urban-gro Inc. Completes Acquisition of MJ12 Design Studio and Forecasts the Addition of $7M-$9M of High Margin Services Revenue

Cannabtimes

<![CDATA[LAFAYETTE, Colo., Aug. 2, 2021 – PRESS RELEASE – urban-gro Inc., a fully integrated architectural, engineering and cultivation systems integration company for commercial cannabis and food-focused Controlled Environment Agriculture (CEA) facilities, announced that it has completed the acquisition of MJ12 Design Studio and associated companies, 2WR of Georgia and 2WR of Colorado (2WR+ Partners). The acquisition extends urban-gro’s services into early-stage conceptual design and planning, and it creates the industry’s first fully integrated architecture, engineering and cultivation systems company serving the cannabis and food-focused CEA sectors.urban-gro funded the $9.1-million transaction with a combination of cash and UGRO common stock (issued out of corporate treasury stock from prior buyback program), including contingent consideration of up to $2 million based on achievement of certain performance metrics. The company expects the transaction to be accretive to earnings within the first year and drive significant waterfall revenue opportunities for urban-gro’s existing suite of products and services. In a pandemic-impacted 2020, 2WR+ Partners improved upon 2019 numbers and reported revenue of $6.2 million, net income of $900,000, adjusted EBITDA of $1 million, a gross margin of 43% and an operating margin of 16%.“In addition to increasing the value to our shareholders through an increased earnings per share in the first year following consolidation, we believe that this acquisition creates more than $10 million in incremental waterfall revenues for our existing offerings of engineering and design services as well as cultivation equipment sales,” urban-gro Chairman and CEO Bradley Nattrass said. “With the inclusion of architectural design to complement our existing services, we can now offer fully integrated design solutions for processing, extraction and retail facilities as well. With this acquisition and continuing to work closely with our existing strategic manufacturing partners, we are much closer towards delivering complete, end-to-end turn-key indoor CEA facilities for our clients.”Nattrass…

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Source : urban-gro Inc. Completes Acquisition of MJ12 Design Studio and Forecasts the Addition of M-M of High Margin Services Revenue

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