Scotts Miracle-Gro announces cannabis investment entity, and a $150M investment in RIV Capital

Scotts Miracle-Gro knows how to make plants grow, and now the company is looking to cannabis companies to grow its balance sheet. The company today announced an investment entity specifically for cannabis.

Called The Hawthorne Collective, the entity is said to be pursuing minority investments in companies not currently being pursued by Scotts Miracle-Gro’s cannabis subsidiary, The Hawthorne Gardening Company, which owns and operates dozens of cannabis-focused gardening brands.

The Hawthorne Collective’s first investment comes in a $150 million convertible loan to Toronto-based RIV Capital, a cannabis investment and acquisition firm. According to the company’s press release, the note accrues interest at 2.03%, and upon close, RIV Capital will become The Collective’s preferred vehicle for future investments.

The addition of this investment vehicle gives Scotts Miracle-Gro a new entry into the expanding world of cannabis. Its operating subsidiary, The Hawthorne Gardening Company, already houses some of cannabis’ most potent gardening brands.

“Indeed, the growth of The Hawthorne Gardening Company over the past six years has generated significant shareholder value,” said Jim Hagedorn, Scotts Miracle-Gro chairman and CEO, in a released statement. “It also has allowed us to develop a rare level of expertise and insight regarding the cannabis space without being involved in the plant-touching aspects of the industry. That is why we are beginning to invest in other areas of the industry through The Collective while continuing to pursue near-in strategic acquisitions to fold into the existing Hawthorne Gardening business.”