Hydrofarm Holdings Group, Inc. closed a registered direct offering and concurrent private placement on October 27, 2026, raising gross proceeds of $8.3 million by selling approximately 8.57 million shares and pre-funded warrants at $0.905 per share, along with common warrants to purchase an equal number of shares at $0.78. Concurrently, the company satisfied its ~$109 million outstanding credit agreement obligations by issuing lenders 27.5 million shares of Series 1 Non-Voting Convertible Preferred Stock and corresponding warrants. This restructuring allows the company to report pro forma stockholders' equity exceeding the $2.5 million minimum required by Nasdaq Listing Rule 5550(b)(1), thereby regaining compliance with listing standards after previous extension failures. The company operates in the indoor gardening and horticulture equipment industry.
