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The return to profitability is important. Most penny stocks executing reverse splits face burn rates that are eating up cash reserves. (That has been the case with previous Surna capital raise initiatives.) Surna is now well positioned to use stock as currency as it adds top line revenue thru acquisition.
I also noticed Groadvisors.com has added a new line of equipment. Bud Trimmers.
Surna Reports Second Highest Revenue in its History and Return to Profitability in Preliminary Second Quarter Results
July 28, 2021
Revenue increased 168% in the Second Quarter Year Over Year and 91% over First Quarter, Adjusted Net Income up 174%
Boulder, Colorado, July 28, 2021 (GLOBE NEWSWIRE) -- Surna Inc. (OTCQB: SRNA), operating as Surna Cultivation Technologies, a leader in controlled environment agriculture (CEA) systems engineering and technologies, announced today its preliminary second quarter 2021 revenue and net income results.
Q2 2021 revenue was approximately $4.5 million, the second best in Company history and an increase of 168% over the same period last year. On a sequential quarterly basis in 2021, revenue increased by 91% over Q1 2021.
Adjusted Net Income1 was approximately $353,000 for Q2 2021, which represents a 174% increase over the same period last year.
“We are excited to report the second highest revenue in our company’s history and a return to profitability for Q2 2021 despite the challenges of operating in the pandemic environment over the past year,” stated Tony McDonald, Surna’s Chairman and CEO. “In August, Surna will celebrate its 15th year in business and we are pleased to see continued growth of the company and to be able to report these impressive financial results after reporting record Q1 bookings in April. We have seen increased sales traction this year and we are well positioned to extend our leadership position as we continue to expand our product and service offerings.”
Q2 2021’s performance was driven by the Company’s ability to deliver on a substantial backlog and by its continued success in launching new products and services as detailed in the updated strategy revealed in May.
[1] Adjusted net income (loss), a Non-GAAP metric, is defined as GAAP net income (loss), after adjustment for non-cash equity compensation expense, other non-cash equity expense, and depreciation expense. The Company considers this a key financial metric as we focus on achieving breakeven or better operating cash flow. For the three months ended June 30, 2021, adjusted net income is calculated as follows:
Calculation of Adjusted Net Income at June 30, 2021:
(in thousands of US Dollars)
GAAP Net Income: $265
Non-Cash Add Backs:
Stock Based Compensation 71
Depreciation & Amortization 17
Total Non-Cash Add-Backs: 88
Adjusted Net Income: $353
About Surna Inc.
from the Surna website...
https://www.sec.gov/Archives/edgar/data/1482541/000149315221017673/form8-k.htm
Item 5.07 — Submission of Matters to a Vote of Security Holders
The 2021 Annual Meeting of Stockholders (the “Annual Meeting”) of Surna Inc. (the “Company”) was held on July 22, 2021. At the Annual Meeting, the Company’s stockholders:
? Elected three incumbent directors to serve until the next annual meeting of the Company’s stockholders or until their respective successors have been duly elected and qualified;
? Ratified Sadler, Gibb & Associates as the reviewing independent accountants for the Company for fiscal year 2021;
? Approved the Company’s 2021 Performance Equity Plan;
? Approved, on an advisory basis, to hold a vote on “Say on Pay”; and
? Approved, on an advisory basis, the three-year frequency of an advisory vote on executive compensation.
The number of votes cast for, against or withheld and the number of abstentions and broker non-votes with respect to each Proposal is set forth below.
Proposal 1 Shares For Shares Withheld Broker Non- Votes
Anthony K. McDonald 128,044,722 12,717,065 37,279,254
James R. Shipley 128,316,722 12,445,065 37,279,254
Nicholas J. Etten 128,399,251 12,362,536 37,279,254
Proposal 2 Shares For Shares Against Shares Abstaining
Ratification of the appointment of Sadler, Gibb & Associates, L.L.C. as our independent registered public accounting firm for the fiscal year ending December 31, 2021. 173,295,966 1,978,655 2,766,420
Proposal 3 Shares For Shares Against Shares Abstaining Broker Non-Votes
Approve of an amendment to the Company’s Articles of Incorporation to increase the number of authorized shares to Eight Hundred Fifty Million (850,000,000) of which Seven Hundred Million (700,000,000) shares will be common stock, with a par value of $0.00001 per share, and One Hundred Fifty Million (150,000,000) shares will be preferred stock, with a par value of $0.00001 per share. 137,209,470 36,404,258 1,185,877 3,241,436
Proposal 4 Shares For Shares Against Shares Abstaining Broker Non-Votes
Approve of an amendment to the Company’s Articles of Incorporation to change the rights, preferences, limitations and terms of the Company’s preferred stock to allow the Company to redeem the outstanding shares of the preferred stock by issuance of one share of the Company’s common stock for each one hundred shares of preferred stock being redeemed by the Company. 124,721,353 14,036,560 2,003,874 37,279,254
The class of preferred stock outstanding voted with the common stock and also separately as a class. The results above include the votes of the common stock and the preferred stock. The separate class vote of the preferred stock was as follows: Shares For: 35,187,609, Shares Against 2,981,722, and Shares Abstaining: -0-.
