Urban-Gro upsizes IPO offering to $55M

LAFAYETTE — Indoor agriculture engineering firm Urban-gro Inc. (OTCMKTS: UGRO) is now seeking to raise just under $55 million in its planned entry to the Nasdaq Global Markets.

In an updated filing to the U.S. Securities and Exchange Commission, the Lafayette company now intends to offer $51.75 million in new stock and $3.24 million in warrants to the initial public offering’s underwriters in the case of oversubscription.

The company is expecting to issue 4,285,714 shares of new stock. At that volume and proceeds target, its stock would need to debut at the $10.50 per share that it closed at on Friday.

SPONSORED CONTENT

Federal District Court Rules Corporate Transparency Act Unconstitutional . . . But Most Small Businesses Must Still Comply

Lyons Gaddis Real Estate and Business Attorney Cameron Grant shares important details of the Corporate Transparency Act (CTA).

The new filing is not effective, meaning the company is still awaiting approval to list on the exchange and those offering figures could change.

The updated funding goal is a significant upsize from the $14.66 million Urban-gro first offered when it made its intentions to join the Nasdaq known in November. Since then, the company has moved its offering size up to $24.43 million and $30.54 million in the past week.

Urban-gro is a designer of grow-houses and climate control equipment for indoor farms and cannabis cultivators. It most recently claimed revenue growth of 6% last year ahead of its official year-end financial report and claims it has $14 million in committed orders on its books.

© 2021 BizWest Media LLC