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Urban-Gro Inc. (OTCMKTS: UGROD) is using a reverse stock split to increase the value of its shares outstanding.

In a filing to the Securities and Exchange Commission, the Lafayette indoor agriculture engineering firm said that it exchanged every six shares held by stockholders for one new stock at the beginning of the year.

The stock will trade under the ticker “UGROD” for 20 days before reverting to its “UGRO” symbol.

Companies use reverse stock splits to consolidate their shares outstanding, meaning their shareholders’ ownership stakes aren’t diluted but the shares themselves are in theory more valuable. Such a move usually signals that a company is in dire financial straits.

However, Urban-Gro said this week it projects to have record revenues in 2020 as it prepares to join the Nasdaq Global Markets.

The stock closed at $15 per share on Wednesday with very little trading volume recorded.

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