HYDROFARM HOLDINGS GROUP, INC.

Hydrofarm Holdings Group, Inc. completed the sale of its wholly-owned subsidiary, Aurora Peat Products ULC (APP), to 2817049 Alberta Ltd. for $16 million. The transaction, which included a $5 million secured promissory note, will see net proceeds of $14.88 million applied to reduce the company's outstanding senior secured term loan. This divestment aims to optimize Hydrofarm's portfolio, simplify its operating model, and strengthen its capital structure, while also launching 'Project Agility' to scale its logistics services platform.

Hydrofarm Holdings Group received a Nasdaq determination letter on July 2, 2026, for failing to meet the minimum stockholders' equity requirement, despite a prior extension. The company has timely requested an appeal hearing, which temporarily stays any delisting action. Additionally, on July 6, 2026, Hydrofarm was notified of non-compliance with the $1 minimum bid price rule and has 180 days to regain compliance. The company is exploring options but cannot assure regaining compliance or a successful appeal.

Hydrofarm Holdings Group announced it received an extension from Nasdaq on June 16, 2026, to regain compliance with Nasdaq Listing Rule 5550(b). This rule requires a minimum of $2,500,000 in stockholders' equity, among other criteria. The extension is conditional on the Company entering into definitive agreements for strategic transactions and providing specific disclosures, with compliance needing to be evidenced by the filing of its Q3 2026 periodic report. Failure to comply by this deadline could lead to delisting, though the Company would have the right to appeal.

Hydrofarm Holdings Group, Inc. reported a net loss of $14.611 million for the first quarter of 2026, with net sales significantly declining to $28.524 million from $40.534 million year-over-year. Management has expressed substantial doubt about the company's ability to continue as a going concern due to recurring operating losses, negative cash flows, and an event of default on its Term Loan, which makes significant debt obligations due within the next twelve months. The company entered into a Forbearance Agreement with its lenders on April 8, 2026, and is pursuing cost reductions, negotiations with lenders and vendors, and strategic alternatives including asset sales or equity offerings.

Hydrofarm Holdings Group announced its first quarter 2026 financial results, reporting a 29.6% decrease in net sales to $28.5 million and an increased net loss of $14.6 million. The company also disclosed an event of default on its Term Loan due to a deferred interest payment, subsequently entering into a Forbearance Agreement with lenders. Despite significant reductions in Adjusted SG&A expenses and improved Free Cash Flow, the company is exploring strategic alternatives to strengthen its liquidity and capital structure amidst challenging industry conditions.

Hydrofarm Holdings Group, Inc. announced its 2026 Annual Meeting of Stockholders will be held virtually on June 23, 2026. Stockholders will vote on the election of one Class III director, an advisory resolution on executive compensation, and the ratification of CBIZ CPAs P.C. as the independent auditor for fiscal year 2026. The Board of Directors recommends a "FOR" vote on all proposals.

Hydrofarm Holdings Group, Inc. entered into a Forbearance Agreement on April 8, 2026, with its lenders and agents. This agreement follows an Event of Default declared on February 11, 2026, due to the company's failure to pay interest on its $125,000,000 senior secured term loan by the January 31, 2026 due date. The Forbearance Agreement aims to address the default and outlines terms for the period from April 8, 2026.

Hydrofarm Holdings Group, Inc. entered into a Forbearance Agreement on April 8, 2026, with its lenders regarding its $125 million senior secured term loan. This agreement follows an Event of Default declared on February 11, 2026, due to the company's failure to make an interest payment due on January 31, 2026. The Forbearance Agreement provides temporary relief from immediate enforcement actions by the lenders.

Hydrofarm Holdings Group, Inc. (HYFM) announced it received a letter from The Nasdaq Stock Market LLC on April 1, 2026, indicating non-compliance with the minimum stockholders' equity requirement for continued listing on the Nasdaq Capital Market. The company reported a stockholders' deficit of ($63,296,000) as of December 31, 2025, falling significantly below the required $2.5 million minimum. Additionally, HYFM failed to meet alternative compliance standards, including a market value of listed securities below $35 million and net income from continuing operations below $500,000. While the notice has no immediate impact on the stock's listing, the company has until May 16, 2026, to submit a plan to regain compliance, with a potential extension until September 28, 2026.