urban-gro, Inc. (UGRO) Bundle
A Brief History of urban-gro, Inc. (UGRO)
Company Formation and Initial Focus
urban-gro, Inc. was established in 2014, focusing primarily on providing integrated solutions for the commercial cannabis industry. The company quickly gained traction by offering advanced cultivation technologies and services.
Growth Phases
In 2017, urban-gro began to scale operations and expand its client base, which included cultivation facilities across North America. By this time, the company had established a reputation for its innovative engineering and design services.
Public Offering
In 2020, urban-gro, Inc. went public via a reverse merger with a publicly traded company, effectively trading on the NASDAQ under the ticker symbol UGRO. The reverse merger was completed in December 2020, allowing the company to access additional capital markets.
Financial Performance
For the fiscal year ending December 31, 2021, urban-gro reported revenues of approximately $15 million, a significant increase compared to $7.6 million in 2020. In the first quarter of 2022, the company posted revenues of $5.4 million.
| Year | Revenue ($ Million) | Net Income ($ Million) | Growth Rate (%) |
|---|---|---|---|
| 2019 | 3.5 | -1.2 | N/A |
| 2020 | 7.6 | -2.4 | 116.7 |
| 2021 | 15.0 | -1.1 | 97.4 |
| 2022 (Q1) | 5.4 | -0.5 | N/A |
Acquisitions and Strategic Partnerships
In 2021, urban-gro acquired the assets of a leading greenhouse design firm, expanding its capabilities in providing a comprehensive range of services for cannabis cultivation facilities. Urban-gro has also formed strategic partnerships to enhance its supply chain and technology offerings.
Stock Performance
As of October 2023, urban-gro’s stock price is approximately $3.25 per share, showing fluctuations from an all-time high of around $14 in early 2021.
Market Position
urban-gro is positioned as a leader in the controlled environment agriculture sector, with a market focus on $1.7 billion in the cannabis cultivation technology industry. The company continues to invest in R&D for new solutions aimed at improving energy efficiency and yield.
Recent Developments
In 2023, urban-gro announced the launch of its new suite of software solutions designed to optimize cultivation operations, expected to contribute an additional $2 million in revenue within the first year of release.
| Key Metrics | Value |
|---|---|
| Market Capitalization | $45 million |
| Employees | Approximately 60 |
| Year Established | 2014 |
| Headquarters | Colorado, USA |
A Who Owns urban-gro, Inc. (UGRO)
Ownership Structure
As of October 2023, urban-gro, Inc. (UGRO) has a diverse ownership structure that includes institutional investors, retail investors, and company insiders. The following table presents a detailed breakdown of the ownership by different categories:
| Ownership Category | Percentage Owned | Number of Shares |
|---|---|---|
| Institutional Investors | 32.5% | 1,500,000 |
| Retail Investors | 47.3% | 2,200,000 |
| Insider Ownership | 20.2% | 900,000 |
Major Institutional Investors
Some of the significant institutional investors owning shares in urban-gro, Inc. include:
| Institution Name | Shares Owned | Percentage of Total |
|---|---|---|
| The Vanguard Group, Inc. | 700,000 | 15.8% |
| BlackRock, Inc. | 500,000 | 11.2% |
| SSgA Funds Management, Inc. | 300,000 | 6.7% |
Insider Ownership
Insider ownership plays a crucial role in the governance of urban-gro, Inc. The following table details the top insiders and their respective shares:
| Name | Position | Shares Owned |
|---|---|---|
| Bradley L. Nattrass | CEO | 400,000 |
| Brenda J. Gibbons | CFO | 250,000 |
| John R. Hensley | CTO | 250,000 |
Recent Share Performance
As of October 2023, urban-gro, Inc. has a market capitalization of approximately $25 million. The stock price has shown fluctuations throughout the year, with the following key metrics:
| Date | Opening Price | Closing Price | Change (%) |
|---|---|---|---|
| January 3, 2023 | $2.50 | $2.80 | +12% |
| July 3, 2023 | $3.00 | $3.20 | +6.67% |
| October 3, 2023 | $2.75 | $2.50 | -9.09% |
Conclusion on Ownership Dynamics
The ownership of urban-gro, Inc. is characterized by a balanced mix of institutional and retail investors, along with notable insider ownership, which significantly influences the strategic direction and performance of the company.
urban-gro, Inc. (UGRO) Mission Statement
Company Overview
urban-gro, Inc. (UGRO) specializes in providing high-performance agricultural solutions for commercial cannabis cultivators. The company focuses on the design, engineering, and installation of controlled environment agriculture (CEA) systems to optimize plant growth and yield. As of October 2023, UGRO operates in a market projected to exceed $32 billion by 2026.
Mission Statement
The mission statement of urban-gro, Inc. is “To empower cannabis cultivators by providing innovative and sustainable solutions to enhance productivity and profitability in controlled environment agriculture.”
Strategic Goals
- Enhance customer experience through tailored solutions and support.
- Drive innovation in cultivation technology.
- Expand market presence domestically and internationally.
- Foster sustainability practices within the agricultural sector.
Current Financial Performance
As of Q3 2023, urban-gro, Inc. reported the following financial metrics:
| Metric | Q3 2023 Amount (USD) |
|---|---|
| Revenue | $13.5 million |
| Gross Profit | $4.8 million |
| Operating Expenses | $3.2 million |
| Net Income | $1.0 million |
| EBITDA | $1.5 million |
| Cash Flow from Operations | $1.2 million |
Market Position
urban-gro, Inc. holds a significant position in the CEA market, with an estimated market share of 8% in the North American cannabis cultivation segment. The company's key clients include major cannabis producers who rely on UGRO’s expertise to enhance their operational efficiency.
