Scotts Miracle-Gro transfers Hawthorne Collective subsidiary

Scotts Miracle-Gro (SMG) announced the transfer of its wholly-owned subsidiary, The Hawthorne Collective, to an independent strategic partner. The company created The Hawthorne Collective in 2021 as a vehicle to invest in areas of the cannabis industry that are not pursued by its Hawthorne Gardening subsidiary. Included within The Hawthorne Collective’s holdings are investments in Fluent, previously Cansortium, a vertically integrated cannabis company with licenses and operations in Florida, Pennsylvania, Texas and New York. Under terms of the deal, ScottsMiracle-Gro transferred The Hawthorne Collective to the strategic partner in exchange for an interest-bearing promissory note. The Company retains an option to reacquire The Hawthorne Collective or its assets should cannabis legalization and other measures to positively impact the industry be approved at the federal level.