urban-gro injects $12 million in new cannabis industry deals By Investing.com
LAFAYETTE, CO – urban-gro, inc. (NASDAQ:UGRO), a company specializing in professional services and Design-Build solutions for the Controlled Environment Agriculture (CEA) and commercial sectors, has received several contracts in the cannabis industry.
These contracts, together, valued at approximately $12 million, will provide engineering, architecture, design, equipment procurement, and construction management services for various agricultural and retail projects.
The company expects to see the majority of revenue from these contracts by the end of the third quarter of 2024. Bradley Nattrass, Chairman and CEO of urban-gro, expressed optimism about the growth of the cannabis industry, saying it is due to positive legal developments, including the potential redistricting of marijuana and the upcoming vote on adult-use marijuana in Florida.
urban-gro has focused on diversifying its strategy and streamlining its operations over the past two years, a time when the cannabis sector was in decline. The company believes that its professional services team is well equipped to deal with the expected increase in demand for solutions designed for the cannabis market.
The announcement comes as the cannabis industry shows signs of recovery, and urban-gro is positioning itself to capitalize on this momentum. The company’s integrated approach, combining professional services with Design-Build capabilities, aims to meet the complex needs of its clients in the CEA and commercial sectors.
This news is based on a press release and includes forward-looking statements about the expected demand for the company’s services and the potential impact of regulatory changes in the sector.
These statements are subject to various risks and uncertainties, and actual results may differ materially from those projected. The company cautions readers not to place undue reliance on these forward-looking statements, which reflect the company’s expectations as of the date of the press release.
In other recent news, urban-gro Inc. expanded its stock incentive plan by an additional 1.2 million shares, following approval at the company’s annual meeting. The move is part of several issues voted on by trustees, including the re-election of all current directors and the approval of executive compensation.
In an effort to maintain strong accounting and financial reporting practices, urban-gro has appointed Sadler, Gibb & Associates LLC as its new registered public accounting firm. This decision was approved by the company’s Board of Directors and Audit Committee.
The company’s financial performance in the first quarter of 2024 was strong, exceeding its quarterly revenue guidance by $15.5 million and limiting its adjusted EBITDA loss to $0.3 million. Despite the decline in revenue from last year, urban-gro’s financial health appears stable, with strong backlogs and a continued focus on returning to adjusted EBITDA. The company is maintaining its full-year guidance of more than $84 million in revenue.
These are the latest developments that demonstrate the financial management of urban-gro strategy and its operational success under industry dynamics.
InvestingPro Insights
As urban-gro, Inc. (NASDAQ:UGRO) is receiving major contracts in the booming cannabis sector, its financial health and market performance are key factors for investors to consider. In accordance with InvestingPro data, urban-gro’s market capitalization reaches a measly $15.28 million, reflecting its position within the niche market of Controlled Environment Agriculture (CEA) services.
Investors should note that urban-gro is trading at a low multiple of earnings, with its price/book ratio for the last twelve months from Q1 2024 at 0.82, suggesting that the stock may be undervalued relative to its assets. Despite revenue growth of 12.08% over the same period, the company’s profit margin remains weak at 15.03%, highlighting potential challenges in turning sales into real profits.
Two serious ones InvestingPro Tips which should be considered that urban-gro has been burning fast through cash and the stock often trades at volatile prices. These things can affect the company’s ability to continue operating and grow in the long term. Additionally, analysts do not expect the company to be profitable this year, which may be a concern for potential investors looking for short-term gains.
For those interested in in-depth analysis, InvestingPro offers additional tips on urban-gro, which can be accessed at Using a coupon code PRONEWS24readers can receive an additional 10% discount on Pro and Pro+ annual or bi-annual subscriptions, which unlock a wealth of investment information and analysis.
This article was created with the support of AI and reviewed by an editor. For more information see our T&C.
