GrowGeneration (OTCQX:GRWG) is a cannabis company that is generating substantial growth over the last couple of quarters. It owns and operates specialty retail hydroponic and organic gardening stores. The company’s strategy of investing in key U.S. cannabis markets is working. Its revenue rose 70% year-over-year in the first quarter.

The revenue growth was supported by same-store sales growth and the addition of four new retail stores. The four new stores added revenue of about $563,000 in the first quarter. California and Nevada were the two key growth markets for the company during the first quarter.

Darren Lampert, Co-Founder, and CEO said, “This was another great quarter of sales for GrowGeneration, clearly demonstrating the demand for our products and the scalability of our business as we continue our expansion plans.”

GrowGeneration stock trades at around $5 at present. The stock has the 52-week trading range of $1.50 – $20.00 with the market capitalization of $96 million.

GrowGeneration: Management Expects Substantial Revenue Growth

The company expects its revenue to stands around $37 million this year compared to $14 million in the past year. It is planning to invest $25 million in organic and non-organic growth opportunities to achieve its revenue guidance.

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GrowGen management looks bullish on their future fundamentals. “We have a robust pipeline of acquisitions, which we plan to close in the first half of the year. With revenue guidance set at $37M, we anticipate continued growth into 2018 and 2019,” the CEO added.

Its business growth strategies and robust financial numbers are allowing it to raise significant capital to support its investments. The company raised $10.2 million in debt and equity financing in the latest quarter. Its liquidity position is stable. At the end of the latest quarter, it has $14.3 million in working capital and $8.8 million in cash.

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