Urban-gro adds $2 million to its share buyback program
Just weeks after disclosing a preliminary sales report indicating record revenues in 2021, Urban-gro Inc. (Nasdaq: UGRO) is adding $2 million to its stock buyback program, which now totals $7 million.
“We are pleased to announce the extension of our share buyback program which allows us to return value to our shareholders,” UG CEO Bradley Nattrass said in a statement. “This action underscores our confidence in the strength of our balance sheet, the quality of our assets and our continued ability to generate free cash flow. At recent market price levels, we believe the buyback program is an excellent opportunity to purchase our common shares at a significant discount to their intrinsic value and presents an attractive investment.
Urban-gro announced this month that it expects to record $62 million in sales for fiscal 2021, an increase of more than 140% over the previous year.
“The timing and amount of share repurchases under the program, if any, will be at the discretion of management and will depend on a variety of factors, including price, available cash, general business and market conditions. and other investment opportunities,” the company said. said in a press release.
Urban-gro’s share price hovered around $9.50 on Tuesday and is down more than 10% since the start of 2022.
If the company decides to buy back shares, chances are the current price undervalues the company and will rise.
Urban-gro had an eventful 2021. In February, it went public with an initial public offering of $62.1 million. In June, Urban-gro purchased architecture and interior design company MJ12 Design Studio for $9 million, making it the first integrated architecture, engineering and culture company in the field of marijuana. In August, it posted a quarterly profit for the first time in its history.
This month, Urban-gro invested $2.5 million in XS Financial (CSE: XSF), a company that provides financing and equipment leasing services to cannabis businesses.
Urban-gro was also hit with $5.1 million in what it called fraudulent wire transfers in October and is suing its bank for allegedly allowing the fraud to occur.
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