Navigating Cannabis: ScottsMiracle-Gro forays into the new industry with The Hawthorne Collective
ScottsMiracle-Gro have taken it upon themselves to invest in the cannabis industry in a unique way, with the launch of their new subsidiary, The Hawthorne Collective. This new arm will specialize in strategic investments in areas that are outside of the scope of The Hawthorne Gardening Company, which focuses on hydroponic, lighting and nutrient supplies. A $150 million loan has been provided to Toronto-based RIV Capital to assist in providing legal services and further investments and acquisitions.
Jim Hagedorn, Chairman and CEO of ScottsMiracle-Gro, believes that by making this investment now, even though the legal environment is still up in the air, will eventually drive meaningful value for their shareholders. He also feels that their knowledge of the cannabis space from their ongoing involvement with the gardening company will benefit the Collective.
The founding of The Hawthorne Collective ties in with the history of ScottsMiracle-Gro, which began selling lawn seed in 1868 and developed Miracle-Gro in 1951. They have dealt with their fair share of criticism for their connection with Monsanto, however, the company has made strides in addressing these concerns. Today, ScottsMiracle-Gro boasts approximately $4.1 billion in sales and remains one of the largest marketers of lawn and garden care products.
As regulations are beginning to change with regards to the cannabis industry, ScottsMiracle-Gro has opened up an investment opportunity that could be of great benefit to its shareholders.