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Sponsored cannabis industry news from MJbizdaily.com
The Scotts Miracle-Gro Co. transferred its cannabis-investment unit, The Hawthorne Collective, to an “independent strategic partner.”
Scotts transferred The Hawthorne Collective in exchange for an interest-bearing promissory note, according to a Thursday news release.
The parent company has the option to reacquire The Hawthorne Collective if marijuana is legalized or other measures that positively impact the industry are approved at the federal level.
Ohio-based Scotts did not identify the partner, and a company spokesperson did not immediately respond to an MJBizDaily query seeking the identity.
According to the release, Scotts launched The Hawthorne Collective in 2021 to “invest in areas of the cannabis industry that are not pursed by” the Hawthorne Gardening Co., which provides cultivation supplies for cannabis growers and hydroponic cultivators.
The cannabis companies in which The Hawthorne Collective has invested include Fluent, a vertically integrated cannabis company with licenses and operations in Florida, New York, Pennsylvania and Texas.
The Hawthorne Collective move comes after Scotts in January revealed plans to spin off the Hawthorne Gardening Co. into a stand-alone operation.
That separation will be completed by the end of the year, the Thursday release noted.
Jim Hagedorn, chair and CEO of Scotts Miracle-Gro, said in a statement that separating the Hawthorne entities will benefit shareholders by reducing “the impact of the cannabis sector’s volatility on our company’s stock and provide opportunities to drive meaningful and immediate value creation through increased investments in our consumer business.”
The Hawthorne companies planned to capitalize on cannabis sector in state-regulated markets, but inaction on marijuana-related issues at the federal level, including rescheduling and passage of the SAFER Banking Act, has prevented it.
“Until they become a reality, we believe the Hawthorne companies can be a greater asset within an independent cannabis-dedicated entity, specifically one in which our cultivation supply business can partner with a multistate operator or leading cannabis brands,” Hagedorn said.
Scotts trades on the New York Stock Exchange as SMG.
Sponsored cannabis industry news from MJbizdaily.com
Scotts Miracle-Gro transfers cannabis-investment unit to ‘strategic partner’
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