Welcome to our dedicated page for urban-gro news (Ticker: UGRO), a resource for investors and traders seeking the latest updates and insights on urban-gro stock.
urban-gro, Inc. (Nasdaq: UGRO) is a premier cultivation technologies company specializing in delivering top-of-the-line systems, solutions, and technologies to large-scale cannabis cultivators across North America. As an integrated professional services and construction design-build firm, urban-gro provides comprehensive architectural, engineering, procurement, and construction services to clients in the Controlled Environment Agriculture (CEA) and other commercial sectors.
urban-gro is renowned for its innovative cultivation technologies that enhance operational efficiency, reduce costs, and minimize environmental impact. By leveraging cutting-edge technologies, the company helps cultivators achieve scalable growth, optimize economic yield, and ensure sustainability. Recognized as one of the top twenty ancillary companies in the cannabis industry, urban-gro continues to develop proprietary technologies to maximize return on investment.
The company's business model is primarily fee-based, offering knowledge-based services and value-added reselling of equipment. urban-gro’s comprehensive service offerings include architectural design, engineering, systems procurement, integration, and construction design-build solutions. These services cater to clients operating in the CEA, industrial, healthcare, and other commercial sectors.
urban-gro has a substantial project backlog of $110 million as of December 31, 2023, indicating a sequential increase of $26 million. This backlog includes $102 million in construction design-build, $7 million in professional services, and $1 million in equipment systems. The company’s diversified market exposure, where 70% of revenues are tied to commercial sectors and the remaining 30% to CEA, underscores its strategic resilience against market fluctuations.
The company reported revenue of $15.0 million for the fourth quarter of 2023, with a gross profit of $1.7 million, despite facing challenges such as project delays. For the full year 2023, urban-gro achieved revenue of $71.5 million, a 6.7% increase from the previous year. However, the company faced a net loss of $18.7 million, primarily due to reduced demand in the CEA market and ongoing state-level regulatory delays.
Looking ahead, urban-gro anticipates strengthening revenues and achieving positive Adjusted EBITDA in 2024. The company is poised for growth with its professional services and design-build model, supported by an optimized team of architects, engineers, construction management personnel, and horticulturists. With a robust pipeline and sector-diversified approach, urban-gro is well-positioned to capitalize on industry-specific regulatory changes and drive long-term profitable growth.
urban-gro operates offices in Colorado, Texas, Georgia, and the Netherlands, enabling it to serve clients across North America and Europe. The company remains committed to innovation, collaboration, and delivering exceptional customer experiences.
urban-gro (NASDAQ:UGRO) received a notice from Nasdaq on September 21, 2024, regarding non-compliance with listing Rule 5250(c)(1) due to delayed filing of its Q3 2024 10-Q report. The delay stems from the need to restate financial statements from 2022-2024 due to errors in accounting for deferred tax liabilities related to historical share-purchase acquisitions. The company must file all delinquent reports by January 31, 2025 to maintain Nasdaq listing. While there's no immediate effect on the stock listing, failure to meet the deadline could result in delisting, subject to appeal.
urban-gro (Nasdaq:UGRO) has launched a new Processing and Extraction Division to expand its cannabis sector offerings. The division focuses on post-harvest operations, providing integrated design, engineering, and construction services for extraction spaces, including C1D1/C1D2 hazardous environments and dry rooms. The company has hired a Business Development Director with eight years of experience in construction and post-processing to lead the division. This expansion aims to meet growing client demand for advanced post-harvest services and high-quality processing equipment while ensuring facilities meet industry standards and regulatory requirements.
urban-gro, Inc. (Nasdaq:UGRO) has been chosen to provide full architectural and interior design services for the new Henry County Water Authority (HCWA) project in McDonough, Georgia. The project aims to consolidate multiple departments into a single, modern workspace including a new office building, shop, warehouse, and ancillary structures.
Work on the project is starting immediately, with the majority of the contracted revenue expected to be recognized by the end of the second quarter of 2025. urban-gro will collaborate with Nashville-based engineering firm BARGE Design Solutions on this project, focusing on designing a functional and sustainable community resource.
urban-gro, Inc. (NASDAQ:UGRO), a Design-Build firm specializing in Controlled Environment Agriculture (CEA) and commercial sectors, has announced new contracts worth approximately $12 million in the cannabis sector. These contracts, signed with over fifteen clients, encompass equipment procurement, engineering, architecture, and design services for cultivation, extraction, and retail dispensary projects across the U.S. The company expects to recognize most of the revenue by Q1 2025.
