Isophoric News · Tuesday, October 27, 2026
Hydrofarm says it will satisfy its $109 million term loan with preferred stock and warrants, and prices an $8.3 million stock offering
Hydrofarm Holdings Group said Oct. 27 that it entered agreements with holders of its senior secured term loan and the loan agent to issue 27.5 million shares of Series 1 Non-Voting Convertible Preferred Stock and warrants for 27.5 million common shares at $0.78 each "to satisfy the Company's Term Loan in full," according to the company's press release filed as Exhibit 99.1 to its Form 8-K. Each preferred share converts into one common share, and the conversion and the exercise of the warrants are subject to shareholder approval, the filing said. The company also priced a registered direct offering of 1,599,400 common shares at $0.905 and a concurrent private placement of 7,611,575 shares (or pre-funded warrants) and 9,210,975 common warrants at $0.9050, with expected gross proceeds of about $8.3 million before placement fees and expenses. The release said each common warrant has a $0.78 exercise price and expires five and a half years after issuance, that Chairman and CEO Bill Toler and other officers and directors or their affiliates will take part on the same terms, and that closing was expected on or about Oct. 27. ThinkEquity is the placement agent. The company said it intends to use the net proceeds for general corporate purposes. The filing lists, among its risk factors, that the conditions to the term loan termination may not be met on time.