Urban-gro Secures Convertible Note Financing and Warrants

urban-gro ( (UGRO) ) just unveiled an announcement.

On April 7, 2026, Urban-gro, Inc. entered into a Securities Purchase Agreement with Agile Hudson Partners LLC for a 12% secured, convertible promissory note with an aggregate principal of up to $2.78 million and a purchase price of up to $2.53 million, issued in tranches. The first tranche, funded the same day, provided $2.03 million in proceeds (net of legal fee withholding) and included issuance of common stock purchase warrants and pre-funded warrants with set exercise prices and customary ownership and adjustment terms.

The company also secured a potential second tranche of $0.5 million in additional funding, contingent on covenant compliance, absence of defaults, and timely filing of its 2025 Form 10-K with audited financials, which would increase principal, original issue discount and interest. The note, which carries a one-time 12% interest charge per tranche, is backed by a security interest in substantially all of Urban-gro’s and certain subsidiaries’ assets that is junior to an existing $2 million senior secured loan, and contains provisions requiring partial use of certain future cash proceeds to repay the note.

The securities, including the note, warrants and underlying common shares, were issued in a private placement to an accredited investor under exemptions from Securities Act registration, limiting their resale to registered or otherwise exempt transactions. The convertible pricing structure, exchange cap and beneficial ownership limitations reflect efforts to balance immediate access to capital with dilution controls and compliance with Nasdaq rules, shaping Urban-gro’s capital structure and risk profile for existing stakeholders.

Spark’s Take on UGRO Stock

According to Spark, TipRanks’ AI Analyst, UGRO is a Underperform.

UGRO scores poorly primarily due to sharply deteriorating financial performance (revenue contraction, widening losses, and negative equity) and a technically weak chart (below key moving averages with negative MACD). Corporate events add meaningful risk from Nasdaq compliance/delisting concerns, while valuation offers limited support given ongoing losses and no dividend.

To see Spark’s full report on UGRO stock, click here.

More about urban-gro

Urban-gro, Inc. operates as a publicly listed company focused on providing solutions tied to controlled-environment facilities, with its capital-raising and financing activities oriented around supporting ongoing operations and growth initiatives in its chosen markets. The company’s securities trade on Nasdaq, and its recent actions highlight an emphasis on structured, secured financing and equity-linked instruments.

Average Trading Volume: 5,021,486

Technical Sentiment Signal: Hold

Current Market Cap: $12.43M

See more data about UGRO stock on TipRanks’ Stock Analysis page.