UGRO News & Events

Urban-Gro trading halted, news pending

Urban-Gro announced that it received a determination letter from The Nasdaq Stock Market LLC indicating that the company's common stock is subject to delisting due to non-compliance with Nasdaq Listing Rules 5250(c)(1) and 5550(b)(1). The Determination follows the company's inability to timely file its Annual Report on Form 10-K for the fiscal year ended December 31, 2024, and its Quarterly Reports on Form 10-Q for the periods ended March 31 and June 30, 2025, as well as its failure to maintain the minimum stockholders' equity of $2.5M required under Listing Rule 5550(b)(1). The company plans to immediately appeal the Determination and request a hearing before the Nasdaq Hearings Panel. By filing this appeal request, the delisting determination will be stayed for 15 calendar days from the date the appeal is submitted. The company also expects to request an additional stay pending the outcome of the hearing. Until the hearing panel makes a determination regarding the stay request, the company's common stock will continue to trade on Nasdaq. Despite the challenges outlined in the Determination, urban-gro has implemented a comprehensive multi-pronged strategy designed to strengthen its financial position, restore regulatory compliance, and enhance long-term shareholder value.

urban-gro 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. Under the letter of intent, the Company received a refundable deposit of $500,000. Additional cash is expected to be paid at closing and upon achievement of certain pre-defined earn-out milestones. The transaction remains subject to the negotiation and execution of definitive agreements, completion of customary closing conditions, and final due diligence by both parties.