urban-gro, Inc. Granted Extension by Nasdaq to Regain Compliance
urban-gro (NASDAQ:UGRO) has received an extension from Nasdaq's Listing Qualifications Staff until February 18, 2025, to regain compliance with Nasdaq Listing Rule 5250(c)(1). The extension allows the company to file its delayed Quarterly Reports for Q2 and Q3 2024, along with restatements of financial statements for fiscal years 2022, 2023, and Q1 2024.
The filing delay is primarily due to the company's change in auditor and their ongoing comprehensive audit and review process related to the restatement of historical financial statements. The extension has no immediate impact on UGRO's listing status on the Nasdaq Capital Market.
urban-gro (NASDAQ:UGRO) ha ricevuto un'estensione dal personale delle Qualifiche di Quotazione di Nasdaq fino al 18 febbraio 2025, per riacquistare conformità con la Regola di Quotazione 5250(c)(1) di Nasdaq. L'estensione consente alla società di presentare i suoi Rapporti Trimestrali in ritardo per il secondo e il terzo trimestre del 2024, insieme alle rettifiche dei bilanci finanziari per gli anni fiscali 2022, 2023 e il primo trimestre del 2024.
Il ritardo nella presentazione è principalmente dovuto al cambiamento di revisore e al loro processo di audit e revisione complessivo in corso relativo alla rettifica dei bilanci finanziari storici. L'estensione non ha un impatto immediato sullo stato di quotazione di UGRO nel mercato dei capitali Nasdaq.
urban-gro (NASDAQ:UGRO) ha recibido una extensión del personal de Calificación de Cotización de Nasdaq hasta el 18 de febrero de 2025, para recuperar el cumplimiento con la Regla de Cotización 5250(c)(1) de Nasdaq. La extensión permite a la compañía presentar sus Informes Trimestrales atrasados para el segundo y tercer trimestre de 2024, junto con la reincorporación de estados financieros para los años fiscales 2022, 2023 y el primer trimestre de 2024.
El retraso en la presentación se debe principalmente al cambio de auditor y su proceso de auditoría y revisión integral en curso relacionado con la reincorporación de estados financieros históricos. La extensión no tiene un impacto inmediato en el estatus de cotización de UGRO en el Mercado de Capitales de Nasdaq.
urban-gro (NASDAQ:UGRO)는 2025년 2월 18일까지 나스닥 상장 자격팀으로부터 연장을 받았습니다. 이는 나스닥 상장 규칙 5250(c)(1)에 대한 준수를 회복하기 위한 것입니다. 이 연장은 회사가 2024년 2분기 및 3분기에 대한 지연된 분기 보고서를 제출할 수 있게 하고, 2022, 2023 회계 연도 및 2024년 1분기 재무제표의 수정도 포함됩니다.
제출 지연은 주로 회사의 감사인 변경과 관련된 역사적 재무제표 수정에 대한 종합 감사 및 검토 과정과 관련이 있습니다. 이 연장은 UGRO의 나스닥 자본 시장에서의 상장 상태에 immediate 영향이 없습니다.
urban-gro (NASDAQ:UGRO) a reçu une extension du personnel des Qualifications de Cotation de Nasdaq jusqu'au 18 février 2025, pour retrouver la conformité avec la Règle de Cotation 5250(c)(1) de Nasdaq. L'extension permet à la société de soumettre ses Rapports Trimestriels en retard pour le deuxième et le troisième trimestre de 2024, ainsi que des révisions des états financiers pour les exercices 2022, 2023 et le premier trimestre de 2024.
Le retard dans le dépôt est principalement dû au changement d'auditeur et à leur processus d'audit et de révision complet en cours concernant la révision des états financiers historiques. L'extension n'a aucun impact immédiat sur le statut de cotation de UGRO sur le marché des capitaux Nasdaq.
urban-gro (NASDAQ:UGRO) hat eine Verlängerung vom Nasdaq Listing Qualifications Staff bis zum 18. Februar 2025 erhalten, um die Konformität mit der Nasdaq Listing Regel 5250(c)(1) wiederherzustellen. Die Verlängerung erlaubt es dem Unternehmen, seine verspäteten Quartalsberichte für das 2. und 3. Quartal 2024 sowie die Neufassungen der Finanzberichte für die Geschäftsjahre 2022, 2023 und das 1. Quartal 2024 einzureichen.
Die Verzögerung bei der Einreichung ist hauptsächlich auf den Wechsel des Abschlussprüfers und den laufenden umfassenden Prüfungs- und Überprüfungsprozess im Zusammenhang mit der Neufassung historischer Finanzberichte zurückzuführen. Die Verlängerung hat keine unmittelbaren Auswirkungen auf den Status von UGRO an der Nasdaq Capital Market.
