Briefcase – September 2017

CONTRACTS

Lockheed Martin and the University of Colorado Boulder are expanding their research collaboration with a master research agreement. The partnership builds on a $3 million program announced in 2016 to establish academics focused on radio frequency systems. The new agreement provides a framework for future research projects and academic programs aimed at creating the technologies, industries and workforce of tomorrow. Four new research projects totaling $675,000 have already been identified and are planned for this month.

UQM Technologies Inc. entered a stock-purchase agreement worth $28.3 million that would give a China-based vehicle manufacturer 43.9 percent ownership in the Longmont-based company. UQM Technologies (NYSE: UQM) agreed with Jinan-based China National Heavy Duty Truck Group Co. Ltd. through its subsidiary Sinotruk Ltd. based in Hong Kong, to create a joint-venture to manufacture and sell electric propulsion systems for commercial vehicles and other vehicles in China. UQM develops and manufactures electric motors, generators, power electronic controllers and fuel-cell compressors for the commercial truck, bus, automotive, marine and industrial markets.

Aurora-based UCHealth was selected from among three bidders to run the day-to-day operations of Cheyenne Regional Medical Center. The medical center’s board of trustees in Wyoming voted unanimously to work with UCHealth, which was competing against Centura Health and HCA/HealthONE. The next step is to begin negotiations with UCHealth to define terms and draft a management-services agreement, a process that is expected to conclude in October or November, with execution of the agreement taking place before the end of the year.

DEADLINES

The deadline for nominations for BizWest’s 2017 Boulder Valley IQ Awards, which honor the “innovation quotient” among companies in the Boulder Valley — including Boulder and Broomfield counties and the Denver-Boulder corridor — was extended to Sept. 8. The event will be held Oct. 17 at Galvanize, 1023 Walnut St., in Boulder. Categories won’t be finalized until nominations are submitted and vetted, but the event typically draws nominations in the aerospace, bioscience, business products, clean-tech, computer hardware, computer software, consumer products, Internet, mobile apps, nonprofits, and sports and outdoors categories. A separate IQ Awards program will be conducted for Northern Colorado in early 2018.

The city of Boulder is seeking three volunteers to represent the community at large and serve on its Marijuana Advisory Panel. Individuals interested must be residents of Boulder and have no ties to the cannabis industry. Applicants must submit a letter of interest detailing why they are interested in serving on the advisory panel. Letters can be sent until Sept. 8 to the city manager’s office at licensingonline@bouldercolorado.gov.

Naturally Boulder is seeking applicants for its 13th annual Pitch Slam competition.

The contest is open to Naturally Boulder members. Participating companies must have been in business for at least a year with revenue and be located in the Boulder/ Denver area, and also must have their products in a licensed facility and have liability insurance. The contest is open to companies that have pitched at past events. Applications must be submitted by 5 p.m. Sept. 22. The winning company will go to New Hope Network’s Natural Products Expo West 2018 for free, and will receive $5,000 from Naturally Boulder and a suite of free services. Preliminaries for the Pitch Slam are Oct. 12 and the finals are Oct. 13.

EARNINGS

AeroGrow International Inc. (OTCQB: AERO) a manufacturer of indoor gardening systems, reported $2.5 million in revenue its first fiscal quarter ended June 30, an increase of 14.2 percent from the same period a year ago. The Boulder-based company recorded a loss of $728,000, up from $653,000 in the first quarter a year ago. The company also reported $9.2 million in cash on hand and no debt.

Crocs Inc. (Nasdaq: CROX) grew its earnings significantly year over year for the second quarter, with 21 cents per share in 2017 versus just 13 cents per share for the same period in 2016. Second quarter earnings went from $11.7 million in 2016 to $18 million in 2017. Revenue, however, declined nearly $324 million in second quarter 2016 to $313 million in that same period in 2017. The Niwot-based company was able to improve its selling, general and administrative expenses by 5.8 percent year-over-year to $140.4 million.

