Hydrofarm Holdings to Issue 300,000 Convertible Preferred Shares for Settlement

Hydrofarm Holdings Group, Inc. has entered into an agreement and mutual release to settle all outstanding claims. As part of this settlement, the Company will issue 300,000 shares of a newly designated non-voting, convertible series of preferred stock. These Preferred Shares will be convertible into 300,000 shares of common stock, contingent upon stockholder approval as required by Nasdaq rules. The issuance is being conducted under the exemption provided by Section 4(a)(2) of the Securities Act and Rule 506(b) of Regulation D, with the recipient represented as an accredited investor. Additionally, the Company posted a presentation to its website for investor and analyst communications.