Urban-Gro inks exclusive supplier deal with Milwaukee air-conditioning company
LAFAYETTE — Urban-gro Inc. (OTCQX: UGRO) signed a supplier partnership with Milwaukee-based Desert Aire LLC earlier this week for climate-control equipment.
The Lafayette engineering company said Desert Aire will not offer quotes or proposals to indoor marijuana and hemp cultivators except through them, according to filings with the U.S. Securities and Exchange Commission Wednesday afternoon.
Financial terms of the deal were not disclosed.
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Urban-gro primarily designs and engineers growhouses for marijuana and hemp producers. It said the partnership will attract growers looking for systems that can handle the specific temperature, humidity and de-humidification needs to effectively grow the crops.
Urban-gro sold $17 million in equipment in the first three quarters of 2019, but high cost of sales and increasing operating expenses forced the company to post a $4 million loss in the same time period, according to its latest earnings report.
The company went public on the over-the-counter stock markets last year with a $4.5 million initial public offering at a price of $2.50 per share. Its stock price was unaffected by the news and closed the day at $1.20 per share.
