You have to give credit to 1 cent Tony for raising $20m and securing job for himself for many years. Knew all along this would go to otc again. Many folks here blasted me for saying that. All the cheerleaders who supported reverse split seem to have disappeared.
The entire board should be replaced......"clean house"...
"On April 10, 2023, CEA Industries Inc. (the “Company”) received a letter from the Listing Qualifications Department of the Nasdaq Stock Market (“Nasdaq”) indicating that, based upon the closing bid price of the Company’s common stock for the 30 consecutive business day period between February 24, 2023, through April 6, 2023, the Company did not meet the minimum bid price of $1.00 per share required for continued listing on The Nasdaq Capital Market pursuant to Nasdaq Listing Rule 5550(a)(2). "
Industry article - non-cannabis.
Vertical farm files for Chapter 11 protection, CEO departs
Orlando, Fla, April 04, 2023 (GLOBE NEWSWIRE) — Kalera Public Limited Company (“Kalera PLC” or the “Company”) (Nasdaq: KAL), a vertical farming company headquartered in Orlando, Florida, announced today that its wholly-owned and main operating subsidiary, Kalera, Inc. (“Kalera”) has filed a voluntary petition (the “Chapter 11 Case”) in the United States Bankruptcy Court for the Southern District of Texas (the “Bankruptcy Court”) seeking relief under Chapter 11 (“Chapter 11”) of Title 11 of the United States Code (the “Bankruptcy Code”).
BB #: 117489 Canadawide Fruit Wholesalers Inc.
Kalera will continue to operate its business as “debtor-in-possession” under the jurisdiction of the Bankruptcy Court and in accordance with the applicable provisions of the Bankruptcy Code and orders of the Bankruptcy Court. Kalera will be filing various “First-Day” motions with the Bankruptcy Court requesting customary relief that will enable Kalera to transition into Chapter 11 without disruption to its ordinary course operations.
Kalera PLC, Kalera S.A. and other subsidiaries including Vindara, Inc. and Iveron Materials, Inc. are not included in the Chapter 11 filing. Kalera intends to use the court-supervised process to evaluate strategic alternatives for Kalera, including a potential sale of Kalera or its assets.
In connection with the filing, Kalera PLC has appointed Mark Shapiro, Senior Managing Director at B. Riley Advisory Services, as Chief Restructuring Officer. Mr. Shapiro will oversee the business and its restructuring process, working to execute on the Company’s business strategy and conduct a value-maximizing sale process. Mr. Shapiro brings deep experience in managing complex financial and operational restructurings, including providing interim management services to preserve and maximize value.
BB #: 375025 Varstar Alliance, Inc.
“The Chapter 11 process will allow Kalera to continue operations and serve its existing customer base while it evaluates strategic alternatives for its business and assets,” said Mark Shapiro, Chief Restructuring Officer for Kalera PLC.
To enable Kalera to continue operations during the reorganization process, Kalera’s existing lender has agreed to provide Kalera with $5.1 million of debtor-in-possession (DIP) financing subject to the satisfaction of certain customary conditions, including the approval of the Bankruptcy Court (which has not been obtained at this time).
Effective as of March 29, 2023, Jim Leighton’s employment with the Company as President and Chief Executive Officer ended, so that Mr. Leighton could pursue other opportunities. Mr. Leighton also resigned as member of the Company’s Board of Directors (the “Board”). The Company’s executive management team, including Austin Martin (Chief Operating Officer), Fernando Cornejo (Chief Financial Officer), Dr. Cristian Toma (Founder and Chief Science Officer), and Leon Lachance (Senior VP of Human Resources) will remain with the Company. The following individuals will remain on the Board: Curtis Williams (Chair of the Board), Robert Arnall, Brent de Jong, Sonny Perdue, and Dr. Cristian Toma.
BB #: 104221 Vena, John, Inc.
