The announcement comes just days after the company showcased the lineup at their 5,000 square foot display during the annual Maximum Yield show in San Francisco this past weekend.
“We were overwhelmed by the interest in our products and our price points. We have changed the way business is done. By manufacturing and selling directly to retailers, they avoid the hefty markups from distributors, affording them lower prices and higher margins,” said Derek Peterson, founder of GrowOp Tech.
GrowOp Tech doesn’t actually sell medical marijuana, just the equipment that can be used in its cultivation. GrowOp’s product lineup is also highly effective for traditional agriculture.
Headed by ex-Wall Street executive Derek Peterson, GrowOp recently closed a $500,000 round of financing bringing their total capital raised to over $1,000,000.
“National acceptance for medical cannabis programs has created significant opportunities for companies that offer ancillary products and services,” said Peterson. “We have grown faster than we have anticipated and as other states relax their laws we anticipate the best to be ahead of us.”
GrowOp Tech has opened accounts with close to 50 retailers nationwide in the past 30 days, and received close to 200 inquiries since their show this last weekend. It has been reported that the 3 main distribution companies gross north of $500 million in annual sales. GrowOp Tech has identified close to 1,500 hydroponics stores in the US and is actively pursuing relationships with them.
“In California competition is intense and margins are getting squeezed. Carrying GrowOp’s products has given us the ability to under price competition while still keeping 40% margins,” said John Gavin, owner of Global Gardens Hydroponics in Burlingame, CA.
The company is working towards a public offering later this year and has had significant interest from both private equity and institutional investors.
“Investors want access to this space and there are limited opportunities, especially in a public vehicle. GrowOp provides an access point as a traditional business serving a not so traditional industry,” said Peterson.
GrowOp Tech not only offers the lowest priced hydroponic equipment on the market but also some of the most innovative. The company manufactures products such as nutrients specially formulated for growing cannabis and electronic digital controllers, essentially the high tech brains of indoor cultivation facilities. The company is rapidly expanding its product lineup offered through its website http://www.growopltd.com.
For more information, please visit http://www.growopltd.com
GrowOp Technology is the first honest hydroponics manufacturer, distributing products that line the shelves of retailers across the US, Canada and Europe. GrowOp was the original manufacturer of the large scale mobile hydroponic grow rooms, the “Big Bud” and “little Bud” and has expanded its product lineup to serve the needs of the expanding retail customer base. For more information, please visit http://www.growopltd.com