Hydrofarm Eliminates $109 Million in Debt, Becoming Debt-Free
Key Highlights
- ➤Hydrofarm eliminated its $109 million Term Loan and approximately $12 million annual debt service
- ➤$8.3 million raised through registered direct offering and concurrent private placement
- ➤Former lenders received $27.5 million preferred stock and warrants for 27.5 million shares
- ➤Approximately 41.8 million common shares outstanding after preferred conversion
- ➤Hydrofarm believes pro forma equity exceeds Nasdaq’s $2.5 million minimum requirement
Expert Statements
Bill Toler, Chairman and Chief Executive Officer of Hydrofarm
“This is a monumental time for Hydrofarm. With no debt on our balance sheet, we enter our 50th year in 2027 independent and built to scale. We are also excited about the opportunity to sell our cultivation products directly to commercial cannabis growers, removing a long-standing market access barrier and creating a more robust channel for our products.”
Eric Ceresnie, Senior Vice President of Corporate Development and International Markets at Hydrofarm
“The recapitalization reflects the commitment of our organization, former lenders, and investors to build a stronger financial foundation to scale the Hydrofarm platform.”
Eric Ceresnie, Senior Vice President of Corporate Development and International Markets at Hydrofarm
“We are a lean and focused organization with a capital structure to support growth. We are excited about expanding the direct commercial sales channel, scaling our logistics services platform, and pursuing additional growth opportunities. I’m proud of the resilience of our organization, investors, customers, and vendor partners have shown to get us here. Now we can execute and build.”
SHOEMAKERSVILLE, Pa., Nov. 03, 2026 (GLOBE NEWSWIRE) -- Hydrofarm Holdings Group, Inc. (“Hydrofarm” or the “Company”) (Nasdaq: HYFM), a leading independent manufacturer and distributor of branded supplies and equipment for controlled environment agriculture (“CEA”), today provides additional detail on its debt elimination((i)).
Prior to these actions, the Company had a $109 million Term Loan, with approximately $12 million of annual debt service. In the recapitalization, the Term Loan was eliminated, and the former Term Loan Lenders received $27.5 million of a newly created class of Series 1 Non-Voting Convertible Preferred Stock, convertible to common stock at $1.00 per share, and warrants to purchase 27.5 million shares of common stock at an exercise price of $0.78 per share. In addition, Hydrofarm sold common stock and warrants to investors in a registered direct offering and concurrent private placement (the “Offering”), raising approximately $8.3 million in gross proceeds. Officers and directors of the Company participated in the Offering on the same terms as other investors. Following the Offering and conversion of the Preferred Stock, the Company will have approximately 41.8 million common shares outstanding.
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