urban-gro, Inc. (NASDAQ:UGRO), a wholesaler of machinery, equipment, and supplies, announced the expansion of its stock incentive plan following approval by stockholders at the company's annual meeting on Wednesday. The amendment to the 2021 Omnibus Stock Incentive Plan, now referred to as the Amended Plan, allows for an additional 1.2 million shares of common stock to be issued.
This decision was part of several matters submitted to a vote of security holders during the meeting. The company’s stockholders also reelected all incumbent directors, with each director receiving a plurality of votes. The directors include Bradley J. Nattrass, James R. Lowe, Lewis O. Wilks, Anita Britt, David Hsu, and Sonia Lo.
In addition, stockholders approved, on a non-binding advisory basis, the compensation of the named executive officers as disclosed in the Proxy Statement. They also voted for the frequency of future advisory votes on the compensation of named executive officers to occur every year.
The company, headquartered in Lafayette, Colorado, did not record any broker non-votes as the third proposal listed in the Proxy Statement was withdrawn before the meeting, and no non-discretionary matters were voted on.
The information provided in this article is based on a press release statement.
In other recent news, urban-gro Inc. has made significant strides in its operations.
The company has selected Sadler, Gibb & Associates LLC as its new independent registered public accounting firm, a decision that followed a comprehensive evaluation process and received approval from the company's Board of Directors and Audit Committee. This move is a testament to urban-gro's commitment to maintaining robust accounting and financial reporting practices, crucial for investor confidence.
In financial developments, urban-gro reported a strong first-quarter performance for 2024, surpassing its quarterly revenue guidance by $15.5 million and limiting its adjusted EBITDA loss to $0.3 million. Despite a decrease in revenue from the previous year, the company's financial health appears stable, with a strong backlog and a continued focus on returning to positive adjusted EBITDA. The company also maintains its full-year revenue guidance of over $84 million.
These recent developments reflect urban-gro's strategic financial management and operational efficiencies, demonstrating resilience and adaptability in the face of industry fluctuations.
InvestingPro Insights
As urban-gro, Inc. (NASDAQ:UGRO) strives to incentivize its team through the expansion of its stock incentive plan, current and prospective investors may be looking closely at the company's financial health and market performance. Recent data from InvestingPro reveals a mixed financial landscape for the company. With a market capitalization of approximately $16.51 million USD and a negative price-to-earnings (P/E) ratio of -1.03, reflecting investor concerns about future profitability. Additionally, the company's revenue growth over the last twelve months stands at 12.08%, which may signal some positive momentum in sales, despite a quarterly revenue decline of -7.29% in Q1 2024.
InvestingPro Tips suggest that urban-gro is experiencing high price volatility and weak gross profit margins, with a gross profit margin of 15.03% as of the last twelve months leading up to Q1 2024. Furthermore, analysts forecast that the company will not be profitable this year, which aligns with the company's reported operating income margin of -19.47%. The stock has also seen a significant decline over the past three months, with a price total return of -34.63%.
For those considering an investment in urban-gro, it's worth noting that the company operates with a moderate level of debt and has not been profitable over the last twelve months. While the stock has faced challenges, including a substantial drop in price over the last month and no current dividend payments to shareholders, urban-gro's strategic initiatives, such as the amended stock incentive plan, may be a step towards bolstering its market position.
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