ScottsMiracle-Gro can’t get enough of the cannabis industry, investing $ 150 million in new cannabis businesses

ScottsMiracle-Gro is immersed in the world of cannabis!

Last week, the group announced their cannabis investment company and a $ 150 million investment in RIV Capital.

RIV Capital is listed on the Toronto Stock Exchange.

Does this mean the company is now interested in growing its balance sheet like weed? …

The company announced in its announcement that the investment company was purposely bought for cannabis.

The Scotts Miracle-Gro Company

This company is well known in the consumer lawn and garden products industry. The company manufactures and sells fertilizers, plant foods, grass seeds, pesticides, garden soils and other useful garden products in countries across Europe and North America.

It also offers a wide range of products for both novice and professional gardeners.

The company is known for its turf services in the United States of America.

The most standout and lovable feature of the Scotts Miracle-Gro franchise is that the professionals at this company know how to grow plants and they do it with ease.

Hawthorne Collective: Newest subsidiary of Scotts Miracle-Gro

The investment company is called “The Hawthorne Collective”. The company is used to pursue minority interests in companies not sought by Scotts Miracle-Gros horticultural company – known as The Hawthorne Gardening Company.

This garden subsidiary owns and operates many cannabis-focused garden brands. It also produces and supplies hydroponics and other materials needed for growing cannabis.

With the Hawthorne Collective, Scott’s Miracle-Gro has positioned itself as a new entrant in the growing world of the marijuana industry. It also works hard to ensure that the Hawthorne Gardening Company is home to the major gardening brands.

I have to point out that the group is currently home to most of the dominant garden brands in Toronto. When you talk about working hard, smart, and fast; Scotts Miracle-Gro seems to do it all.

With funds already invested in the industry, the company has no choice but to thrive.

Immerse yourself in the cannabis industry with Riv Capital

The group’s first investment came in the form of a $ 150 million convertible loan to RIV Capital, a cannabis investment and acquisition firm based in Toronto, Canada.

RIV Capital was previously one of the subsidiaries of cannabis-dominated Canopy Growth.

The statement released by the company to the press states that it has an accruing interest rate of 2.03%. It also states that upon the Hawthorne Collective Group’s final closing, RIV capital will emerge as the Hawthorne Collective Group’s preferred vehicle for all future investments.

The massive $ 150 million invested in RIV Capital has increased available capital at current exchange rates to $ 319 million.

According to RIV Capitals President and CEO Narbé Alexandrian, the investment has opened up countless valuable opportunities for the company. These opportunities are used to further increase the company’s growth and added value.

The board of directors of RIV is subsequently increased to seven. This is to make room for the three new members nominated by the Hawthorne Collective. You have the right to do so.

The contract signed by both parties states that Hawthorne Collective will not play an active day-to-day role at RIV. It is said that this article will be listed in the contracts that the collective will enter into with any other companies in which it will invest in the future.

Why invest in RIV?

US federal law classifies cannabis as a Category 1 drug and is therefore prohibited.

Scotts Miracle-Gro cannot be involved in cannabis-related products due to its connections with the New York Stock Exchange.

This could ruin their previous agricultural products and equipment business.

That’s why they chose RIV Capital to do what the Scotts can’t do on their own.

RIV funds are used to secure ties with cannabis-related companies in the United States. Alexandrian said the $ 150 million investment can be used as collateral to secure additional funds.

Words from the chairman

Scotts Miracle-Gro franchise chairman and CEO Jim Hagedorn said the growth of the Hawthorne Gardening Company over the past six years has helped the company increase its shareholder value. More shareholder value was generated through the profitable efforts of the garden subsidiary.

He also said in a published statement, “It has also enabled us to develop a rare level of expertise and insight into the cannabis field without being involved in the herbivorous aspects of the industry.”

Given the substantial profit, the company’s board of directors believes it is time to invest in other profitable areas of the cannabis industry.

The Hawthorne Collective is used as a strategy to attract powerful cannabis companies / brands that will then be merged with the Hawthorne Gardening Business.

The loan given to the company RIV Capital is a six-year bond containing investment rights. The 2.03% interest is due for the first two years of this agreement.

In the event of the Notes converting, Scotts Miracle-Gro will be entitled to 42% of RIV Capital, although it will be owned by the Hawthorne Collective Groups.

Chairman Jim also added that Hawthorne Collective was formed to allow the company to research / properly examine the opportunities in the burgeoning marijuana industry. The marijuana market is booming in sales and the number of customers is increasing daily. In the months ahead, the marijuana industry will be better positioned for more significant growth.

Bottom line

With the reputation, track record, experience and brand awareness of Scotts Miracle-Gro, it wouldn’t be long before the group uses RIV’s insights to improve its acquisition and investment strategies in the countries in which it operates .

As Chairman and CEO Jim Hagedorn pointed out, Hawthorne collective will allow Scotts Miracle-Gro to get involved in the cannabis industry, and once the legal stance in the United States changes nationwide, the group will ultimately be able to move into the American cannabis industry.

Everything points to the endgame; a deeper dive into the US cannabis scene.

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