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Urban-gro secures $2.3M in cash to retire debt

LAFAYETTE — Urban-gro Inc. (Nasdaq: UGRO), a Lafayette-based company that provides controlled-environment systems for cannabis companies and other industries, has secured $2.3 million in cash that will be used to retire debt.

The company Thursday announced an agreement under which XS Financial Inc., an equipment-finance company for the cannabis industry, will retire urban-gro’s convertible note for $2.3 million, a 10% discount over the company’s current book value of the investment. The cash payment is in addition to $300,000 in interest earned since making the original $2.5 million investment in the fourth quarter of 2021.

“We believe XS Financial is a great company working to support the cannabis industry by helping clients finance their capital expenditures, and we look forward to continuing our strategic relationship,” urban-gro’s chairman and CEO, Bradley Nattrass, said in a written statement. “As we look ahead and position ourselves for the future, we are focused internally on sound capital management, maintaining a healthy balance sheet, and executing on our multi-sector business development plan.”

Source: BizWest