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LAFAYETTE, COLORADO - urban-gro, Inc. (NASDAQ:UGRO), a professional services and Design-Build firm currently trading at $0.57 per share, has announced securing three new contracts with the Brazilian restaurant chain Fogo de Chão. The firm, which InvestingPro analysis suggests is currently undervalued, will manage the construction of a new Fogo de Chão location in Murray, Utah, and will act as the construction manager for projects in Las Vegas, Nevada, and Rancho Cucamonga, California. These contracts come at a crucial time as the company faces revenue challenges, with analysts forecasting a 17% sales decline for the current year.
These contracts expand urban-gro’s partnership with Fogo de Chão, adding to the ongoing projects in Texas and Colorado. The company will handle the projects from preconstruction to post-construction phases, ensuring the restaurant’s standards are met throughout the development process. With a market capitalization of $7.24 million and recent stock volatility showing a 29.57% return over the last week, urban-gro’s Chairman and CEO, Bradley Nattrass, stated, "We look forward to further solidifying our partnership with Fogo de Chão with the effective execution of these new contracts." For deeper insights into urban-gro’s financial health and growth potential, investors can access comprehensive analysis through InvestingPro, which offers exclusive financial metrics and expert research reports.
Work on all three projects is set to commence immediately, with the majority of the revenue expected to be recognized by the third quarter of 2025. This development highlights urban-gro’s capacity to deliver integrated solutions across various markets, showcasing their expertise in the commercial and hospitality sectors. The company’s current gross profit margin stands at 15%, while operating with a debt-to-equity ratio of 2.69. InvestingPro subscribers have access to over 15 additional key insights about urban-gro’s financial position and future prospects.
Fogo de Chão is known for its churrasco-style dining, offering a cultural experience centered around high-quality meats roasted over an open flame. The restaurant’s culinary offerings include a prix fixe Full Churrasco Experience and a Market Table with seasonal selections, catering to various dining occasions.
This information is based on a press release statement from urban-gro, Inc. The forward-looking statements included in the press release are subject to risks and uncertainties that could cause actual results to differ materially from those anticipated. These risks include project delays, economic factors, and the company’s ability to manage acquisitions and forecast costs accurately. The company does not undertake any obligation to update forward-looking statements beyond the date of the press release.
In other recent news, urban-gro, Inc. has announced a series of significant developments that may interest investors. The company has secured a $24 million contract for the construction of a vertically integrated cannabis facility in partnership with a Midwest-based Multi-State Operator. Revenue from this project is expected to be recognized within the current calendar year. Additionally, urban-gro has signed a $4 million deal to lead the design of a hospital in the southeastern United States, with most of the revenue expected within the year.
In another development, urban-gro has entered into a $6 million contract to provide LED lighting equipment to a North American cannabis operator, with revenue recognition slated for the first half of 2025. The company also announced a $1.2 million contract with the Muscogee County School District in Georgia to improve school safety, with expected revenue recognition over the next three quarters of 2025. Moreover, urban-gro has extended its loan terms with Gemini Finance Corp., setting a new interest rate and issuing 150,000 shares as part of the amendment agreement. These recent developments reflect urban-gro’s strategic focus on expanding its service offerings across various sectors.
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