AWM Investment Company, Inc., a significant stakeholder in urban-gro, Inc. (NASDAQ:UGRO), has reported selling a portion of its holdings in the company. According to the recent SEC filing, AWM disposed of 18,802 shares of urban-gro common stock on December 13, 2024. The shares were sold at a weighted average price of $1.1947, amounting to a total transaction value of $22,462. The transaction occurred as UGRO's stock has declined nearly 18% over the past six months, with the company currently valued at approximately $12.6 million. InvestingPro analysis indicates the stock is trading below its Fair Value.
Following this transaction, AWM retains ownership of 1,212,836 shares of urban-gro, held indirectly through limited partnerships. The investment firm, managed by controlling principals David M. Greenhouse and Adam C. Stettner, continues to maintain a significant interest in the company despite the recent sale. The report clarifies that AWM disclaims beneficial ownership of the shares, except to the extent of its pecuniary interest. InvestingPro data reveals the company's weak financial health score of 1.6, with 12 additional ProTips available to subscribers, including detailed insights on profitability and cash flow metrics.
In other recent news, urban-gro has been making significant strides in its operations. The company has been dealing with Nasdaq compliance issues due to a delayed filing of its quarterly financial report, linked to previously disclosed accounting errors. However, urban-gro remains listed on the Nasdaq Capital Market and has been granted a deadline extension to complete all delinquent filings by January 31, 2025.
On the business front, urban-gro has launched a Processing and Extraction Division, aiming to cater to the growing demand for advanced post-harvest services in the cannabis sector. The company has also secured contracts worth around $12 million in the cannabis industry, expected to significantly boost its revenues.
In addition to its cannabis operations, urban-gro has been selected for architectural and interior design services for the Henry County Water Authority project in Georgia, in partnership with BARGE Design Solutions. Other notable projects include designing the new Union City Fire Station in Georgia and securing a construction contract from the Brazilian restaurant chain Fogo de Chão for a new establishment in Texas.
In terms of financial performance, urban-gro exceeded its first quarter 2024 revenue guidance by $15.5 million and maintains its full-year revenue guidance of over $84 million. As part of its corporate governance, the company has expanded its stock incentive plan by an additional 1.2 million shares and appointed Sadler, Gibb & Associates LLC as its new independent registered public accounting firm. These are the recent developments at urban-gro.
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