Manufacturing February 17, 2021 9:12:59 pm

AeroGrow continues positive momentum

By Lucas High

BOULDER — AeroGrow International Inc. (OTCQB:AERO), a Boulder-based manufacturer and distributor of indoor-gardening systems, continues its streak of strong revenue growth as the COVID-19 pandemic boosts the trend of growing vegetables and herbs at home.

The company saw revenues increase 107% year over year to $38.4 million in the third quarter of AeroGrow’s fiscal year, according to its earnings report filed with the U.S. Securities and Exchange Commission this week.

Income from operations grew to $4.7 million in the most recent period, a whopping 290% higher than Q3 last year.

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Over the past nine months, AeroGrow posted sales of $69.1 million and income from operations of $8.7 million, up from a loss of nearly $1 million during the same period last year.

AeroGrow’s strong performance comes as Scotts Miracle-Gro Co. (NYSE: SMG) attempts to acquire the entirety of the firm.

Scotts, which already owns about 80.5% of AeroGrow’s outstanding shares of common stock, has offered $3 per share for the remaining shares. If the deal is approved by shareholders, AeroGrow will become a wholly owned subsidiary of Scotts.

The acquisition has come under scrutiny by some shareholders who believe Scotts is trying to lowball them.

A pair of lawsuits filed last month in Nevada are attempting to block the deal, according to AeroGrow’s disclosure.

“Additional lawsuits may be filed against us, our board of directors or other parties to the merger agreement, challenging our acquisition by [Scotts] or making other claims in connection therewith. Such lawsuits may be brought by our purported stockholders and may seek, among other things, to enjoin consummation of the merger,” the quarterly report said. “… As such, if the plaintiffs in any such potential lawsuits are successful in obtaining an injunction prohibiting us from completing the merger on the agreed upon terms, then such injunction may prevent the merger from becoming effective, or from becoming effective within the expected timeframe.”