new investment entity, complementing its existing gardening supply business.
