Filing of The Day: Why Smg Growing Media, Inc Reported Big Aerogrow International, Inc Position?

Filing of The Day: Why Smg Growing Media, Inc Reported Big Aerogrow International, Inc Position?

The New Smg Growing Media, Inc Holding in Aerogrow International, Inc

Smg Growing Media, Inc filed with the SEC SC 13D/A form for Aerogrow International, Inc. The form can be accessed here: 000144398416000066. As reported in Smg Growing Media, Inc’s form, the filler as of late owns 81.2% or 26,663,295 shares of the -company.

Aerogrow International, Inc stake is a new one for the and it was filed because of activity on November 29, 2016. We feel this shows Smg Growing Media, Inc’s positive view for the stock.

Reasons Why Smg Growing Media, Inc Bought – Aerogrow International, Inc Stock

Purpose of Transaction

On November 16, 2016, representatives of the Reporting Persons (the “Scotts Representatives”) met with the board of directors (the “Board”) and several members of management of the Issuer. During this meeting, the Scotts Representatives reiterated the Reporting Persons’ intention to exercise some or all of the Warrant prior to December 31, 2016 and discussed various strategic transactions that the Reporting Persons may pursue following such exercise which, if effected, could result in, among other things, any of the matters identified in Items 4(a)-(j) of Schedule 13D. In particular, each Reporting Person may at any time and from time to time: (i) in the open market, in privately negotiated transactions or otherwise, acquire additional shares of Common Stock or other securities of the Issuer, including acquisitions from affiliates of the Reporting Persons; (ii) pledge, encumber, provide a security interest with respect to, dispose of or transfer (including pursuant to the exercise of a pledge, encumbrance or other security interest and pursuant to the registration rights described in Item 6 herein) all or a portion of the securities of the Issuer, including shares of Common Stock, that the Reporting Persons now own or may hereafter acquire to any person or entity, including transfers or dispositions to affiliates of the Reporting Persons; (iii) enter into derivative and other transactions with institutional counterparties with respect to the Issuer’s securities, including shares of Common Stock; (iv) cause or seek to cause the Issuer or any of its subsidiaries to purchase or otherwise acquire all or a portion of another person’s assets or business, including acquisitions from affiliates of the Reporting Persons; (v) cause or seek to cause the Issuer or any of its subsidiaries to enter into one or more acquisitions, business combinations, mergers or agreements to sell, transfer or otherwise dispose of all or any portion of its assets or business to any person or entity, including sales, transfers and other

CUSIP No. 00768M202

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dispositions to affiliates of the Reporting Persons; (vi) raise capital, or restructure the Issuer’s or any of its subsidiaries’ capitalization, indebtedness or holding company arrangements; (vii) make personnel changes to the present management of the Issuer deemed necessary or desirable; (viii) change the identity of the directors or officers of the Issuer; (ix) make any other material change in the Issuer’s or any of its subsidiaries’ corporate structure, governance, or business; or (x) engage in communications with one or more stockholders, officers or directors of the Issuer and other persons regarding any of the matters described in clauses (i) through (ix) above.

On November 29, 2016, SMG fully exercised the Warrant resulting in the issuance of 21,613,342 shares of Common Stock to SMG. As a result of the full exercise of the Warrant, and pursuant to the terms of the Certificate of Designations of the Series B Preferred Stock (the “Certificate of Designations”), the Series B Preferred Stock owned by SMG automatically converted into 2,649,007 shares of Common Stock. SMG exercised the Warrant at this time to enhance its control over the Issuer at a price that it believes represents an attractive investment opportunity.

Following SMG’s exercise of the Warrant, Michael S. Barish and Mike Wolfe resigned from the Board effective on November 29, 2016. On the same day, the remaining members of the Board appointed Peter D. Supron and Albert J. Messina to fill the vacancies created by the resignations. Each of Messrs. Supron and Messina is an employee of a company affiliated with SMG.

