Urban-Gro’s CEO On Global Positioning, Expansion In The Cannabis Space

In its eighth year of operation, urban-gro stands out with over 30 experts on staff, ranging from engineers to environmental scientists, said Brad Nattrass, CEO of the agricultural facility firm. 

Last year's result appears to support the assertion, with the Colorado-based company earning $26 million in revenue.

The performance has provided urban-gro with momentum for 2021, the CEO said Thursday at the virtual Benzinga Cannabis Capital Conference. 

Urban-Gro's Financials: Last month, the company reported $12 million in revenue for the first quarter and posted $500,000 in adjusted EBITDA, a company record.

On Thursday, Nattrass highlighted a $15.2-million backlog — signed contracts with unshipped products — for the end of the first quarter as a standout metric.

The backlog revenue generated is not recognized until products ship, the CEO said, adding that he expects this to occur over the next quarter or two.  

"Combined with our $50-million-plus cash position, we're in a strong position right now to execute our strategic plan and execute our M&A plan as well," said Nattrass.

CEO On Urban-Gro's European Expansion: The North American business remains the primary revenue generator for urban-gro, Nattrass said. 

Much of the company's business comes from multistate operators including Organigram Holdings, Inc. (OTC:OGI), Cronos Group Inc. (NASDAQ:CRON) and Cresco Labs Inc. (OTC:CRLBF). Single-state operators comprise the bulk of the rest of the business.

Revenue should diversify as the company moves further into Europe, he said. 

The company is opening an office on the continent, with plans to launch later this year, Nattrass said.

The site would serve as a headquarters, as the company works in several European nations.

Urban-gro's European efforts would come in addition to ongoing activity in Latin America. 

"Our foundation is set for a very efficient launch and growth in countries around the world," the CEO said.