Proposal 5 Shares For Shares Against Shares Abstaining Broker Non-Votes
Approve an amendment to the Company’s Articles of Incorporation to change the rights of the common stock to eliminate any right of stockholder action by written consent. 114,715,343 23,510,875 2,535,569 37,279,254
Proposal 6 Shares For Shares Against Shares Abstaining Broker Non-Votes
Approve an amendment to the Company’s Articles of Incorporation to add a provision for the call of any special or annual meeting to be the right of the board acting together by a majority of the board, any two directors acting together, the chief executive officer or president of the Company or any one or more stockholders together holding at least twenty-five percent (25%) of the voting power of the capital stock issued and outstanding and entitled to vote thereat. 124,765,134 13,914,569 2,082,084 37,279,254
Proposal 7 Shares For Shares Against Shares Abstaining Broker Non-Votes
Approve an amendment to the Company’s Articles of Incorporation to permit the Board, without requiring the approval of the stockholders and without correspondingly decreasing the number of authorized shares of the class, to decrease the number of issued and outstanding shares of common stock or preferred stock, so long as the decrease is applied proportionally to any class of stock so decreased. 114,088,300 24,467,885 2,205,602 37,279,254
Proposal 8 Shares For Shares Against Shares Abstaining Broker Non-Votes
Approve the 2021 Performance Equity Plan of the Company. 123,780,895 11,539,601 5,441,291 37,279,254
Proposal 9 Shares For Shares Against Shares Abstaining Broker Non-Votes
Approve the Board, at its discretion, at any time until December 31, 2021, (i) to effect a reverse stock split of the common stock with a ratio not less than two-for-one but not greater than one hundred-fifty-for-one and (ii) in conjunction therewith to amend the Articles of Incorporation to decrease the authorized number of shares of common stock and preferred stock to any amount less than 700,000,000 but not less than 150,000,000 shares of common stock and to any amount less than 150,000,000 but not less than 25,000,000 shares of preferred stock. 108,533,863 31,755,925 471,999 37,279,254
Proposal 10 Shares For Shares Against Shares Abstaining Broker Non-Votes
To obtain an advisory vote on the executive pay, under the “Say on Pay” proxy requirements. 115,843,933 18,031,989 6,885,865 37,279,254
Proposal 11 Shares For One Year Shares For Two Years Shares for Three Years Shares Abstaining Broker Non-Votes
To obtain an advisory vote on the frequency of the “Say on Pay” advisory vote every three years. 18,138,832 7,615,297 98,455,245 16,552,413 37,279,254
Proposal 12 Shares For Shares Against Shares Abstaining
Broker
Non-Votes
To an adjournment of the meeting of stockholders 153,472,724 16,990,082 4,336,799 3,241,436
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Date: July 23, 2021 SURNA INC.
By /s/ Anthony K. McDonald
Anthony K. McDonald
President and Chief Executive Officer
Thanks for the information, Avinco. Surna traded very mildly today. Perhaps the negative sentiment for the reverse split is already baked in to the share price.
Regarding acquisition targets, I have long suspected Groadvisors.com to be the matchmaking conduit. That website had a blog in mid-May and no updates since. Is this a Quiet Period? Randy Shipley would lose his status as an Independant Director. Biography below.
If that is the case, this build could happen very quickly. 3Q earnings report due no later than Mon Aug 16th.
Randy Shipley
Independent Director
Randy Shipley is the Chief Strategy Officer of GroAdvisor and also serves as Vice-President of Sales and as a member of the executive leadership team at VividGro. GroAdvisor provides supply chain management and solutions to cultivation operations through a cooperative of industry leaders in environmental services, lighting, building structures and green technologies that assists cultivators in fast-start build-outs with maximum ROI.
