InterCure Subsidiary Canndoc Signs Strategic Distribution Agreement with S.L.E. of Teva Pharmaceuticals

NEWPORT BEACH, Calif., Sept. 18, 2019 (GLOBE NEWSWIRE) — PRESS RELEASE — Hydroponics, Inc., a national provider of agricultural supplies and logistics specific to the cannabis and hemp industries, has announced that it will deploy up to $75 million to acquire tangentially-related service businesses over the next 24 months through a special acquisition fund.

Hydroponics, Inc. is a 10-year old company with a rich history in the California cannabis industry. Acquired through a sidecar investment firm funded by notable CEOs, entrepreneurs and family offices, the investment and operating team identified the opportunity to disrupt and professionalize the supply chain utilizing Hydroponics, Inc. as its platform. Since the acquisition, the company has expanded its geographic footprint into 15 states, Washington, D.C., and Puerto Rico, augmented the management team with procurement and data experts, and developed best-in-class agricultural solutions and analytics for large-scale cultivators.

“The thesis behind Hydroponics was to create a highly professional, reliable resource for supplies, data and analytics, and financial services for the commercial cultivator,” commented Ken Alston, CEO of Hydroponics, Inc. “The rapid penetration and adoption of our offerings by the commercial cannabis industry has been nothing short of spectacular. As such, we have tapped into our initial capital partners to target and acquire companies fitting into our platform. As valuation expectations begin to normalize, we think the time is right to invest more deeply in the sector.”

Cowen predicts cannabis sales will reach $80 billion by 2030 creating large opportunities for diligent investors. Regardless, the pressure to generate earnings and profitability is mounting and there is too much capital at risk not to professionalize the supply chain.

With enviable management, a base of loyal customers and a robust sales pipeline, the company is now poised to invest up to $75 million to acquire complementary service companies within the North American cannabis industry.

“Our goal is to construct a portfolio of established companies characterized by profitable operating histories, high-margins, and low customer concentration – all against our backdrop of a data-driven platform,” said Alston.

“Hydroponics is product agnostic and works on a national scale,” said Justin Pierce, a principal with Hydroponics, Inc. “We are a profit center. By outsourcing to us for procurement, cultivators can open up vital square footage at their facilities while eliminating in-house personnel dedicated to procurement and logistics.”