Is This Why The urban-gro (UGRO) Stock Rose In Recent Trading?

After delivering a business update and current outlook, urban-gro Inc. (NASDAQ: UGRO) is soaring on the charts today, up 19.71% to trade at $4.07 at the last check. The UGRO stock price ended the most recent trading day at $3.40.

What update has UGRO provided?

Today, urban-gro (UGRO) updated investors on the performance of its design-build division and reaffirmed its forecast for the third quarter of 2022.

  • Urban-gro launched its full turnkey design-build solution following the acquisition of Emerald Construction Management in the second quarter.
  • Under this solution, the company acts as a single point of contact for the management of architecture, engineering, cultivation design, construction, and equipment procurement and integration.
  • Design-build solutions are offered for growing facilities, retail dispensaries, and numerous building types in the industrial and healthcare sectors by IGRO’s top in-house professional services team.
  • These additional design-build contracts, which total more than $50 million in projects signed in the third quarter, come from a variety of clients, including top international CPG companies and cannabis CEA clients.
  • A design-build contract is distinct from any orders for related professional services or equipment systems and is normally acknowledged over a period of 6 to 24 months.
  • These new contracts show actual value for the firm and its clients, as client interest and involvement in urban-turnkey gro’s design-build capabilities have progressed as anticipated.
  • In order to position itself for long-term, consistent, and sustainable global growth, urban-gro reaffirmed its third-quarter guidance.

UGRO’s financing move:

Recently, urban-gro (UGRO) participated in a funding scheme. XS Financial Inc. declared the receipt of its $10 million delayed draw. A specialty finance firm called XS Financial offers cannabis businesses in the US equipment and CAPEX financing options. Unsecured convertible notes financing totaled $43.5 million in principle, of which $33.5 million was funded at close on November 1, 2021. Along with other strategic partners including Landrace Financial, Bengal Capital, and KEY Investment Partners, UGRO was one of the well-known institutional investors.