Urban-gro files to join Nasdaq, raise $13.8M in IPO

LAFAYETTE — Fresh off its first-ever quarter with a positive pre-tax and interest earnings figure, growhouse engineering firm Urban-gro Inc. (OTCQX: UGRO) has filed to join the Nasdaq Global Markets.

The Lafayette-based Urban-gro said in filings to the U.S. Securities and Exchange Commission Monday that it intends to trade under its existing “UGRO” symbol. It did not specify how many shares of common stock it intends to issue or at what price per share, but did say it intends to raise up to $13.8 million in selling shares to the public.

That haul could increase to $14.66 million depending on if Fordham Financial Management Inc. executes stock warrants that it will receive as the IPO’s underwriter.

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However, it said its application to join the Nasdaq has yet to be approved, and the offering could be scrapped if it can’t secure access toit or another exchange.

Urban-gro has been a publicly traded company since last October within the over-the-counter QX market, where it sought to raise about $4.3 million for early investors.

The over-the-counter markets are driven by networks of broker-dealers making deals among themselves rather than an exchange such as the Nasdaq or the New York Stock Exchange, which broadcasts bid and ask prices for certain securities to everyone in the market.

The company believes that it can corner a portion of the controlled-environment agriculture market, which it expects to grow from a $4 billion market this year into a $10 billion market by 2025.

In particular, it said the COVID-19 pandemic will benefit it long-term by encouraging local, year-round growing indoors rather than relying on food supply chains.

“As COVID-19 has recently shown in its disruption of global supply chains, being able to efficiently and successfully grow food year-round in areas close to existing populations and expected population growth will allow for security in food supply that was not possible before,” the company said.

Urban-gro said it would go public on the Canadian Securities Exchange this year, but that was withdrawn in September.

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