Urban-gro, Inc. (UGRO) experiences an incline of 5.52% in the aftermarket. However, the last trading session concluded at $12.87 with a decrease of 3.88%.
XS Financial Enters into Strategic Partnership with UGRO
On 5th October 2021, URGO and XS have formed a strategic collaboration. This agreement allows XS Financial to provide CAPEX leasing options to urban-gro clients while also giving XS customers access to urban-vendors gro’s and increased purchasing power.
Many of the industry’s major multi-state and single-state operators have entrusted XS Financial and UGRO with their business. By funding the purchase of equipment for a common MSO client, the two firms have already proved their mutual success. Last but not least, the company is expanding its syndication desk, giving XS more non-recourse and non-dilutive capital market access.
Second Quarter 2021 Financial Results
UGRO announced second-quarter 2021 financial results on 11th August 2021. In the second quarter of 2021, urban-gro turned a profit, earning $1.3 million in net income compared to a net loss of $1.6 million in the first quarter of 2021. This owed to increased revenues, gross profits, and debt forgiveness. In Q2 2021, revenue reached a new high of $12.8 million, up from $12.0 million in Q1 2021 and $4.0 million in Q2 2020.
Moreover, Adjusted EBITDA reached a new high of $0.6 million, up from $0.5 million in the first quarter. Revenues grew by 201 per cent to $24.9 million in the first half of 2021. From a loss of $2.3 million, adjusted EBITDA increased by $2.3 million to $1.1 million, while income from operations increased by $2.7 million to $0.4 million.
Acquisition of MJ12 Design Studio
UGRO announced the acquisition of MJ12 Design Studio on 2nd August 2021. 2WR of Georgia and 2WR of Colorado have been acquired by MJ12 Design Studio. The purchase expands urban-capabilities gro’s to include early-stage conceptual design and planning. This will result in the industry’s first fully-integrated architectural, engineering, and cultivation systems firm serving the cannabis and food-focused CEA sectors.
Moreover, the $9.1 million deal was a mix of cash and UGRO common stock (issued from corporate treasury stock from a previous buyback program). Lastly, this is done with a contingent consideration of up to $2.0 million dependent.