Kalera also announced that it has retained the law firm Baker & Hostetler LLP, as legal advisor, and B. Riley Advisory Services, as financial advisor, to assist in the Chapter 11 Case filing, its restructuring and review of all available strategic alternatives. In light of this ongoing review, the Company was not able to file its Annual Report on Form 10-K for the year ended December 31, 2022 by March 31, 2022. At the present time the Company does not have an estimate of when such filing will be made.
On April 14, 2022, Kalera entered into a Loan and Security Agreement (“Loan Agreement”) with Farm Credit of Central Florida, ACA (“Farm Credit”), under which Farm Credit agreed to make (i) revolving loans in an aggregate principal amount of up to $10 million and (ii) one or more term loans in an aggregate principal amount up to $20 million (collectively the “Loans”). On March 21, 2023, Farm Credit informed Kalera that as of the close of business on March 17, 2023, Farm Credit had sold its interest under the Loan Agreement to Sandton Credit Solutions Master Fund V, L.P. (“Sandton”).
The commencement of the Chapter 11 Case constituted an Event of Default that accelerates Kalera’s obligations under the Loan Agreement. The Loan Agreement provides that upon the Chapter 11 Case filing the unpaid principal and interest due under the Loan Agreement are automatically due and payable. However, any efforts to enforce such payment obligations under the Loan Agreement are automatically stayed as a result of the Chapter 11 Case filing, and the creditors’ rights of enforcement in respect of the Loan Agreement are subject to the applicable provisions of the Bankruptcy Code.
Industry article mentions investment in CEA for non-Cannabis segment.
Local Bounti releases 2022 financial results, secures $145MM of additional financing
HAMILTON, Mont., March 29, 2023 /PRNewswire/ — Local Bounti Corporation BB #:368695, a breakthrough U.S. indoor agriculture company combining the best aspects of vertical and greenhouse growing technologies, today announced that it secured a total of up to $145 million of new financing across two sources – the first through an amendment to its credit facility agreements with Cargill Financial Services International, Inc.; and the second, a sale-leaseback deal with an internally managed net-lease real estate investment trust. The combined financing supports Local Bounti’s growth plans and immediate efforts to increase production to meet accelerating demand for the Company’s products.
BB #: 117489 Canadawide Fruit Wholesalers Inc.
Kathleen Valiasek, CFO of Local Bounti commented, “We are very pleased with the outcome of these transactions and the support they provide for Local Bounti’s growth ambitions. We remain laser focused on identifying opportunities where we can utilize our flexible Stack & Flow Technology to deliver improved yields to meet the robust demand for locally grown and sustainable produce that we are seeing across our industry-leading distribution footprint.”
On March 28, 2023, Local Bounti entered into an amendment to its existing credit agreements with Cargill to expand the facility from $170 million to up to $280 million per the terms and conditions of the agreement, including capital to fund construction at the Company’s facilities in Georgia, Texas and Washington, subject to certain conditions. In consideration for the improved flexibility and the expanded size of the facility, Local Bounti issued Cargill 5-year warrants to purchase up to 69.6 million shares of common stock with a per share exercise price of $1 per share, representing more than a 100% premium to Local Bounti’s current stock price.
Local Bounti also entered into an agreement with an internally managed net-lease real estate investment trust for the sale-leaseback of its two facilities located in Carpinteria and Oxnard, California for approximately $35 million. The closing of the sale-leaseback transaction is subject to customary closing conditions and is expected in the second quarter of 2023.
BB #: 375025 Varstar Alliance, Inc.
Full Year 2022 Financial Results
Local Bounti today announced its financial results for the three and twelve months ended December 31, 2022 and provided sales guidance for full year 2023.
