2nd December 2022
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urban-gro (NASDAQ:UGRO) Closes Asset Acquisition of DVO Engineering, Inc.

urban-gro revenue on second quarter

urban-gro, Inc. (Nasdaq:UGRO), today announced the successful completion of its subsidiary urban-gro Engineering, Inc.’s acquisition of substantially all of the assets of Dawson Van Orden, Inc. effective November 1, 2022.

Bradley Nattrass, Chairman, and CEO of urban-gro commented, “DVO provides several levers for growth, including cross-selling benefits, enhanced margin capture, and an expansion of our professional services offering. The added engineering depth is particularly valuable at a time when we are seeing strong demand for both our professional services and our turnkey design-build offering. We look forward to DVO’s contributions as we work together to expand our CEA footprint.”

urban-gro paid a final purchase price of $6.1 million after working capital adjustments, excluding $1.1 million of contingent consideration that may become payable in cash or equity at the Company’s discretion, through a combination of $1.2 million in cash, $3.8 million of a seller’s note paid out over four quarters, and $1.1 million of UGRO common stock at a pre-set price of $4 per share, equivalent to 271,875 shares. DVO generated approximately $5.5 million of revenue and greater than 20% EBITDA margins in the trailing twelve-month period that ended September 30, 2022.

Jason Dawson, formerly the President of DVO and now urban-gro’s Executive Vice President of Engineering commented, “urban-gro is an incredible company with a vision and trajectory that my partners and I wanted to join. My team – including mechanical, electrical, plumbing, and fire & safety engineers, as well as an industrial architecture team that was formerly at AECOM – are excited to continue to integrate into projects and be a part of a much larger team and company that is rapidly scaling to meet demand. As we have already been working on joint opportunities in both the CEA and Industrial sectors, I’m confident that we will assimilate quickly and be able to take advantage of the immense opportunities in front of us.”

Image provided by urban-gro, inc (NASDAQ:UGRO).

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