On March 02, 2020, SMG Growing Media, Inc. announced that it has discussed with AeroGrow International, Inc. Board and members of the Company’s management team SMG’s concerns regarding the complexity of the Company’s operating model and ownership structure, and the costs that the Company incurs as a result of these complexities. SMG Growing stated that at the Company’s Board meeting on February 27, 2020, it has shared its concerns with the entire the Company Board and asked the Company Board to consider various options to reduce these complexities and related costs in an effort to improve Company’s profitability. In addition, SMG expressed its view that the outsourcing of most of Company’s operations to SMG or an affiliate of SMG would: (i) simplify the Company’s organizational structure; (ii) significantly reduce the Company’s operating expenses and selling, general and administrative expenses; (iii) result in the liquidation of all or a significant amount of the Company’s working capital and tangible assets; and (iv) significantly decrease the Company’s need for financing.