Craig Hurlbert, Co-CEO of Local Bounti, stated, “2022 marked our first full year as a public company, complete with several important milestones. We made significant advancements in the refinement and productivity of our Stack & Flow Technology, which continues to underpin our business model with a capital efficient tool to enhance crop turns and maximize return on investment across a variety of CEA approaches. Beyond our greenfield expansions, this technology affords us flexibility to establish greater scale quickly through strategic acquisitions — which we demonstrated with our Pete’s transaction where we are integrating our technology to further improve upon the productivity of those assets. With our distribution reach, which surpasses 10,000 doors, and our growing capacity that is improving by the day, we have also attracted new partnerships and expanded others — most notably with the offtake agreement with Sam’s Club for our leafy greens production. Together, our integrated team is driving synergies across our Company while also driving the business forward with new product development.”
BB #: 104221 Vena, John, Inc.
Mr. Hurlbert added, “Looking ahead to 2023, we are poised to complete our Georgia and Texas facilities and our Washington facility in 2024. Further, we continue to push forward our other projects with the resources provided by today’s announcement of the new financings. With this additional capital, we believe that we have the funding required to drive the business to positive adjusted EBITDA.”
Full Year 2022 Financial Summary
Sales of $19.5 million in 2022, as compared to $0.6 million in the prior year period.
Gross profit was $2.2 million in 2022. Adjusted gross margin percentage1 was approximately 38%, excluding depreciation, stock-based compensation, business combination related costs, and other non-recurring items.
Net loss was $111.1 million in 2022 as compared to net loss of $56.1 million for the prior year period. Adjusted EBITDA loss was $29.8 million, which excludes $39.2 million in stock-based compensation, $16.7 million in interest expense, $10.4 million of depreciation and amortization, fair value inventory adjustment of $1.0 million, business combination and integration costs of $10.1 million, restructuring costs of $1.1 million, $2.6 million of loss on disposal of fixed assets, utilities price spike and inclement weather related costs of $0.4 million, and other discrete items. Adjusted EBITDA loss in the prior year period was $17.8 million.
BB #: 104793 Schwartz, Ben B., & Sons, Inc.
See reconciliation of the non-GAAP measures at the end of this press release.
Commercial Facility Expansion Update
Byron, Georgia Facility Phase 1-A, 1-B and 1-C Progress
The Company completed its first “Stack” vertical zone in the fourth quarter, as part of its of Stack & Flow Technology implementation, and is producing product in Phase 1-A. Construction of Phase 1-B is progressing and the Company now expects completion of this phase early in the second quarter of 2023. Following Phase 1-B completion, the site’s greenhouse footprint will be established and ready to integrate the complementary Stack zones that comprise Phase 1-C.
Construction Commences on “Stack” integration at Georgia Facility
Georgia facility Phase 1-C construction has commenced, which reflects the integration of its vertical “Stack” component of the facility architecture. The Company now expects this work to be completed and operational early in the fourth quarter of 2023, following some weather induced construction delays. The Company’s Stack & Flow Technology is expected to add approximately 40% of incremental revenue generating capacity to the finished Georgia facility, which will be comprised of six acres of greenhouses and multiple climate, water, and spectral controlled Stack zones.
Construction Underway at Mount Pleasant, Texas Facility
In early January 2023, the Company started construction of the six-acre facility, which will leverage Local Bounti’s proprietary Stack & Flow Technology™ to grow and sell its indoor grown line of packaged leafy greens. Varieties will include spring mix, butter lettuce, romaine crisp, green leaf, and additional blends. The addition of the new facility in northeast Texas is expected to fortify Local Bounti’s distribution in markets across Texas, Oklahoma, Louisiana, Mississippi, Arkansas, Kansas, and Missouri. Further, the facility is designed to provide additional capacity to meet existing demand from Local Bounti’s direct relationships with blue-chip retailers and distributors throughout the region. The facility is expected to commence operations in the fourth quarter of 2023.
Pasco, Washington Facility Progress
The Pasco, Washington facility continues to progress with anticipated completion in first quarter 2024, which reflects the Company’s decision to stagger construction to accommodate the commissioning of its Texas facility in the fourth quarter of 2023. The Washington facility will be comprised of multiple Stack zones and three acres of greenhouse.
