Urban-Gro settles equity sale lawsuit against Texas firm

LAFAYETTE — Cannabis grow-house engineering firm urban-gro Inc. (OTCMKTS: URGO) settled a lawsuit against fellow cannabis firm Total Grow Holdings LLC over the terms of an equity sales agreement.

In a filing to the U.S. Securities and Exchange Commission Tuesday, the Lafayette-based urban-gro said it agreed to settle its lawsuit against Total Grow for just less than $62,000 in six payments and additional attorney’s fees.

Urban-gro held a 24.4% stake in Total Grow until January of this year, when it agreed to sell its ownership position back to the company for $370,000. It later sued Total Grow, claiming that the Texas-based company failed to fully perform its obligations under the sale agreement.

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Under the agreement, Total Grow chief financial officer George Pullar gave up his stake in urban-gro in exchange for the company’s quarter-stake in Total Grow and a warrant to purchase 400,000 shares in urban-gro within the next five years.

Pullar was a board member and formerly CFO of urban-gro.