UG Construction, the wholly-owned construction subsidiary of urban-gro, a professional services and consulting firm, finalized a $10 million interest-only revolving asset-based lending facility. According to an 8K filed with the SEC, Gemini Finance was the lender for the facility.

“As we continue to sign larger deals in multiple market sectors, particularly the design-build contracts led by our construction division, it is important that we have continued access to non-dilutive working capital,” Bradley Nattrass, chairman and CEO or urban-gro, said. “This ABL will provide us with the financial flexibility to better manage working capital needs as related to supporting our strengthening growth trajectory.”

The ABL expires in March 2025 and is subject to an automatic nine-month renewal if the borrower complies with all terms of the loan agreement and secures lender approval. The ABL will replace an $8 million facility that the urban-gro discussed on its third quarter earnings call that was never formally executed, as it was not drawn upon.

Bancroft Capital served as the exclusive placement agent to urban-gro for the transaction.