Investing.com - Financial Markets Worldwide

Urban-Gro stock soars after selling non-CEA architecture business

Published 03/09/2025, 14:10
© Reuters.
UGRO
-7.71%

Investing.com -- Urban-Gro Inc (NASDAQ:UGRO) stock surged 16.3% following the company’s announcement of a $2 million sale of its non-controlled environment agriculture (CEA) architectural business.

The transaction, disclosed in a regulatory filing, involves Urban-Gro’s subsidiaries selling all outstanding shares of 2WR of Georgia, Inc. and certain related assets to 2WR Holdco, LLC. The deal specifically targets the company’s commercial, industrial and municipal architectural and construction administration services for non-CEA projects, while Urban-Gro retains its core CEA business.

According to the purchase agreement dated August 27, 2025, the buyer paid $2 million in cash, offset by a previous $500,000 deposit and assumed indebtedness. The agreement includes standard non-competition and non-solicitation restrictions, along with customary representations and warranties.

In separate developments, Urban-Gro received a determination letter from Nasdaq on August 28, 2025, stating the company had failed to regain compliance with the minimum bid requirement of $1.00 per share. This follows previous notifications regarding the company’s failure to meet timely filing requirements and maintain minimum stockholders’ equity of $2.5 million.

The company has requested a hearing before a Nasdaq Hearings Panel scheduled for October 7, 2025, which temporarily stays the suspension of its common stock. Urban-Gro plans to request an additional stay pending the hearing outcome.

In a cost-saving measure, CEO Bradley J. Nattrass voluntarily reduced his annual salary from $450,000 to $350,000 until at least November 30, 2025. Other leadership team members have reportedly made similar voluntary reductions.

The company also announced that Lewis O. Wilks resigned from the Board of Directors on August 26, 2025. Wilks has a financial interest in 2WR Holdco, LLC, the buyer in the transaction.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.