In January 2023, Local Bounti successfully launched its chef-inspired Asian Style Chicken Lettuce Wrap Kit, a restaurant-quality meal solution that is prepared at home in about 5 minutes, at 194 Sprouts Farmers Markets locations in California and Arizona. Local Bounti’s new Asian Style Chicken Lettuce Wrap Kit featuring fully cooked, white meat chicken, mushrooms, carrots and green onions in a tangy stir fry sauce, represents the Company’s entry into the ‘Heat and Eat’ category.
The Company ended the quarter with cash, cash equivalents and restricted cash of $24.9 million and approximately $29.1 million of undrawn capacity on its credit facility with Cargill Financial Services International, Inc. Local Bounti had approximately 103.7 million shares outstanding as of December 31, 2022, and had an additional 11.5 million warrants outstanding and approximately 9.5 million restricted stock units outstanding. As of December 31, 2022, including these warrants and restricted stock units, the Company had a fully diluted share count of approximately 124.7 million shares outstanding.
Secures Additional Financing to Support Growth
Today, the Company secured up to $145 million of additional financing from two sources to support its current growth plans. The first component of this financing is an agreement to expand Local Bounti’s existing credit facility with Cargill by up to $110 million per the terms and conditions of the agreement to a total of $280 million. This expansion provides capital to fund construction at its facilities in Georgia, Texas and Washington. The second component of the financing is an agreement with an internally managed net-lease real estate investment trust for the sale-leaseback of Local Bounti’s two facilities located in California for approximately $35 million. Additional details regarding the terms of these agreements can be found in the concurrent press release issued this morning and in the Company’s Form 10-K for the year ended December 31, 2022 to be filed later this week. Following this additional amendment and the closing of the sale-leaseback transaction, which is subject to customary closing conditions and is expected in the second quarter of 2023, the Company expects to add $50 million to its balance sheet for use in its operations. Additionally, the Company has also received term sheets from a licensed United States Department of Agriculture (USDA) lender that the Company intends to utilize in due course for its Washington and Texas facilities, which is expected to reduce the Company’s use of construction financing by approximately $80 million and lower its cost of capital.
Management is providing its full year 2023 sales guidance of $34 to $40 million, which approximates its expected production from its Montana, California and Georgia (Phase 1-A and 1-B) facilities, but excludes the expected future positive impact from additional capacity following its Stack implementation at the Georgia facility.
About Local Bounti
Local Bounti is redefining indoor farming with an innovative method – its proprietary Stack & Flow Technology™ – that significantly improves crop turns, increases output and improves unit economics. Local Bounti operates advanced indoor growing facilities across the United States, servicing over 10,000 retail doors with its two brands: Local Bounti® and Pete’s®. Local Bounti grows healthy food utilizing a hybrid approach that integrates the best attributes of controlled environment agriculture with natural elements. Local Bounti’s sustainable growing methods are better for the planet, using 90% less land and 90% less water than conventional farming methods. With a mission to ‘bring our farm to your kitchen in the fewest food miles possible,’ Local Bounti’s food is fresher, more nutritious, and lasts longer than traditional agriculture. To find out more, visit localbounti.com or follow Local Bounti on LinkedIn for the latest news and developments.
Looking For The Cheapest Cannabis Stocks (Transcript)
transcript from the podcast. Interview with Alan Brochstein who has participated in CEAD conference calls in the past. Below is the portion of the podcast that mentions CEAD...
RS: Yeah, it's all relative, it's all relative. So speaking about, operational or striving for operational excellence? Do you see share repurchases coming anytime soon to the industry?
