Urban-gro posts record sales in first quarter

LAFAYETTE — Urban-gro Inc. (OTCQX: UGRO), a Lafayette-based developer of cannabis grow facilities, posted a record $12 million in sales during the first quarter of fiscal year 2021, a 182% increase from the same period last year.

The company trimmed net losses from nearly $1.7 million in the first quarter of 2020 to less than $1.6 million last period. In the first quarter of 2021, Urban-Gro saw adjusted EBITDA in the black at just over $502,000.

“We continued to build significant momentum on multiple fronts throughout the first quarter of this year. Beginning with our uplisting to Nasdaq and the closing of our $62.1 million financing, we have never been in a stronger financial position,” Urban-gro CEO Bradley Nattrass said in a statement accompanying the company’s earnings report. “With a cash position of just under $50 million, and having paid down nearly all of our debt, we are in an ideal position to grow, both organically and through acquisition and investments in complementary companies. In fact, this quarter is our third consecutive quarter where we have had record revenues, positive adjusted EBITDA, and backlog of signed contracts.”

With expanded marijuana legalization across the country, Urban-gro expects its customer base to continue to grow. 

“Looking to the future, we remain laser focused on the execution of strategic growth initiatives

within the food and cannabis [controlled-environment agriculture] space. This includes growing our footprint in the United States as an increasing number of states continue to legalize recreational and adult-use marijuana, gaining traction on our expansion into Europe, increasing our higher margin service offerings during both the engineering and design stages as well as post start-up, and by launching an end-to-end turn-key solution for [controlled-environment agriculture].”

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