Urban-gro Inc. (Nasdaq: UGRO), facing delisting from the Nasdaq exchange even as it plans a merger, now faces another challenge: another lawsuit over an unpaid loan.

Grow Hill LLC, based in Seattle, sued Urban-gro Oct. 2 in Denver District Court, alleging that the Lafayette-based indoor-agriculture company defaulted on a $2.1 million note. The lawsuit states that the loan, made Oct. 1, 2024, is secured by a lien encumbering all tangible and intangible assets of Urban-gro.

Grow Hill alleges that Urban-gro is in default on the loan and that the company “did not, and does not, own all of the receivables it pledged as collateral for the Note,” which the lawsuit characterizes as fraud.

Grow Hill is seeking “damages resulting from breach of a promissory note, including accrued, unpaid interes

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