AB: No, not, not anytime soon, I think, so when you talk about the industry, I should be careful. The industry is bigger than the MSOs, which we seem to be talking about. And so there are some companies that have a lot of cash. But the ones I'm thinking of, they're not. And their stocks are cheap, but they're like one stock. I'm not going to say it because it's against Seeking Alpha's rules. I wrote a blog on it. I originally written that as an article, but this company is trading on the NASDAQ. And it's really cheap, but I don't think they can buy their shares back because the market cap is so low, and they need to get better liquidity. So buying share back…
RS: You can talk about them on this podcast.
AB: So CEA Industries (NASDAQ:CEAD). And people can read my blog about it. The stock went down a lot after I wrote it in December. And now it's right back to where I wrote it. I just added to it a little bit lower than now. But I love their valuation. And I just wrote a piece for my records on why I still like it. But so that's an example of one that could, but for the most part, capital is tight right now. The industry is not doing well right now. And when I say the industry, I mean not only MSOs, but we're talking about ancillaries, which were really cheap.
later in the podcast...
So like CEA that I mentioned earlier, no debt, lots of cash. Cash -- trading below cash is a good deal, I think. But it doesn't necessarily work out all the time. It may not be the best deal...
Third Q bookings appeared to be negligible. RSX Enterprises, founded a year and a half ago by a board member, has not delivered on the 18 month sales cycle outlined previously.
Third Q booking conversions were favorable. However, no sales entering pipeline in third q is alarming. 4th Q needs to show massive improvement or more dilution will follow.
Only hope is this from conference call transcript:
In October, we signed a contract with one of Merida's Connecticut-based clients to provide a suite of HVA systems that include our EnviroPro Air Handlers as well as heat recovery fan coils, dehumidifiers and circulating fans. Our partnership with Merida has quickly materialized with new business, and we look forward to continue growing this relationship as it presents a high-quality, high conversion sales channel for our business.
Been in and out of Surna for years, but this time I'm out for good. Lost faith in management. No more following from me. Good luck to all.
On the cusp of being delisted from the Nasdaq, how do we feel about the Q3 results?
242 followers on this thread have been silent since the uplisting back in February. Please weigh in on how you feel about the last 3-4 quarters.
2022 Revenue to date is 9M+, no major contracts, several partnerships but nothing but lackluster sales. The company has been an embarrassment since the admin change back in early 2018 ... watching the valuation of SRNA deplete to less than a penny (pre-split).
What happened to diversifying the tech into the urban farming future, obviously embraced strategically when SRNA transitioned to CEA...??
The execs have failed to act on leveraging their growth, having 20M + in the bank, and (thankfully) no debt. They are months behind the 8-ball.
Supply chain issues continue to be an excuse and slow progress on expanding into vertical (non-canabis) farming continues, which is the future, with eco-aggressive energy/water dynamics in play. Expansion into Mexico, Canada, overseas regardless of the roadblocks?? They augmented their sales staff but have not yet delivered on basic growth.
Carrier, Trane and others would seize on their tech, if the prevailing shadow of fed status vanished but that's not happening for another year or so. In the interim, they must lead the charge, be the innovator and make themselves the leader. Highly unlikely unless someone sees something we all don't.
A new admin needs to take over this company and kick to the curb the entire board. No vision, no initiative, no value, and most importantly no desire to win.
I am equally disgusted with them and share your same thoughts. I am wondering if the partnership they announced today could lead to them being bought out via a tuck-in acquisition. EQUOVA did two of those last year. I just have no idea how good or bad that is for long shareholders who were here pre devastating RS.
2 months!!! Radio silence since mid-August. No postings for over 2 months amongst what use to be a very active thread. Odd wouldn't one think??
And what happened to the 2-3 followers who would always post "Accumulate and Hold"...they have suddenly vanished as well.. Hmmm.
Quite disappointing to see this stock tank since going legit on the big boy board. One thing for sure if you're playing the short game, Surna delivers.
Confidential contract signings, no mergers/acquistions, no substantial market play, no positive activity with the (alleged) cash on hand...nothing but radio silence. One would hope to have faith in this little train that could... but after 8 months of sputtering to a level that equals less than a cent of worth, pre-Nasdaq, does little to restore faith in a company that deserves to be purged of it's incompetence.
