Urban-gro has new stock repurchase program
LAFAYETTE – The board of directors of Lafayette-based indoor agriculture engineering firm Urban-gro Inc. has authorized the repurchase of up to $2 million of its common stock, the company announced today. The new repurchase program succeeds its prior $8.5 million stock repurchase program that has since been completed.
Under the new authorization, the company may purchase shares of its common stock from time to time in the open market at prevailing market prices, in privately negotiated transactions or other means in compliance with applicable federal securities laws. The timing and amount of stock repurchases under the program, if any, will be at the discretion of management, a company statement said, and will depend on a variety of factors, including price, available cash, general business and market conditions and other investment opportunities.
Information regarding share repurchases will be available in the company’s periodic reports on Form 10-Q and 10-K filed with the Securities and Exchange Commission or as otherwise required by applicable federal securities laws.
Urban-gro had approximately 10.6 million shares outstanding as of Aug. 15.
“This new share repurchase program provides us with another lever through which we are able to return value to our shareholders,” said chairman and chief executive Bradley Nattrass in a prepared statement. “Our balance sheet is in a strong position with approximately $2 per share in net cash as of June 30, 2022, which is providing us the flexibility to put a new authorization in place and continue pursuing our diversified growth initiatives. When considering the long-term strategic investments we are making across Europe, our sector diversification, and the strength of our design-build platform, we believe that recent market prices present an attractive opportunity to buy our common shares at a significant discount to their intrinsic value.”
While revenue for the second quarter of 2022 was up 27% from the same period last year, the company posted a net loss of $1.7 million, compared with net income of $1.3 million in the second quarter of 2021, a quarter that included a Paycheck Protection Program loan forgiveness of $1 million.