Grove Collaborative receives letter from HumanCo Investment

HumanCo Investments, affiliated with investors that own more than 5% of Grove Collaborative Holdings, Inc. (GROV) and are among the Company’s largest shareholders, sent a public letter to Grove’s Board of Directors. The letter “called on the Board to conduct a comprehensive review of strategic alternatives, including a sale to a larger strategic company or financial sponsor, or a transformative merger with a profitable company. HumanCo Investments is a leading investment management firm focused on the health and wellness category. The letter notes that HCI, a recognized thought leader in the health and wellness investment space, is an avid supporter of Grove’s mission to be the premier, online non-toxic marketplace for household, personal care and wellness products. HumanCo Investments believes Grove, which is at the center of the clean-living secular trend, has developed a significant competitive moat over the past 10+ years, one that cannot be replicated quickly or without a significant amount of capital. Furthermore, Grove is in good financial health, having reached profitability and operating cash flow generation over the past year, as well as having minimal debt with no near-term solvency issues. However, the Company has become deeply undervalued in the public market due to a lack of investor relevance as a result of its small market capitalization and limited float. This irrelevance has only been amplified by Grove’s inability to pursue a strategy that balances both growth and profitability due to its significant operational and public cost burden that cannot be materially reduced as a standalone public company. HumanCo Investments believes that Grove will be able to reach its full potential by partnering with another company that has the necessary capital and operational infrastructure in order for the Company to properly invest in a long-term, growth-oriented strategy.”