Business Profile

AeroGrow International, Inc. is a developer, marketer, direct-seller and wholesaler of indoor garden systems designed for consumer use in the gardening, cooking, healthy eating, and home and office decor markets. The Company offers multiple lines of indoor gardens, grow lights, nutrient formula, over 40 seed pod kits, and various cooking, gardening and decor accessories, in the United States and Canada, as well as selected countries in Europe, Asia and Australia. The Company’s products are indoor gardens and seed pod kits that allow consumers to grow: vegetables, such as tomatoes, chili peppers and salad greens; fresh herbs, including cilantro, chives, basil, dill, oregano and mint, and flowers, such as petunias, snapdragons, geraniums and vinca. Its consumers can also plant and grow their own seeds using the Company’s grow anything kits or use their AeroGardens as seed starters for their outdoor gardens with its seed starting systems. It has developed a range of accessory products.

SEC Form 13D is filed within 10 days, by anyone who acquires beneficial ownership of 5%+ of any public firm. Activist investors and practices such as: company breakups, hostile takeovers, and change of control events, are permitted for this form filers. A filer must promptly update its 13D filing in case of acquisition or disposition of 1% or more of the securities that are the subject of the filing.

Analysts await AeroGrow International, Inc. (OTCMKTS:AERO) to report earnings on February, 9.

The stock closed at $3.87 during the last session. It is down 52.96% since April 27, 2016 and is uptrending. It has outperformed by 47.74% the S&P500.

AeroGrow International, Inc. is a developer, marketer, direct-seller and wholesaler of indoor garden systems designed for consumer use in the gardening, cooking, healthy eating, and home and office decor markets. The company has a market cap of $30.95 million. The Firm offers multiple lines of indoor gardens, grow lights, nutrient formula, over 40 seed pod kits, and various cooking, gardening and decor accessories, in the United States and Canada, as well as selected countries in Europe, Asia and Australia. It currently has negative earnings. The Company’s products are indoor gardens and seed pod kits that allow clients to grow: vegetables, such as tomatoes, chili peppers and salad greens; fresh herbs, including cilantro, chives, basil, dill, oregano and mint, and flowers, such as petunias, snapdragons, geraniums and vinca.

More important recent AeroGrow International, Inc. (OTCMKTS:AERO) news were published by: Seekingalpha.com which released: “Aero Grow: An Attractive Cannabis Play” on November 14, 2016, also Seekingalpha.com published article titled: “Riding High On AeroGrow”, Seekingalpha.com published: “AeroGrow International’s (AERO) CEO Mike Wolfe on Q1 2017 Results – Earnings …” on August 12, 2016. More interesting news about AeroGrow International, Inc. (OTCMKTS:AERO) was released by: Seekingalpha.com and their article: “AeroGrow CEO: We’re Back With A Vengeance” with publication date: December 15, 2013.

According to Zacks Investment Research, “AeroGrow International, Inc. is dedicated to the research, development and marketing of the AeroGarden, the world’s first kitchen garden appliance. The AeroGarden features NASA-proven, dirt-free aeroponic technology, allowing anyone to grow farmer’s market fresh herbs, salad greens, tomatoes, chili peppers, strawberries and more, indoors, year-round, so simply and easily that no green thumb is required.”

AERO Company Profile

AeroGrow International, Inc., incorporated on March 25, 2002, is a developer, marketer, direct-seller and wholesaler of indoor garden systems designed for consumer use in the gardening, cooking, healthy eating, and home and office decor markets. The Firm offers multiple lines of indoor gardens, grow lights, nutrient formula, over 40 seed pod kits, and various cooking, gardening and decor accessories, in the United States and Canada, as well as selected countries in Europe, Asia and Australia. As of March 31, 2016, the Company had manufactured and shipped approximately 1.4 million AeroGarden units and approximately 3.2 million seed pod kits to clients and retailers across the world, through two sales channels: retail sales channel, consisting of approximately 1,050 retail outlets (both online and storefront) in North America, and in over five countries internationally, and direct-to-consumer sales channel, which includes Web sales and a direct mail catalogue business, with approximately 574,000 catalogues mailed, as of March 31, 2016. It also utilizes 30, 60 and 120 second television commercials.

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