Research and Development
The investment in research and development is crucial for urban-gro, Inc. as it aims to lead innovations in sustainable agricultural practices. In 2022, UGRO allocated approximately $2.1 million towards R&D initiatives, focusing on energy-efficient cultivation systems and water conservation technologies.
Environmental Commitment
urban-gro, Inc. is committed to sustainability, working towards minimizing the environmental impact of cannabis cultivation. Their solutions aim to reduce water usage by up to 50% compared to traditional farming methods. Additionally, UGRO promotes the integration of renewable energy sources in their CEA systems.
Community Engagement
UGRO fosters community relations through educational programs, aiming to raise awareness about sustainable agricultural practices. In 2023, the company participated in over 15 community outreach events, impacting over 5,000 participants.
Conclusion on Commitment
urban-gro, Inc.'s mission statement reflects a commitment to providing sustainable, innovative solutions to the cannabis industry. The company's focus on profitability, environmental stewardship, and customer empowerment positions it as a leader in the CEA sector.
How urban-gro, Inc. (UGRO) Works
Company Overview
Company Overview
urban-gro, Inc. (UGRO) specializes in designing, engineering, and building advanced controlled environment agricultural (CEA) systems. Their focus is primarily on the cannabis sector, although they also serve other sectors requiring precise environmental control.
Revenue Streams
UGRO generates revenue through several key avenues:
- Design and Engineering Services
- Equipment Sales
- Installation Services
- Ongoing Maintenance and Support
Financial Performance
For the fiscal year ended December 31, 2022:
- Total Revenue: $18.2 million
- Gross Profit: $3.3 million
- Net Loss: $2.5 million
- Cash and Cash Equivalents: $12.6 million
| Year | Total Revenue | Gross Profit | Net Income (Loss) | Cash and Cash Equivalents |
|---|---|---|---|---|
| 2020 | $7.1 million | $1.2 million | ($0.8 million) | $2.5 million |
| 2021 | $12.3 million | $2.1 million | ($1.5 million) | $6.8 million |
| 2022 | $18.2 million | $3.3 million | ($2.5 million) | $12.6 million |
Market Positioning
urban-gro's market strategy involves:
- Targeting large-scale cannabis cultivators
- Providing customized solutions
- Emphasizing sustainability and energy efficiency
Partnerships and Collaborations
UGRO has established partnerships with various stakeholders in the agricultural technology space:
- Collaboration with lighting manufacturers
- Partnerships with nutrient suppliers
- Alliances with research institutions
Growth Strategy
Looking ahead, urban-gro aims to:
- Expand market share in North America
- Diversify product offerings
- Enhance R&D efforts for innovative solutions
Industry Trends
Key trends influencing UGRO's operations include:
- Increase in legal cannabis cultivation
- Growing demand for sustainable agricultural practices
- Advancements in IoT technology for smart agriculture
Competitive Landscape
urban-gro competes with companies such as:
- Hawthorne Gardening Company
- Fluence Bioengineering
- Greengate Fresh
Challenges and Risks
Potential challenges include:
- Regulatory changes in cannabis legislation
- Supply chain disruptions
- Increasing competition in the CEA market
How urban-gro, Inc. (UGRO) Makes Money
Revenue Streams
urban-gro, Inc. primarily generates revenue through various channels, including:
- Design and Engineering Services: urban-gro offers tailored design and engineering solutions for commercial cannabis cultivation facilities.
- Equipment Sales: The company sells a range of equipment necessary for indoor cultivation.
- Project Management: UGRO provides comprehensive project management throughout the entire build-out process.
- Consulting Services: Urban-gro offers consulting on cultivation best practices and facility operations.
Financial Performance
As of 2022, urban-gro reported the following financial figures:
- Revenue: $37.6 million
- Gross Profit: $10.8 million
- Gross Margin: 28.7%
- Net Income: -$2 million
Market Segments
Urban-gro targets several key market segments, including:
- Commercial Cannabis Cultivators: Represents the largest segment, focusing on facilities in North America.
- International Markets: Plans for expansion into Europe and Latin America.
Growth Strategy
urban-gro has outlined several strategies for growth:
- Expansion of Product Offerings: Continuously enhancing their line of equipment and services.
- Partnerships: Collaborative alliances with other industry players to diversify reach.
- Market Penetration: Increased presence in existing markets through targeted marketing efforts.
Recent Contracts
Significant contracts can greatly influence revenue. Notable contracts include:
| Client | Contract Value | Project Scope | Date |
|---|---|---|---|
| Harvest Health & Recreation | $1.5 million | Design and build-out of cultivation facility | 2022 |
| Red White & Bloom | $2 million | Equipment supply and installation | 2022 |
| Verano Holdings | $1 million | Consulting and management services | 2022 |
Competitive Advantage
urban-gro's competitive advantages include:
- Expertise: A strong team with extensive industry knowledge.
- Technological Integration: Use of advanced technology in designing cultivation systems.
- Reputation: Established credibility and trust within the cannabis community.
Market Trends
Relevant market trends affecting urban-gro's business include:
- Growing Legalization: Increased acceptance of cannabis leading to more cultivation opportunities.
- Technological Advances: Innovations in agricultural technology enhancing cultivation efficiency.
Future Projections
Analysts project the following for urban-gro's future performance:
- 2023 Revenue Estimate: $50 million
- 2024 Revenue Estimate: $65 million
Investment Considerations
Investors closely monitor the following metrics:
- Debt to Equity Ratio: 0.25
- Current Ratio: 2.1
- Return on Equity: -5%
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