Cannabis Industry Capital Markets Climate Affects Growth Strategy

urban-gro's CEO commented on the challenging capital markets climate for the cannabis industry, noting decreased availability of traditional banking and industry capital, which led the company to restructure and focus on profitability rather than top-line growth.

“Given the current capital markets climate, we embarked on restructuring and cost-cutting initiatives to decrease operating expense, increase focus on higher margin divisions, and improve cash flow. Without the availability of traditional banking lines of credit and the industry’s capital markets availability steadily decreasing, we can no longer judge our success solely on top line performance.”

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