- Received extension from Nasdaq until February 18, 2025 to maintain listing compliance
- No immediate impact on Nasdaq Capital Market listing status
- Required restatement of financial statements for 2022, 2023, and Q1 2024
- Delayed filing of Q2 and Q3 2024 quarterly reports
- Ongoing audit issues following auditor change
Insights
The Nasdaq extension granted to urban-gro until February 18, 2025, represents a important lifeline for the company, but also signals serious underlying concerns. The scope of required restatements, covering multiple fiscal years (2022-2023) and recent quarters, suggests potential material accounting issues that warrant careful investor attention.
The situation raises several red flags: First, the auditor change combined with comprehensive restatements often indicates discovery of significant accounting irregularities or control deficiencies. Second, the extended timeline needed for review implies the complexity and potential materiality of the issues being addressed. Third, while the extension prevents immediate delisting, it places urban-gro under heightened scrutiny.
Historical precedents show that companies undergoing extensive restatements face several challenges:
- Increased scrutiny from institutional investors and potential difficulty in raising capital
- Higher compliance and audit costs that could strain financial resources
- Potential legal exposure from shareholder actions
- Damaged credibility in financial markets that may take significant time to rebuild
While the extension provides breathing room, the February 2025 deadline creates a tight timeline for the company to address complex accounting issues. The preservation of Nasdaq listing status is critical for maintaining market accessibility and investor confidence, particularly for a small-cap company in the emerging CEA sector. Investors should monitor the situation closely, as the outcome of the restatement process could significantly impact the company's financial position and market perception.
LAFAYETTE, CO / ACCESS Newswire / January 29, 2025 / urban-gro, Inc. (NASDAQ:UGRO) ("urban-gro" or the "Company"), an integrated professional services and Design-Build firm offering solutions to the Controlled Environment Agriculture ("CEA") and other commercial sectors, today announced that it has received an exception from the Listing Qualifications Staff of The Nasdaq Stock Market LLC ("Nasdaq") to regain compliance with Nasdaq Listing Rule 5250(c)(1) (the "Listing Rule"). This exception extends to February 18, 2025 the deadline for the Company to file its Quarterly Report on Form 10-Q for the fiscal quarters ended June 30, 2024 and September 30, 2024 and to file restatements of the Company's previously issued financial statements relating to annual and quarterly periods during fiscal years ended December 31, 2022 and December 31, 2023 and for the fiscal quarter ended March 31, 2024.
As previously disclosed, the delay in filing is primarily attributable to the Company's change in auditor and their ongoing comprehensive audit and review process related to the restatement of historical financial statements. While this process requires additional time to ensure accuracy and completeness of the Company's financial reporting, the extension granted by Nasdaq has no immediate effect on the listing of the Company's common stock on the Nasdaq Capital Market.
About urban-gro, Inc.
urban-gro, Inc.® (NASDAQ:UGRO) is an integrated professional services and Design-Build firm. We offer value-added architectural, engineering, and construction management solutions to the Controlled Environment Agriculture ("CEA"), industrial, healthcare, and other commercial sectors. Innovation, collaboration, and creativity drive our team to provide exceptional customer experiences. With offices across North America and in Europe, we deliver Your Vision - Built. Learn more by visiting www.urban-gro.com
Safe Harbor Statement
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. When used in this release, terms such as "believes," "will," "expects," "anticipates," "may," "projects" and similar expressions and variations as they relate to the Company or its management are intended to identify forward-looking statements. The forward-looking statements in this press release include, without limitation, the expected scope of the material misstatements identified in this press release, the Company's ability to remain listed on Nasdaq, and the expected timing of filing restated periodic reports and the Forms 10-Q for the Company's second and third fiscal quarters of 2024. These and other forward-looking statements are based on the current expectations, forecasts, beliefs and assumptions of the Company's management and are subject to risks and uncertainties that could cause actual outcomes and results to differ materially from those anticipated or expected, including, among others, our ability to meet the other continued listing rules of Nasdaq and whether Nasdaq exercises its discretion, if necessary, to grant an extension period based on any plan of compliance we submit. A more detailed description of these and certain other factors that could affect actual results is included in the Company's filings with the Securities and Exchange Commission. Copies of these filings are available online at www.sec.gov. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Company undertakes no obligation to update any forward-looking statements to reflect events or circumstances after the date hereof, except as may be required by law.
Investor Contacts:
Jeff Sonnek - ICR, Inc.
(720) 730-8160
investors@urban-gro.com
Media Contact:
Barbara Graham - urban-gro, Inc.
(720) 903-1139
media@urban-gro.com
SOURCE: urban-gro, Inc.
View the original press release on ACCESS Newswire
FAQ
What is the deadline extension granted to UGRO by Nasdaq for compliance?
Which financial periods require restatement for UGRO?
Why is UGRO delayed in filing its financial reports?
Will UGRO's Nasdaq listing be affected by the compliance extension?
