Key Takeaways:
- urban-gro, Inc. has secured contracts totaling nearly $8 million in the Controlled Environment Agriculture (CEA) cannabis sector.
- The contracts are spread across four clients and include design-build, architecture, engineering, and equipment integration services.
- The company expects to recognize the revenue from these contracts over the next four quarters.
- The contracts signify a positive shift in the cannabis sector, influenced by business-friendly federal legislation.
- One client, who paused their project earlier this year, has resumed and engaged urban-gro for the build phase.
urban-gro, Inc. (Nasdaq: UGRO), an integrated professional services consulting firm, has secured contracts worth nearly $8 million in the Controlled Environment Agriculture (CEA) cannabis sector. The contracts are spread across four clients and include various services such as design-build, architecture and design, engineering, and equipment integration.
Expanding Footprint Across the U.S.
The contracts cover clients in the northeast, southeast, and western United States. The company anticipates that the revenue for these projects will be recognized over the next four quarters, indicating a strong finish to the current quarter.
Positive Shift in the Cannabis Sector
Bradley Nattrass, Chairman and CEO of Urban Gro, commented on the positive momentum in the cannabis sector. “We are pleased to see activity within the cannabis sector and are encouraged by the anticipated momentum propelled by business-friendly legislation within the Federal government,” he said. One of the contracts involves a client who had paused their project earlier in the year but has now resumed and engaged urban-gro for the build phase.
Future Growth Opportunities
The company sees these contracts as indicative of future growth opportunities. “While these forces ebb and flow, we will be ready to support our clients’ needs when the sector rebounds at some point in the quarters ahead,” added Nattrass.
Photo by CRYSTALWEED cannabis on Unsplash
