LAFAYETTE, Colorado, February 21, 2020 (GLOBE NEWSWIRE) – urban-gro, Inc. (OTCQX: UGRO) (“urban-gro“or the”Society“), a leading engineering design services company that integrates complex equipment systems into high-performance indoor cannabis grow facilities around the world, is pleased to announce today that it signed a definitive loan agreement for the provision of a credit facility in the aggregate principal amount of $ 6 million (the “Credit facility“) with an institutional lender (the”Lender“). The credit facility, which consists of a senior secured term loan of US $ 2 million and a revolving secured demand loan of US $ 4 million, is expected to close on or about February 25, 2020 and remains subject to the conditions. usual closing times.
The proceeds of the credit facility will be used to refinance existing debt and for general working capital purposes.
“Despite difficult financial market conditions, we continue to see an acceleration in demand for our services in North America and Europe. We believe that the completion of this funding will provide us with the necessary resources to meet our expected growth, ”said Bradley Nattrass, CEO and President of urban-gro.
“This financing is expected to significantly strengthen the Company’s balance sheet and reduce its cost of capital, realigning the Company on a path of positive cash flow. This is urban-gro’s number one priority, ”said Dick Akright, chief financial officer of urban-gro.
Separately, the Company extended its existing US $ 1 million note with James Lowe, a director of the Company.
INFOR Financial Inc. acted as exclusive financial advisor to the Company in connection with the financing.
About urban-gro, Inc.
urban-gro, Inc. (OTCQX: UGRO) is a leading engineering design services company that integrates complex equipment systems into high performance indoor cannabis grow facilities around the world. Our highly personalized, plant-centric approach to system design, procurement and integration provides a single point of accountability throughout the project lifecycle. urban-gro further ensures operational efficiency and economic benefit for commercial growers through a full range of professional services and product solutions focused on facility optimization and environmental health promotion. In every engagement, we relentlessly focus on solutions that ensure success. Visit www.urban-gro.com to learn more. Follow urban-gro on Instagram, Facebook, Twitter and LinkedIn.
Safe Harbor Declaration
This press release may contain forward-looking statements based on current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual results to differ materially from those anticipated or expected, including statements relating to the timing and completion of the subject financing, the future capital requirements of the Company and the potential for future growth for the upcoming quarterly and annual periods. These risks and uncertainties are further defined in our files and reports that we have filed with the United States Securities and Exchange Commission (SEC). Actual results and the timing of certain events could differ materially from those projected or contemplated by forward-looking statements due to a number of factors detailed from time to time in our filings with the SEC. Among other things, we may not be able to sustain growth or achieve profitability due to many factors including, but not limited to general market conditions and regulatory uncertainty. Reference is hereby made to the cautions set out in our latest documents filed with the SEC. We have made and will continue to make significant expenses to facilitate our growth objectives and there can be no assurance that we will generate enough revenue to offset these costs in the short and long term. Additional service offerings may subject us to additional legal and regulatory costs and unknown exposures based on geopolitical and other considerations in the jurisdictions in which we operate, the impact of which cannot be predicted at this time.
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