CEO Bradley Nattrass attributes this momentum to the anticipated positive results of Florida's Amendment 3 ballot initiative and the release of licenses in new markets. He emphasized the company's strategic decision to retain their entire cannabis business unit during the sector's downturn, positioning them to capitalize on emerging opportunities. Nattrass also expressed support for the Smart and Safe Florida campaign, urging Floridians to vote Yes on Amendment 3 on November 5th.
urban-gro, Inc. (NASDAQ:UGRO), an integrated professional services and Design-Build firm, has secured a contract for architectural design services for Union City Fire Station #44 in Georgia. The project involves designing a state-of-the-art three-story building with three apparatus bays, living quarters, and a community room. urban-gro will serve as a design team partner under Foresite Group.
Work on the project is starting immediately, with the majority of the undisclosed revenue expected to be recognized by the end of the first quarter of 2025. Bradley Nattrass, Chairman and CEO, emphasized that this opportunity allows the company to showcase its expertise in delivering community-centered design solutions and leverage its experience in municipal projects.
urban-gro, Inc. (NASDAQ:UGRO) has been awarded a construction contract to build a new Fogo de Chão restaurant in Katy, Texas. This comes after more than a year of providing Mechanical, Electrical, and Plumbing (MEP) engineering services to the Brazilian restaurant chain. The contract includes preconstruction, construction, and post-construction services for the retrofit project.
Work is set to begin immediately, with the majority of the undisclosed revenue expected to be recognized by the first quarter of 2025. urban-gro's Chairman and CEO, Bradley Nattrass, expressed gratitude for the opportunity to expand their relationship with Fogo de Chão, which began in 2023 with comprehensive engineering services and now regularly includes construction.
urban-gro, Inc. (NASDAQ:UGRO) has been selected to provide architectural design services for the renovation of the Davidson Student Center at Columbus State University (CSU) in Columbus, Georgia. The project involves remodeling student service and activity spaces, updating life safety and code compliance, refreshing furnishings and interior finishes, adding windows for natural light, and incorporating modular seating and flex spaces.
The Davidson Student Center, originally built in 1968 and 1978, is a central hub on CSU's main campus. urban-gro's Chairman and CEO, Bradley Nattrass, expressed enthusiasm for continuing the firm's long-standing relationship with CSU, which spans nearly two decades. The company's local office in Columbus strengthens its connection to both the university and the broader community.
urban-gro, Inc. (NASDAQ:UGRO), an integrated professional services and Design-Build firm, has been awarded its first project with P.F. Chang's under a Master Services Agreement signed in Q3 2023. The project, set to begin in Q3 2024, involves the full build-out of a restaurant in Westminster, Colorado. urban-gro expects to recognize the majority of the undisclosed revenue from this project over the next six months.
This partnership marks a significant milestone in urban-gro's diversification into the hospitality sector. CEO Bradley Nattrass expressed excitement about the collaboration, emphasizing the company's commitment to excellence and innovative construction management solutions in the hospitality industry.
urban-gro, Inc. (NASDAQ:UGRO) has received a notice from Nasdaq on August 20, 2024, stating that the company is no longer in compliance with Nasdaq listing Rule 5250(c)(1) due to not filing its Q2 2024 10-Q report on time. This non-compliance does not immediately affect UGRO's listing on the Nasdaq Capital Market. The delay is due to the need to restate financial statements from 2022 to Q1 2024 because of errors in accounting for deferred tax liabilities related to historical share-purchase acquisitions.
The company has until October 21, 2024, to submit a compliance plan to Nasdaq. If accepted, UGRO may have until February 18, 2025, to regain compliance. urban-gro intends to file the amended reports as soon as possible and, if necessary, submit a compliance plan to Nasdaq.
urban-gro, Inc. (NASDAQ:UGRO) announced a delay in filing its Q2 2024 10-Q and the need to restate financial statements for 2022, 2023, and Q1 2024 due to incorrect accounting of deferred tax liabilities from historical acquisitions. The company expects no material impact on revenue, Adjusted EBITDA, or cash flows. Key points:
1. New auditor Sadler Gibb identified the issue during a re-audit of 2023 financials.
2. Q2 2024 revenue expected to reach $17.5 million, a 13% sequential increase.
3. Restatement likely to reduce cumulative net losses for 2022 and 2023.
4. Company aims to file restated financials and Q2 2024 10-Q as soon as practicable.
5. Previously issued financial reports and communications for affected periods should no longer be relied upon.
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