Yes, everyone at CEAD should be replaced. The apparent NEW Sales staff & execs after 8 months of favorable cash flow have not generated barely enough productivity to satisfy the spend on their salaries. Someone posted back in the summer hearing a merger rumor pending.
Not so fast. There's more bad news to come...I'm sure.
See no reason for spike. Watch.
Yeah? Is this dogsh1t being acquired, or acquiring some more catsh1t to wrap itself in, and rebrand as the next best thing?
424B4 filed today.
More shares hitting the market.
Ironically filed in tandem after 4 dys of Conventions, and a slight non-institutional buying spurt today.
Any insight/projections on this raise and the status of Surna moving forward, allegedly with a robust cash surplus..???
Here's your 74mm volume answer:
So did Virtu CEO Doug Cifu just say they can make infinite shares?— Kory (@Kory_Corner) June 9, 2022
You said you filled an order for XYZ Stock for 1000 shares, & only 200 on NASDAQ…
Where did the other 800 come from? Synthetic? Liquidity fairy? Make it make sense! Make it LEGALLY make sense. #AMC #GME pic.twitter.com/R8xeyBq4mI
"Liquidity Fairy" courtesy of Virtu & Citadel.
See Virtu CEO Doug Cifu.
I was looking at the same thing. Did a large number of shares hit the market? I sure like the price if they did. Anybody have an explanation?
Yes, seems to be eventual, possible dilution:
"We are registering 532,688 Public Warrants, 170,382 Pre-Funded Warrants, and 710,890 shares of Common Stock, including the shares of Common Stock that may be issued upon exercise of the Warrants if the Warrants are exercised for possible sale by the Selling Securityholder."
Did you read it? They are not selling more shares, a warrant holder is offering their own warrants through an S-1 on behalf of CEAD. Those shares and warrants already exist.
S1 Filed = more dilution.
Reverse stock splits hardly ever work. Look at GE now. They need to be at 112 to be even at the time of split. Now it is sitting at 68.
These crooks at CEA raped the shareholders and got paid and it sill wasn't enough.
It's not just Tony.
It's likely at this point, that it's being thrashed by background forces, as per the link I posted. All this horseshyte of Wall Street is being uncovered in real time.
And... well... yeah, Tony is an idiot for setting the stage. Or maybe it was created on purpose.
On May 12th I predicted this stock would drop below a dollar in 10 dys.
Sorry, but I missed it by one day.
Presplit the current low (.95) would be equal to .005
Half a penny...!!!
Truly embarrassing and unacceptable.
More explanation on why it is so concerning to be a part of a company like Surna.
I could only hope that .7CentTony has knowledge of, and how to navigate this type of shenanigans -- as he went to Harvard. /s
Looks like they might have changed their minds...
8 new Institutional investors filed their 13F-HR today ...totaling an aggregate of 1.7M shares in their accumulative holdings.
The big boys are at the table!!
C.M.B.S. is it's own house of cards right now. Incredible amounts of overbuilding, and speculation on top of speculation.
I DO HOPE you are correct, but seeing and reading everything I have, over the past 15 months, leads me to believe the US house of cards is taller and fatter than most people can or will believe... cause, you know, that's what the news is for: to make it all better... until it's not.
Even if 1 Cent & Co have good intentions, they may get swept up in the big collapse before they gain any momentum... hence, no one to build for.
I agree with your general economic out look, however…
For who are they going to build? Maybe the exponentially growing indoor ag/ vertical farming market where they can produce food all year round, not to mention cannabis growers.
Yes, they need to execute better, and considering where Surna was vs now, it’s clear management is not malicious and actually wants to continue improving and growing the business.
It’s also pretty easy to spot insider enrichment and milking a company for whatever cash they have. So when it’s obvious let me know and we can file a class action.