Aerogrow International, Inc. (OTCMKTS:AERO) recently unveiled that Scotts Miracle-Gro Co (NYSE:SMG) SMG Growing Media, Inc. had exercised all of its outstanding warrants to acquire Aerogrow International common shares, which originates from an agreement sealed in 2013.
Upon the warrant exercise for 21.60 million common shares, AeroGrow International has generated $47.80 million. As a result, the company has a about 33.90 million beneficial shares.
As part of this, the Aerogrow International Board of Directors has declared a $41 million or $1.21 per share distribution to shareholders of record on December 30. This will be distributed on January 3.
About $6.80 million will remain with Aerogrow International for the full repayment of the loan to Scotts Miracle-Gro and for other capital purposes. Generally, the warrant exercise automatically frees the company of its existing debts and at the same time, gives it enough funding to carry out its growth prospects. Aerogrow International is hopeful about the new opportunities this will bring.
“We’ll use that capital to accelerate the development of several exciting new products, further expand existing distribution channels, open significant new markets in North America and in other international markets, and fund increased advertising media to generate product, brand and category awareness,” guaranteed Michael Wolfe, Aerogrow International CEO and President.
Aerogrow International Board of Directors Restructuring
To reflect the new position of SMG Growing Media as a leading shareholder, the Aerogrow International Board of Directors has been restructured effective November 29. The restructuring has led to the resignation of Wolfe and Michael Barish as members of the Aerogrow International Board of Directors. Meanwhile, Wayne Harding and Jack Walker has remained as independent directors. Chris Hagedorn, Scotts Miracle-Gro The Hawthorne Gardening Co. General Manager, has replaced Walker as the Aerogrow International Chairman.
Moreover, Albert Messina, The Hawthorne Gardening Finance and Strategy Lead, and Peter Supron, Scotts Miracle-Gro Chief Operating Officer (COO), have been appointed as new members of the Aerogrow International Board of Directors.
On Friday, Aerogrow International has declined 6.93%, closing at $3.49; and Scotts Miracle-Gro has gained 4.33%, closing at $96.86.