Surna Inc. is warning of an uncertain future, with the company posting a loss of 1 cent per share in its second-quarter earnings report, with a net loss of $1 million. Its loss grew from the same period last year, when the company lost $703,700. The Boulder-based provider of agricultural equipment, used often for cannabis growhouses, also had its revenue down 8 percent from $1.9 million in the second quarter of 2016, compared with $1.7 million in the second quarter of 2017.

If it is unable to generate sufficient cash flow from its operations — its cash balance as of June 30 was $1.35 million — or raise capital, Surna warned that it will likely have to reduce the size and scope of its operations.

Zayo Group (NYSE: ZAYO) had a net income of $23.2 million for its fourth quarter of 2017.  However, its stock prices were down after the telecom company missed expectations on its top and bottom line: its EBITDA (or earnings before interest, taxes, depreciation or amortization) was $310.8 million, when the expectation was $314 million. Despite the setback, the Boulder-based telecommunications company managed to grow its net profit to $23 million, up from a loss of $30.9 million during the same period last year.

KUDOS

Office Evolution, a franchisor of co-working space, was named to the Inc. 5000 list of fastest-growing companies in the country. The Louisville-based company had a three-year sales growth rate of 75 percent, ranking it No. 3,878 overall. The company also ranked No. 353 in the business products and services category and No. 61 in the Denver market.

Boulder-based Catapult PR-IR, a business-to-business high-tech public relations and marketing firm, received two national awards for its Strategic Narrative Marketing, a new messaging framework that helps organizations define and own categories. Catapult received a Gold Stevie Award for PR Innovation in the 2017 American Business Awards, and Silver for New Products and Services in Advertising, Marketing and Public Relations in the 2017 Golden Bridge Awards.

For the second consecutive year, Revive Properties of Fort Collins was recognized by the U.S. Department of Energy with national awards for innovation in multi-family homes and innovation in production homes.

The Good Samaritan Society Fort Collins Village received two awards from its National Campus at its annual conference in June in Sioux Falls, S.D. In a company that offers 230 senior living facilities in 24 states, the Fort Collins Village, 508 W. Trilby Road, was one of only 10 locations to be honored for ranking in the 50th percentile or higher for both customer and employee engagement. The second award acknowledged it as the premier location in its four-state region for demonstrating excellence in its business line in 2016. Only nine Society facilities in the country earned this achievement.

MERGERS AND ACQUISITIONS

New Belgium Brewing Co. and a group of partners purchased San Francisco-based Magnolia Brewing Co. The purchasing group features Fort Collins-based New Belgium as the majority partner, with Dick Cantwell, founder of Elysian Brewing Co., and the brewery Oud Beersel as minority partners. The Magnolia Brewing assets were purchased as part of a bankruptcy proceeding, according to a news release. The deal, which cost New Belgium $2.7 million, is expected to close this month.

Shareholders of Boulder-based Nivalis Therapeutics Inc. (Nasdaq: NVLS) on July 19 approved its merger with Alpine Immune Sciences Inc. and issuance of Nivalis’ common stock to Alpine shareholders. Nivalis shareholders will own about 26 percent of the combined company and Seattle-based Alpine shareholders will own 74 percent. Nivalis shareholders also approved a reverse stock split of Nivalis’ common stock, which will offer one new share for every four shares outstanding. They also approved a name change of the new company to Alpine Immune Sciences Inc. Consolidated shares of the two companies began trading July 25 on Nasdaq under the ticker ALPN. Nivalis focuses on treatments for patients with cystic fibrosis.

Herndon, Va.-based REAN Cloud is acquiring 47Lining, a big-data company based in Niwot.

