urban-gro, Inc. Secures Design-Build Contract Valued at Approximately $20 Million
urban-gro, Inc. (Nasdaq: UGRO) has secured a $20 million design-build contract with a U.S.-based multi-state Cannabis cultivation and retail dispensary operator. The contract includes the design and construction of a new cultivation facility and the interior retrofit of an existing facility. Revenue is expected to be recognized over the next six quarters, demonstrating the Company's turnkey approach and unique industry expertise. With a team of nearly 140 professional service providers and horticulturalists, urban-gro is well-positioned to guide clients through their projects in the Cannabis industry.
The secured contract by urban-gro, Inc. represents a significant business development within the Cannabis industry, which is known for its rapid growth and evolving regulatory landscape. The contract's value of approximately $20 million is a substantial amount that could have a notable impact on urban-gro's financial performance. The revenue recognition over the next six quarters suggests a steady income stream, which could be favorable for the company's cash flow projections and financial stability.
Investors should monitor urban-gro's operational efficiency in executing the contract, as it could serve as a bellwether for future deals. The company's ability to leverage its turnkey approach for streamlining complex projects could distinguish it from competitors and potentially lead to increased market share. However, investors should also consider the inherent risks associated with the Cannabis industry, including regulatory changes and market saturation, which could affect the long-term viability of such contracts.
With urban-gro's announcement of a $20 million contract, the immediate financial implications for the stock market include potential upward movements in UGRO's stock price due to increased investor confidence. This contract could improve the company's earnings forecasts, positively influencing analysts' ratings and investor sentiment. The multi-year revenue recognition timeline provides a clear future revenue outlook, which is critical for valuation models and investment decisions.
However, it's essential to scrutinize the company's past performance in managing large-scale projects and its capital expenditure requirements to fulfill this contract. The Cannabis sector's volatility and the current economic climate could also play a role in the actual financial impact of this announcement. Investors would benefit from considering the company's margin trends and the scalability of its business model in light of this new contract.
The Cannabis industry is heavily influenced by legal and regulatory frameworks, which can directly impact companies like urban-gro. The ability to secure large contracts within this space indicates not only business acumen but also adeptness in navigating the complex legal environment. As urban-gro expands its footprint through this design-build contract, it must remain vigilant of state and federal regulations that could affect its operations and the execution of its projects.
For stakeholders, understanding the legal context is crucial, as any shifts in legislation could either bolster or hinder urban-gro's project pipeline and revenue recognition. The company's proactive approach in offering professional services and horticultural expertise suggests a strategic positioning to mitigate legal risks and capitalize on industry growth. Stakeholders should, however, remain aware of the legal volatility in the Cannabis sector and its potential impact on urban-gro's long-term contracts and financial health.
01/02/2024 - 08:15 AM
LAFAYETTE, Colo., Jan. 02, 2024 (GLOBE NEWSWIRE) -- urban-gro, Inc. (Nasdaq: UGRO) (“urban-gro” or the “Company”), an integrated professional services consulting firm, today announced that it has secured a 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 contract is valued at approximately $20 million and it is anticipated that revenue will be recognized over the next six quarters.
Bradley Nattrass, Chairman and CEO, commented, “Our turnkey approach coupled with our unique industry expertise allows us to streamline complex projects like this one by seamlessly integrating the design and construction phases. Not only does this simplify the client experience, but it significantly improves speed to market. Building on our business development efforts over the past year, it is rewarding for the team to kick off 2024 with a strong contract win. I remain optimistic that the Cannabis industry will experience increased momentum this year, and our team of nearly 140 professional service providers and horticulturalists will be ready to guide our clients through the next phases of their projects."
About urban-gro, Inc.
urban-gro, Inc.® (Nasdaq: UGRO) is an integrated professional services consulting firm delivering professional services and solutions across architecture, design, engineering, equipment integration, and construction management. Our multi-sector expertise encompasses a diverse set of projects across a host of industries such as CEA, light industrial, healthcare, hospitality, laboratories and more. Our dedicated and innovative team is fueled by a commitment to empower our clients by providing exceptional customer experiences throughout the project lifecycle and beyond, including post-operational support. 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,” 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, relating to future projects, our ability to simplify, streamline, seamlessly integrate design and construction phases, and to shorten the timeframe to become operational and to market, as well as future events, business strategy, future performance, opportunities for growth, prospects, legislative and/or regulatory events, plans and objectives of management. These and other forward-looking statements are based on current expectations, forecasts, and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially from those anticipated or expected, including, among others, our ability to successfully manage and integrate acquisitions, our ability to accurately forecast revenues and costs, competition for projects in our markets, our ability to predict and respond to new laws and governmental regulatory actions, our ability to successfully develop new and/or enhancements to our product offerings and develop a product mix to meet demand, risks related to adverse weather conditions, supply chain issues, rising interest rates, economic downturn or other factors that could cause delays or the cancellation of projects in our backlog or our ability to secure future projects, our ability to maintain favorable relationships with suppliers, risks associated with reliance on key customers and suppliers, our ability to attract and retain key personnel, results of litigation and other claims and insurance coverage issues, risks related to our information technology systems and infrastructure, our ability to maintain effective internal controls, our ability to execute on our strategic plans, our ability to achieve and maintain cost savings, the sufficiency of our liquidity and capital resources, and our ability to achieve our key initiatives for 2023, particularly our growth initiatives. 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. 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:
Dan Droller – urban-gro, Inc.investors@urban-gro.com
Media Contact:
Barbara Graham – urban-gro, Inc. media@urban-gro.com
What contract has urban-gro, Inc. (Nasdaq: UGRO) secured?
urban-gro, Inc. (Nasdaq: UGRO) has secured a design-build contract with a U.S.-based multi-state Cannabis cultivation and retail dispensary operator valued at approximately $20 million.
What does the contract with the Cannabis operator involve?
The contract includes the design and construction of a new cultivation facility and the interior retrofit of an existing facility.
How much revenue is expected to be recognized from the contract?
It is anticipated that revenue will be recognized over the next six quarters.
What is urban-gro's approach to complex projects like this one?
urban-gro's turnkey approach coupled with their unique industry expertise allows them to streamline complex projects by seamlessly integrating the design and construction phases.
How is urban-gro preparing for the next phases of their projects in the Cannabis industry?
With a team of nearly 140 professional service providers and horticulturalists, urban-gro is ready to guide clients through the next phases of their projects in the Cannabis industry.
