GROWGENERATION CORP (OTCMKTS:GRWG) Files An 8-K Entry into a Material Definitive Agreement
Item 1.01. Entry Into a Material Definitive Agreement
On February 1, 2017, through its wholly-owned subsidiary,
GrowGeneration California Corp. (GrowGeneration California),
GrowGeneration Corp. (the Company) entered into an asset purchase
agreement (Asset Purchase Agreement) with an individual (the
Seller) to purchase certain assets from the Seller in connection
with a retail hydroponic and garden supply business (the
Business) located in Santa Rosa, CA.
The assets subject to the sale under the Asset Purchase Agreement
included inventories, fixed assets, tangible personal property,
intangible personal property, receivables and a custom list. In
addition to the cash consideration for the purchase of such
assets, GrowGeneration California also agreed to make certain
cash payments and 25,000 shares of common stock of the Company to
the Seller contingent on the achievement of revenue goals by the
Business in 2017, 2018 and 2019.
The closing of the asset purchase took place on February 8, 2017.
In connection with the purchase of the assets, GrowGeneration
California also entered into a commercial lease, to be effective
from March 1, 2017 to February 28, 2022, to rent the premises
where the Business is located.
Copies of the Asset Purchase Agreement and the lease are filed
herewith as Exhibit 99.1 and 99.2, respectively.
Section 2 Financial Information
Item 2.01. Completion of Acquisition or Disposition of
Assets
Disclosures under Item 1.01 above are incorporated hereunder in
their entirety.
Section 9 Financial Statements and Exhibits
Item 9.01. Financial Statements and Exhibits
| Exhibit No. | Description | ||
| 99.1 |
Asset Purchase Agreement, dated February 1, 2017, by and between GrowGeneration California Corp. and Morgan Pagenkopf |
||
| 99.2 |
Commercial Lease, dated February 1, 2017, by and between GrowGeneration California Corp. and Andrew Brown |
||
About GROWGENERATION CORP (OTCMKTS:GRWG)
GrowGeneration, Corp. operates retail hydroponic and organic specialty gardening retail outlets. The Company owned and operated a chain of approximately eight retail hydroponic/gardening stores located in the states of Colorado and California at November 9, 2015. The Company is also engaged in the development of a branded e-commerce portal at www.GrowGeneration.com. The Company’s stores offer supplies to the hydroponic and gardening industry, including medium (farming soil), hydroponic equipment, lighting, plant nutrients and various additional products used by professional growers and specialty cultivation operations. The Company’s target market segments include home growers of organic vegetable and fruit growers (small farms, home garden growers, restaurants growers and farmer markets), the do-it yourselfers (home flower and plant growers, or mass market and growers in the cannabis related market (dispensaries, cultivators and caregivers). GROWGENERATION CORP (OTCMKTS:GRWG) Recent Trading Information
GROWGENERATION CORP (OTCMKTS:GRWG) closed its last trading session down -0.13 at 2.15 with shares trading hands.
