🎙️ urban-gro, CEO, Bradley Nattrass
urban-gro went public in February 2021, raising $54M. Since then, the company has diversified into other industries while keeping an eye on Cannabis.
Company Overview. Urban-gro is a professional services consulting company with experience in architecture, interior design engineering, construction management, and horticulture. The company made several acquisitions to diversify away from being a Cannabis focused construction management and equipment company to enter CEA, light industrial, Healthcare, Hospitality, Laboratories, and Cold Storage. The company has 6 offices in the U.S. and one in Europe.
Bradley J. Nattrass. Chairman of the Board & CEO. Bradley J. Nattrass has been CEO and Chairperson of the Board since March 2017. Bradley was a Managing Member from March 2014 until March 2017 when the Company converted to a corporation. From October 2015 to August 2016, he was the Managing Member of enviro-glo, LLC, a Colorado limited liability company engaged in the manufacturing and branding of commercial lighting products. Previously, from January 2012 through August 2016, he was the Managing Member of Bravo Lighting, LLC, a Colorado limited liability company engaged in the distribution of commercial lighting products.
Balance Sheet and P&L
$4.8M cash, $2.0M promissory notes as of September 30, 2023
Increase in A/R as a result of signing larger but a lower number of customers:
$20.9M Revenue in Q3 2023, up 69% from Q3 2023
Capital Raise / M&A
February 2021: $54M IPO, selling 5.4M shares at $10/per share
July 2021: Acquired 2WR and MJ12 for ~$9M (cash, equity, earn-out), two companies that have been in the business for 15+ years
May 2022: Acquired Emerald Construction Management for $7M, , inclusive of a maximum $2.0 million contingent earnout, with a combination of $2.5 million in cash and up to $4.5 million in equity
November 2022: Acquired urbanDVO Engineering (26 engineers) for $6.1M ($1.2M cash, $3.8M seller’s note paid out over four quarters, and $1.1M stock at a pre-set price of $4 per share, equivalent to 271,875 shares). DVO generated ~$5.5M of revenue and greater than 20% EBITDA margins TTM as of 9/30/22
August 2023: $2.3M convertible note with XS Financial to retire the Company’s convertible note for $2.3 million, a 10% discount to the Company’s current book value of the investment. The $2.3 million cash payment received is in addition to the $0.3M of interest earned and received since making the original $2.5M investment in Q4 2021
Competitors / Partners
CEA Industries (Nasdaq: CEAD) which also competes in the indoor farming technology market ($23.8 billion in 2016, projected to reach $122.3 billion by 2030). Yields are typically much higher than traditional farming methods and crops can be grown all year round in optimum growing conditions. CEA Industries, with its subsidiary, Surna Cultivation Technologies, which provides management of commercial construction and controlled environment agriculture (CEA). CEA Industries went public in February 2022, raising $24M and is currently ~$4M Market Cap
Agrify (Nasdaq: AGFY) provides cultivation and extraction solutions for the cannabis industry, bringing data, science, and technology to the forefront of the market. Subsidiaries include Precision Extraction, Cascade Sciences, PurePressure, and Lab Society. The company’s comprehensive extraction product line includes hydrocarbon, ethanol, solventless, post-processing, and lab equipment, empowering producers to maximize the quantity and quality of extract required for premium concentrates. Agrify is more of a partner to urban-gro as they can provide Vertical Farming Units (VFU) as a part of cultivations / indoor farms that or introduce urban-gro to their customers. Agrify went public in January 2021, raising $54M and is currently ~$2M Market Cap
Recent Contracts
$9.6M Industrial Design-Build Contract with Existing CPG Client
Multiple Contracts Totaling >$4.5M in the Industrial and Higher Education Sectors
>$11M of Design-Build Services with Existing Client in the Hospitality & Recreation Sector
Multiple Contracts with Clients in the Cannabis Sector for >$3M
$1.5M Contract to Provide Architecture, Interior Design, and Engineering Services
Signs More Than $40M in Contracts, Driving Q1 2023 Backlog to a Record $123M
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