GrowGeneration shares up 2.9% premarket after it backs 2021 revenue guidance

GrowGeneration Corp.’s shares rose 2.9% premarket Tuesday, after the company reiterated guidance for 2021 of revenue of $415 to $430 million. The Denver, Colo.-based company made the move as it announced the acquisition of Downriver Hydroponics, a Michigan-based indoor garden supply center in Wayne County. Downriver Hydro was founded in 2011 and is the area’s biggest hydroponics store, with annual revenues of almost $10 million. GrowGeneration said its portfolio of hydroponic garden centers now includes 53 stores across 12 states, with seven locations in Michigan. “Michigan’s cannabis market is expected to generate $3 billion in revenue over the next three years, making it an ideal place for further investment and expansion,” said Darren Lampert, GrowGen’s CEO, in a statement. The company is expecting to have 60 garden center locations in 15 states by the end of 2021. Shares have gained 13% in the year to date, while the Cannabis ETF has gained 41% and the S&P 500 has gained 10.8%.

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