On Zoya it says GRWG is halal.
GrowGeneration sells hydroponic equipment, soils, nutrients, and lighting fixtures in states where pot is legal.
It’s not directly involved in pot but it sells equipment for growing it.
Shouldn’t that be considered haram? It’s money comes from people who grow weed and other things.
Welcome, @khalid.karamali! For a company to pass the shariah compliance criteria, it cannot be directly involved in any unlawful business activities which as you noted is not the case for GrowGeneration. However, some investors can argue they do still play a role in enabling the use of marijuana and would prefer to avoid it due to ethical concerns.
A few things worth noting in their annual report:
- While they mention their target market being “commercial growers in the plant-based medicine market”, it’s unclear what the true breakdown is between companies that are using their equipment for medicinal purposes vs. recreational.
- Their products are multi-purpose and can be used for growing more than just cannabis: “Our gardening products, including our hydroponic gardening products, are multi-purpose products designed and intended for growing a wide range of plants and are purchased by cultivators who may grow any variety of plants, including cannabis and hemp.”
The company isn’t directly a “cannabis stock” but it’s certainly perceived as one as it stands to benefit from the legalization of marijuana in the US. Personally, I prefer to avoid it.