urban-gro plans to sell architectural design subsidiary 2WR

LAFAYETTE, CO - urban-gro, Inc. (NASDAQ:UGRO), a micro-cap company currently valued at $5.83 million, announced Thursday it has entered into a non-binding letter of intent with CM Capital Management for the proposed sale of all assets of its architectural design subsidiary, 2WR of Georgia, Inc. According to InvestingPro data, the company’s stock has shown strong momentum with a 26.8% gain over the past week.

The company has received a $500,000 refundable deposit as part of the agreement, with additional payments expected at closing and upon achievement of certain pre-defined earn-out milestones. The transaction remains subject to negotiation and execution of definitive agreements, completion of customary closing conditions, and final due diligence. This move comes as InvestingPro analysis shows the company is quickly burning through cash, with a concerning current ratio of 0.74 indicating potential liquidity challenges.

2WR of Georgia focuses on designing civil, municipal, post-secondary, and healthcare projects primarily in Georgia. Bradley Nattrass, Chairman and CEO of urban-gro, stated the proposed sale aligns with the company’s strategy to streamline operations and refocus on the Controlled Environment Agriculture sector.

"We are confident that CM Capital Management is well-positioned to build on 2WR’s legacy, and we look forward to finalizing terms that benefit all stakeholders," said Nattrass.

The company cautioned there is no guarantee a binding agreement will be reached, and final terms may differ from those outlined in the announcement. urban-gro indicated it will disclose final transaction terms in future announcements and applicable filings with the Securities Exchange Commission.

urban-gro describes itself as an integrated professional services and Design-Build firm offering architectural, engineering, and construction management solutions to various commercial sectors. The company faces significant headwinds, with revenue declining 16.83% over the last twelve months and an EBITDA of -$11.06 million. For deeper insights into urban-gro’s financial health and growth prospects, including 18 additional ProTips and comprehensive analysis, visit InvestingPro.

This article is based on a press release statement from urban-gro.

In other recent news, urban-gro, Inc. has encountered a compliance issue with Nasdaq due to delays in its financial reporting. The company has not submitted its Quarterly Report for the period ending March 31, 2025, nor its Annual Report for the period ending December 31, 2024. This non-compliance was highlighted in a notice from Nasdaq dated May 21, 2025. According to Nasdaq Listing Rule 5250(c)(1), companies are required to file periodic financial reports with the Securities and Exchange Commission in a timely manner. Despite this notice, urban-gro’s common stock listing on the Nasdaq Capital Market remains unaffected at this time. Investors should note these developments as they can impact the company’s financial transparency. These reporting delays have not resulted in any immediate changes to the company’s stock listing status.

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