REAN Cloud is a managed-services provider and an Amazon Web Services premier partner. The goal of acquiring 47Lining is to have a stronger suite of big-data analytics, Internet of Things and machine learning. The acquisition will expand REAN Cloud to Colorado’s tech hub and the West Coast. 47Lining will operate as a division of REAN Cloud, but remain its own business unit in Niwot with its team intact. 47Lining’s former chief executive, Mick Bass, will lead the business unit. The two companies are not disclosing financial terms for the deal.

Church & Dwight Co. Inc., the Ewing, N.J.-based parent company of Arm & Hammer, is acquiring Fort Collins-based Water Pik Inc. for $1 billion in cash. The company, which manufactures WaterPik brand showerheads and water flossers, will keep its Fort Collins facility. The deal was expected to close early this month. Water Pik ‘s net sales for the 12 months ending June 30 was about $265 million, making it both the No. 1 water flosser brand and the No. 1 replacement showerhead brand in the United States.

Boulder-based Active Interest Media acquired the United States Team Roping Championships and TRIAD Classification Agency – the organization that has maintained and monitored the handicapping system for the team-roping industry for the past 27 years. Financial terms of the transactions were not disclosed. Based in Stephenville, Texas, the USTRC has more than 30,000 members worldwide. TRIAD uses proprietary software and a data-management system that collects and tabulates performance data in real time.

MOVES

Tendeg LLC, an aerospace engineering firm, will move within the Colorado Technology Center in Louisville to a new building at 1772 Prairie Way. Tendeg is leasing 7,349 square feet of space in the building developed by Ben Blaugrund, owner of Breakaway Business Center LLC. Tendeg will join Fate Brewing Co., which is opening a restaurant, brewery and taphouse later this year;  ePac, a digital flexible packaging company that is expanding operations in the region this fall; and Apex Movement, a parkour gym that recently opened in Blaugrund’s building. Tendeg, moving from 686 S. Taylor Ave., provides aerospace engineering services, including design, analysis, prototyping and flight-unit assembly.

Madwell Creative Agency, based in Brooklyn, N.Y., has moved to 1320 27th St. in Denver’s River North area, citing a greater pool of talent in Denver. Madwell’s Colorado clients include Justin’s Nut Butter and Purely Elizabeth. The agency currently employs eight people in Denver.

Case Logic Inc., a designer of carrying and storage cases for a variety of tech products, will move its operations from the Boulder Tech Center in Niwot to the Campus at Longmont this fall. Case Logic, a subsidiary of The Thule Group, leased 19,096 square feet of space in a 39,000-square-foot building at 2420 Trade Center Ave. in southwest Longmont. Case Logic is moving from 156,000 square feet at 6303 Drycreek Parkway in the Boulder Tech Center.

Peak Serum, a supplier of fetal bovine serum to bioscience researchers, moved its operations from Fort Collins to a larger location in Wellington. Peak Serum has moved to a 3,000-square-foot building at 6598 Buttercup Drive in the Wellington Business Center.

Law firm Lathrop & Gage leased office space in the new Boulder Commons development and plans to move into the net-zero energy building Sept. 30. Boulder Commons is a 100,000-square-foot mixed-use development located at 2440 and 2490 Junction Place, just north of the transit center at Boulder Junction. It was developed by Morgan Creek Ventures in Boulder and San Francisco-based New Island Capital. Lathrop & Gage is taking 9,300 square feet of space at 2440 Junction Place to house its 13 lawyers and 21-member support staff. It is moving from 4845 Pearl East Circle in Boulder.

Fort Collins-based Bank of Colorado is closing its branch at 636 Coffman St. in downtown Longmont and has opened a branch farther south at 916 S. Main St. that formerly housed an AmFirst Bank branch. The shift in location was spurred by Bank of Colorado’s acquisition of AmFirst that was announced in March and closed earlier this summer.

Regenexx, a Broomfield-based company that uses stem cells to alleviate chronic joint pain, moved its headquarters to Des Moines, Iowa, after merging with Harbor View Medical in that city. Financial terms of the deal, finalized in May, were not disclosed. Jason Hellickson will be chief executive of the new company that will go by the name Regenexx, the trade name for Regeneratives Sciences LLC.

