Hydrofarm Holdings Group, Inc. (Nasdaq: HYFM) announced on October 27, 2026, that it has entered into definitive agreements to raise approximately $8.3 million through a registered direct offering and a concurrent private placement. The company also disclosed that it is terminating its $109 million senior secured term loan in connection with these transactions.
Under the terms of the registered direct offering, the company agreed to sell 1,599,400 shares of common stock at a price of $0.905 per share. In the concurrent private placement, investors agreed to purchase 7,611,575 unregistered shares of common stock (or pre-funded warrants in lieu thereof) and 9,210,975 common stock purchase warrants. Each warrant is exercisable for one share of common stock at a price of $0.78 and will expire five and a half years from the issuance date. ThinkEquity is serving as the sole placement agent.
The company stated that the closing of the offering is expected to occur on or about October 27, 2026, subject to customary closing conditions. The net proceeds from the offering are intended for general corporate purposes. Additionally, the company will issue 27.5 million shares of Series 1 Non-Voting Convertible Preferred Stock and common stock purchase warrants to the holders of the $109 million term loan to satisfy the debt in full. The conversion of the preferred stock and the exercise of the warrants are subject to shareholder approval.
