GRWG - Why GrowGeneration Stock Got Smoked Today
Hydroponics and indoor plant-growth products retailer GrowGeneration (NASDAQ: GRWG) announced the termination of an acquisition agreement today along with updated guidance as a result. When investors did the math, its stock took a hit. As of 1:30 p.m. EDT on Wednesday, GrowGeneration shares were down about 11.4%, near the lows of the day.
In July 2021, GrowGeneration said it would acquire HGS Hydro, a leading chain of hydroponic garden centers. Today the companies announced the mutual termination of the deal, and GrowGeneration said it would instead enter the New Mexico cannabis market by acquiring All Seasons Gardening, a different indoor-outdoor garden supply company. In the process, GrowGeneration revised its full-year financial guidance, and investors didn't like what they saw.
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Why GrowGeneration Stock Got Smoked Today