Aerogrow takes out $7.5M loan from Scotts Miracle-Gro

BOULDER — Fresh off its best sales quarter in company history, AeroGrow International Inc. (OTCQB: AERO) is taking a $7.5 million loan from its majority investor Scotts Miracle-Gro Co. (NYSE: SMG). In filings to the U.S. Securities and Exchange Commission Monday, the Boulder-based AeroGrow said the loans are meant for working capital, and will be disbursed in increments of $500,000 each at a rate of 10% interest. The debt is due to be repaid to Scotts by June 30, 2021. “The funding will provide general working capital to support anticipated growth as the Company expands its retail and its direct-to-consumer sales channels,” the filing reads. Scotts has been AeroGrow’s majority owner for years. It took an 80% stake in the producer of small-scale hydroponic kits in 2016. In its latest earnings call late last month, AeroGrow reported a record $11.8 million in sales for the quarter, good for a 29% increase over the same period in 2019. That sales jump was attributed to the COVID-19 pandemic leading people to want to grow fresh food at home. AeroGrow also disclosed last month that it retained investment bank Stifel Financial Corp. (NYSE: SF) as an adviser for a “broad review of strategic alternatives,” a sign that the company may be looking to sell itself or acquire a competitor at some point in the near future.   © 2020 BizWest Media LLC
Source: BizWest