urban-gro has signed two new contracts with long-time clients. The first contract is a strategic enterprise agreement signed with a multi-state operator (MSO) client that operates under a globally recognized brand and provides a variety of cannabis products in regulated markets around the world. In addition to being the exclusive provider of architecture, engineering, and design services for the development and build-out of the client’s new cultivation facilities, urban-gro will also be the exclusive equipment supplier for all the mechanical and cultivation equipment needs of the facilities.
The second contract is with a Canadian-based licensed producer and is expected to generate approximately $9 million dollars of cultivation equipment revenue over the next several quarters. This contract is incremental to urban-gro’s announced backlog of $22.5 million as of September 30, 2021.
Bradley Nattrass, Chairman and Chief Executive Officer of urban-gro, commented: “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. We are thrilled to further strengthen our multi-year relationships with both clients through the signing of these new agreements, providing them increased value and support as we holistically design facilities and supply equipment aligned with their specific needs."