OPENING

The DoubleTree by Hilton Conference Hotel at Lincoln Park opened Sept. 1 next to the Union Colony Civic Center in Greeley. It includes Meeker’s Colorado Kitchen & Bar, which serves breakfast, lunch and dinner. The DoubleTree will hold an invitation-only gala on Sept. 15, a community grand opening event from 1 to 4 p.m. on Sept. 16 with a ribbon cutting at 3 p.m., and Meeker’s opening events on Sept. 22 and 23.

UCHealth Longs Peak Hospital at 1750 E. Ken Pratt Blvd. in Longmont received its first five patients on Aug. 31 as the facility opened for business at 7 a.m. The Colorado Department of Public Health and Environment issued the hospital a license to operate the day before.

Ziggi’s Coffee plans to open seven franchises, adding to its eight locations in Northern Colorado and the Denver metro area. The growth will nearly double Ziggi’s footprint, one year after co-founders Brandon and Camrin Knudsen announced plans to franchise the brand.  Ziggi’s has stores in Henderson, Firestone, Lakewood, Westminster and four in its home city of Longmont. Ziggi’s offers three franchise business models: a coffeehouse model, a coffeehouse with a drive-through and a double-sided drive-through. The first franchise is scheduled to open in Loveland this fall. Two other franchisees have properties under contract in Fort Collins and Greeley, and a third franchisee is exploring options in Windsor.

Famous Toastery, a restaurant specializing in breakfast, brunch and lunch, opened Sept. 8 at 3541 E. Harmony Road in Fort Collins.

Sprint is adding 43 stores through its Mountain Southwest region, including nine in Colorado. One of those stores will be at 2660 11th Ave., in Greeley.

Aims Community College celebrated the opening of its new Applied Technology and Trades Center and Welding Building renovation with a ribbon-cutting ceremony, Aug. 16 in Greeley.

GrowGeneration Corp. (OTC: GRWG), a major specialty cannabis store chain, signed a two-year lease in Boulder. The Denver company has nine locations in Colorado, two in California, one in Washington and one in Las Vegas. GrowGeneration sells equipment such as ventilation, soils, nutrients, grow lights and hydroponic equipment, all for commercial and home cannabis growth. The store in Boulder will be the third in the Denver metro market, according to a news release filed with the U.S. Securities and Exchange Commission. The Boulder location will serve as both retail and warehouse. GrowGeneration is leasing 2,000 square feet of space at 1001 Lee Hill Drive, Unit 2, from Emerald Investments Two Ltd., according to the filing.

MedExpress Urgent Care plans a return to Colorado, four years after it sold its six clinics in the state and two years after it was acquired by UnitedHealth Group. Based in Morgantown, W.Va., MedExpress Urgent Care has plans to open clinics in Longmont, Fort Collins and Glendale, providing walk-in treatment for illnesses and injuries, wellness exams and employer health services. The company has submitted plans to the city of Longmont to convert a former bank building into an urgent-care clinic. The 5,000-square foot building at 601 S. Main St., on the southwest corner of Main  and Ken Pratt Boulevard previously housed First National Denver, and prior to that, Mile High Bank. MedExpress also is planning to open an urgent-care clinic in Fort Collins at 110 Boardwalk Drive, the site at the northeast corner of South College Avenue and Boardwalk that previously housed a 4,200-square-foot Ruby Tuesday restaurant.

Fort Morgan-based FMS Bank opened a loan-production office at 1729 Terry St., in Longmont.

Phoenix-based Banner Health opened the Banner Health Structural Heart & Valve Clinic within its medical center in southeast Fort Collins. The clinic at 4700 Lady Moon Drive offers treatment and evaluations for patients who have structural defects involving heart valves or chambers.

