Urban-Gro Inc. Reaches Settlement with Gemini Finance, Will Issue Stock to Resolve $1.49 Million Loan Default and Foreclosure Dispute
**urban-gro, Inc. Enters Settlement Over Defaulted $10 Million Credit Facility** urban-gro, Inc. recently reached a settlement agreement with Gemini Finance Corp. following a default on a $10 million secured asset-based revolving line of credit extended to its subsidiary, UG Construction, Inc. The default led to a foreclosure and private sale of substantially all UG Construction's assets to Gemini for $450,000 in September 2025. Subsequently, Gemini filed a lawsuit seeking $1,486,189 in remaining claims. Under the September 26, 2025 settlement, urban-gro agreed to issue shares of its common stock to Gemini. The number of shares will be sufficient to cover Gemini's net claim amount upon sale, but with restrictions: Gemini cannot own more than 4.99% of urban-gro's common stock at any time, and the total issuance will not exceed 19.99% of outstanding shares, in line with Nasdaq rules. Gemini also committed to limit daily share sales to 10% of the company's trading volume. Upon completion, Gemini will dismiss its lawsuit with prejudice, and both parties have agreed to a mutual release of claims.
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