Benzinga | Dec 15, 2021 12:08PM EST

urban-gro Inks Strategic Agreement & Cultivation Equipment Contract With Two Long-Time Clients

urban-gro, Inc. (NASDAQ:UGRO) announced Wednesday that it has inked two new contracts involving long-time urban-gro clients.

However, the terms of the agreements weren't disclosed.

The first contract is a strategic enterprise agreement signed with a multi-state operator client that operates under a globally recognized brand and provides a variety of cannabis products in regulated markets around the world.

The Lafayette-based company agreed to serve as the exclusive provider of architecture, engineering and design services for the development and build-out of the client's new cultivation facilities.

In addition, urban-gro agreed to serve as an exclusive equipment supplier for all the mechanical and cultivation equipment needs of the facilities.

The second contract urban-gro signed is with a Canadian-based licensed producer. It is expected to generate roughly $9 million in cultivation equipment revenue over the next several quarters.

Moreover, the contract is incremental to the company's announced backlog of $22.5 million as of September 30, 2021.

"These contracts are focused on signing extended agreements with key clients, which allows us to lock in business for future quarters and years," Bradley Nattrass, chairman and CEO of urban-gro said. "When combined with our increasing purchasing power of cultivation and custom environmental equipment systems through strengthened partnerships with key vendors, we are able to provide significant value to our clients as they continue to grow, bolster our equipment backlog, and drive long-term value for shareholders.

More recent news from urban-gro:

* urban-gro Q3 Financial Results: Record 119% Growth

* urban-gro's Stock Up On Launch Of Financial Services Division & And Partnership With XS Financial

UGRO Price Action

urban-gro's shares traded 1.95% lower at $9.3 per share at the time of writing on Wednesday morning.

Photo: Courtesy of Scott Graham on Unsplash