Comcast opened a new customer-service center in Fort Collins that will seat 600 customer-service agents. The 80,000-square-foot center at 3420 E. Harmony Road will support residential customers across the country, including those in Northern Colorado.

Automox, a startup that provides patch security, launched with Jay Prassi, one of the founders of SolidFire, as chief executive and $1.3 million of financing in the bank. Automox offers a fully automated platform capable of patching — updating a computer program or data to fix or improve it — any operating system or software in any location. Boulder-based SolidFire, a flash-storage and software-development company, was acquired by NetApp in 2015 for $870 million.

Boulder AI, a new tech startup, is looking to blend software and hardware expertise for the artificial-intelligence industry. It is founded by Darren Odom, who has 10 years of experience in consulting on AI technology.

PRODUCT UPDATE

Longmont-based Mula’s Sausage now is available at King Soopers stores. The producer of all-natural and antibiotic free sausage gained the attention of King Soopers parent company Kroger, which also is adding Mulay’s to its City Market stores.

The DNNCam, a new dustproof and waterproof machine vision camera with onboard processing that is  capable of remote operation in a wide variety of environments, was introduced by Boulder AI, a Boulder-based artificial-intelligence startup.

Former barkeep Quinton Bennett launched Wheelhouse Canning Co. and will produce its first 600-case run of canned cocktails out of Mobile Canning in Longmont. It also plans to roll out a canned whiskey cocktail in coming months. Wheelhouse’s first release will include three flavors: a mint/cucumber vodka, a grape/mint gin and a black tea/lemonade vodka.

SERVICES

BizWest announced several changes and new features for its website, bizwest.com. A new subscription system means that content originally produced for the monthly print edition will be categorized as “premium,” meaning that it will be available only to digital or print subscribers. Some content, including most daily-news items, will be free for 48 hours. BizWest also launched a video series, in partnership with Fort Collins-based V3 Media. The Leadership Series will be under the umbrella of BizWest TV.

Bustang, the Colorado Department of Transportation’s interregional express bus service, began weekend service along the Front Range on Aug. 20, and on Aug. 21 added another round-trip service to its north route weekday service: Fort Collins to Denver at 7:15 a.m. and Denver to Fort Collins at 6:45 p.m., Monday through Friday. CDOT is offering two round trips per day on Saturdays and Sundays between Fort Collins and Denver and between Colorado Springs and Denver.  Round-trip weekend service already exists on Bustang’s west route between Glenwood Springs and Denver.

Retail delivery service Instacart expanded its Fort Collins coverage area to serve 120,000 homes in the area starting Aug. 15. San Francisco-based Instacart lets customers order from retailers such as Whole Foods, Costco, Natural Grocers, King Soopers and Petco, and deliver their orders in as little as an hour.

Four Paws Pet Hotel & Resort in Fort Collins added an indoor pool for dogs that will be used for group swims, individual swimming lessons and rehabilitation therapy. The pool features an extendable dock for dock-diving practice and a zero-depth entry ramp so dogs can enter and exit the water easily. The pool was constructed by AMI Construction at a cost of $300,000.

Comcast is launching residential Internet service with speeds up to 1 gigabit per second throughout Colorado. The announcement comes after the company launched a new platform Xfinity xFi, a digital dashboard for customers to set up their home Wi-Fi network.

The Regional Transportation District added four routes to and from Boulder and Denver International Airport. RTD operates the new trips as route AB2, picking up passengers in Boulder at Boulder Junction at Depot Square, 2280 Junction Place; near the University of Colorado Boulder’s east campus at the corner of 28th Street and Arapahoe Avenue and 28th Street and College Avenue; and the Table Mesa Park-N-Ride, 5170 Table Mesa Drive. There will be two runs to and from the airport in the morning originating from Boulder Junction at 7 and 8 a.m., and two in the afternoon leaving at 6 and 7:05 p.m. The existing AB route that goes to and from Boulder and the airport will continue its service, but it is being renamed AB1.

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