GrowGeneration Corp (OTCMKTS:GRWG) Is Today's Small Cap Focus

GrowGeneration Corp (OTCMKTS:GRWG) is a new play for cannabis investors. The company owns and operates specialty retail hydroponic and organic gardening stores. Currently, GrowGen has 11 locations, which includes 9 locations in Colorado, 1 location in California and 1 location in Nevada.It's a pick-and-shovel play on the booming marijuana industry in the U.S. Instead of growing its own cannabis, the company aims to be the preferred retail stop for those looking to grow marijuana indoors. Taking a closer look, GRWG could be a top pick for pot stock investors as well.GrowGen carries and sells thousands of products, including organic nutrients and soils, advanced lighting technology and state-of-the-art hydroponic equipment to be used indoors and outdoors by commercial and home growers. The company's stated mission is to own and operate GrowGeneration branded stores in all the major legalized cannabis states.GrowGen's 11th store, located at 5885 South Valley View Blvd., Las Vegas, NV 89118, is a 10,000 sq ft store, and serves a wide range of small, medium and large scale commercial growers. Conveniently located minutes from the Las Vegas strip, GrowGeneration Las Vegas is one of the largest hydroponic stores in the Nevada market.Nevada presents significant growth opportunities for GrowGen in the legal cannabis market. The potential is attributed to the state's rank as a top tourism destination, generous patient reciprocity laws, and the allowance for medical cannabis businesses to be formed as for-profit enterprises. Recreational use sales are expected to begin in 2017, and grow quickly. According to New Frontier, the combined medical and recreational use sales in Nevada are expected to reach nearly $622 million by 2020. A major key to the industry's growth will be the demand from the state's strong tourism market, with an estimated 55 million visitors in 2016 alone.GrowGen just signed a 5-year lease on a 13,000 square foot facility in Denver, CO for its 12th store. The Denver South location will serve as retail and warehouse location, as well as the Company's corporate headquarters and will service the growing number of both commercial and home growers in the Denver market. The Company also entered into a 5-year lease for a 7,300 sq. ft facility in Trinidad, CO, which will replace and consolidate its existing 3,000 sq. ft. Trinidad store with plans to be open on March 1, 2017, as the Company's new hub for the Trinidad and New Mexico markets. CEO Darren Lampert said:

"Adding our 12th store and 2nd store in the Denver market solidifies GrowGen's position as a significant supplier to the commercial cultivators in the Colorado market. Our new Denver South location was selected due to the over 100 commercial growers within the same zip code of our store location. With over 13,000 sq. ft of retail showroom and warehouse space, GrowGen now operates 18,000 sq ft of warehouse and retail showroom space in the Denver metro market. We are also proud to announce that this location will serve as our new corporate headquarters."

In comparing GRWG's financials and structure to other cannabis names, GrowGen is in a class all by itself. In the quarter ending September 2016, GRWG generated $2.1 million in revenues and a gross profit of $608k. The company posted $511k in cash, $4 million in total assets, and $870k in total liabilities. GRWG has 11,053,548 shares outstanding and 5,703,548 shares in the float.Currently trading with a market cap of $26 million, we are very impressed by what we see in GRWG. The company has a proven management team and is executing on its growth strategy. With the company's strong position in Colorado and now Nevada, there's a clear runway path for growth. We believe an exposure to GRWG, with its strong balance sheet and revenues, presents a compelling opportunity for pot stock investors. These factors look to make GRWG a must-own in the cannabis space.We will be updating our subscribers as soon as we know more. For the latest updates on GRWG, sign up below!Disclosure: We have no position in GRWG and have not been compensated for this article.