AWM Investment Company, Inc., a significant shareholder in urban-gro, Inc. (NASDAQ:UGRO), has recently sold shares of the company's stock. According to a filing with the Securities and Exchange Commission, AWM disposed of a total of 52,191 shares over two days. The micro-cap company, currently valued at $17.86 million, has received a FAIR financial health rating from InvestingPro analysts, despite facing challenges with negative EBITDA of -$12.03 million in the last twelve months.
The transactions, which occurred on November 26 and November 27, 2024, involved selling shares at prices ranging from $1.3852 to $1.48 per share. The total value of the shares sold was approximately $72,295. While the stock has shown significant volatility, InvestingPro analysis suggests the shares are currently undervalued, with additional insights available through their comprehensive Pro Research Report covering 1,400+ US equities.
Following these transactions, AWM Investment Company retains ownership of 1,345,645 shares of urban-gro stock. The shares are held indirectly by AWM through limited partnerships, as noted in the filing. AWM serves as the investment adviser to Special Situations Fund III QP, L.P. and Special Situations Cayman Fund, L.P., which hold these shares.
The filing also disclosed that David M. Greenhouse and Adam C. Stettner, controlling principals of AWM, signed the report on November 29, 2024.
In other recent news, urban-gro has been actively expanding its operations and securing new contracts. The company has notably exceeded its first quarter 2024 revenue guidance by $15.5 million and maintains its full-year revenue guidance of over $84 million. However, it has faced a Nasdaq compliance issue due to a delayed filing of its quarterly financial report, which is reportedly due to a need to restate financial statements for fiscal years 2022 and 2023.
The company has also launched a Processing and Extraction Division to meet growing demand in the cannabis sector and secured contracts worth around $12 million in this industry. In addition, urban-gro has been selected for various design and construction projects, including the Henry County Water Authority project in Georgia, the new Union City Fire Station in Georgia, and a new establishment for the Brazilian restaurant chain Fogo de Chão in Texas.
These are the recent developments at urban-gro, which also include the renovation of the Davidson Student Center at Columbus (WA:CLC) State University and the construction of a new P.F. Chang's restaurant location in Colorado. 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.
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