urban-gro

Colorado-based Urban-gro offers fully integrated indoor CEA facilities for cannabis and food production. The company designs, engineers, and integrates end-to-end cultivation systems for its customers. Urban-gro also offers customer service solutions including training, and audits, through its “gro-care” service platform. As of 2022, Urban-gro serves customers in North America and Europe and has completed over 450 projects.

Key customers and partnerships

In August 2023, the Company partnered with XS Financial Inc to enter into an agreement related to investment USD 2.3 million in private placement convertible notes with a 10% discount to the Company’s current book value of the investment.

In January 2022, Urban-gro entered into a partnership with Thrive Agritech for its LED lighting solutions. According to the agreement, Thrive Agritech will be the authorized supplier for lighting systems for Urban-gro’s integrated solutions. The company partnered with Teens for Food Justice, a youth-led organization providing hydroponic farming solutions for food security, to open a new indoor vertical farm at Bruce Randolph High School in April 2022

Funding and Financials

The company went public on the NASDAQ  in July 2021, raising USD 62.1 million, offering 6,210,000 ordinary shares at USD 10 per share. The funds were to support Urban-gro’s expansion plans into the European market, and general corporate purposes, which included funding future investments and acquisitions that aligned with the company’s growth strategy. 

The company reported its preliminary revenue FY2021 at USD 62 million and a net loss of USD 0.3 million. However, adjusted EBITDA for the same period grew 333% to USD 2.1 million from a loss of USD 0.9 million last year, reflecting the growth in revenue and gross profit margin. 

In November 2023, Urban-gro secured a USD 9.6 million Design-Build contract. The Company expects to complete this industrial contract for a CPG client's project in the Southwest United States over the next three quarters. Following this, In January 2024, The company secured a ~USD 20 million design-build contract with an existing vertically integrated U.S.-based multi-state Cannabis cultivation and retail dispensary operator. The contract is for the design and construction of both a new cultivation facility and the interior retrofit of an existing facility. The company expects to recognize the generated revenue over the next six quarters.