Urban-Gro Inc (NASDAQ:UGRO) saw its stock jump 16.3% following the sale of its non-controlled environment agriculture (CEA) architecture business for $2 million.
The deal, detailed in a regulatory filing, involves Urban-Gro subsidiaries transferring all shares of 2WR of Georgia, Inc. and related assets to 2WR Holdco, LLC. The sale focuses on the company’s commercial, industrial, and municipal architectural and construction administration services for non-CEA projects, while Urban-Gro retains its core CEA operations.
Under the purchase agreement dated August 27, 2025, the buyer paid $2 million in cash, offset by a prior $500,000 deposit and assumed debt. The agreement also includes standard non-competition and non-solicitation clauses and customary representations and warranties.
Separately, Urban-Gro received a Nasdaq determination letter on August 28, 2025, stating the company has not regained compliance with the minimum $1.00 per share bid requirement. This follows prior notices regarding failure to meet timely filing obligations and maintain minimum stockholders’ equity of $2.5 million.
The company has requested a hearing before a Nasdaq Hearings Panel on October 7, 2025, temporarily staying the suspension of its common stock. Urban-Gro also plans to seek an additional stay pending the panel’s decision.
As part of cost-saving measures, CEO Bradley J. Nattrass voluntarily reduced his annual salary from $450,000 to $350,000 until at least November 30, 2025, with other leadership team members reportedly taking similar voluntary pay cuts.
Additionally, 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 content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.