A cannabis industry veteran, Randy turned in 2014 towards what he believes is the largest growth industry opportunity in the world – the cannabis industry. He was a founder of the Marijuana Investor Summit, held appropriately on 4/20/2015 in Denver where the first CannaPitch was held before an audience of 1000+. This helped launch other summits and expos each featuring educational workshops including the World of Cannabis in Las Vegas, the California Cannabis Business Expo, and the Cannabis Capital Summit in Las Vegas. He successfully exited this business with the sale of his cannabis businesses to MJIC Inc where he served as Chairman and President.
Previously, Randy was an officer and chief revenue officer with Carrier Access Corporation (CACS) which went public in 1998 on the NASDAQ leading the company in market growth from $68M to a high of $2.2B in twelve months where CACS was recognized as the fastest growing IPO on the NASDAQ.
Prior to Carrier Access, Randy worked at Williams Companies in their telecommunications divisions where he launched and participated in multiple product launches that exceeded more than $100M in revenues including their carrier, Frame Relay, and ATM services while leading their executive accounts team that provided services to Fortune 100 companies including IBM, Comdisco, Compuserve and others.
Press release. No mention of Shareholder meeting.
Surna Inc, (OTCMKTS: SRNA) Expands its Line of Curated HVACD Family Products with the Introduction of EnviroPro™ Air Handler
Surna Cultivation Technologies Introduces EnviroPro™ Air Handling Product Family
Wed, July 14, 2021, 7:00 AM·3 min read
Expands line of curated HVACD products to add versatility including DX systems, additional energy efficiency selections, and budget-friendly options
Boulder, Colorado, July 14, 2021 (GLOBE NEWSWIRE) -- Surna Inc. (OTCQB: SRNA), operating as Surna Cultivation Technologies, announces the expansion of its air handler product family.
“To meet the climate control needs of our growing customer base, we have launched our EnviroPro™ air handler product family. These new products are part of our strategy to add versatility to our product line enabling us to be a true agnostic provider of a carefully curated range of products,” said Troy Rippe, Surna’s Vice President of Operations and Development. “This versatility allows us to offer our customers solutions that fit their unique needs rather than making them conform to one specific technology as some of our competitors do.”
The EnviroPro family of air handlers includes:
EnviroPro Packaged DX Air Handler (SRTU) - this packaged, hot gas reheat system provides both cooling and dehumidification, eliminating the need for standalone dehumidification units in the space. An economical choice for growers on a budget, the SRTU is a relatively low-priced option for meeting the unique cooling, heating and dehumidification needs of controlled environment agriculture. The SRTU includes a DDC controller and all sensors required to operate as a standalone system including remote monitoring, setpoint management, and data trending. Optionally, the unit can be integrated into a central control system, such as Surna’s SentryIQ® control system.
EnviroPro Custom DX Air Handler (SCAHU-DX) – these customizable air handling units are designed with deeper coils, superior sensible heat ratios and EC motors. Choose from a variety of energy efficiency options for cooling, heating, and dehumidifying, for a multitude of possibilities to minimize energy use and maximize ROI.
EnviroPro Custom Chilled Water Air Handler (SCAHU-CW) – this unit uses hydronic cooling to remove heat from the space utilizing chilled water as the heat exchange medium. Hydronic cooling systems are completely closed loop, conserving water, eliminating the need for ductwork, and minimizing biosecurity risks.
EnviroPro Mini Air Handler (SHAU) - with 4-row or 6-row cooling, this indoor air handler system can be designed with multiple units in sealed environments to provide redundancy and inherent odor control. These units are suitable as part of both ducted and ductless systems. The SHAU acts as the connection between the facility’s chillers and the air within grow rooms, simultaneously cooling and dehumidifying the space.
About Surna
Surna Cultivation Technologies Announces R. Brian Knaley as New CFO
Surna Inc
Wed, June 23, 2021, 5:09 PM·3 min read
SRNA
+2.52%
Senior Finance Executive & CPA, NYSE & Nasdaq Company Veteran to Lead Capital Markets and Finance Strategy
Boulder, Colorado, June 23, 2021 (GLOBE NEWSWIRE) -- Surna Inc. (the “Company”) (OTCQB: SRNA), operating as Surna Cultivation Technologies, a leader in controlled environment agriculture (CEA) systems engineering and technologies, announced today the appointment of R. Brian Knaley as Chief Financial Officer and Treasurer of the Company, effective June 28, 2021. Mr. Knaley is a seasoned financial executive with over 25 years of financial leadership including being a two-time public company CFO.
“Our Board of Directors and I are thrilled that Brian is joining our executive team to help lead our strategic growth initiatives. Brian brings a strong track record of driving results,” said Tony McDonald, Surna’s Chairman and CEO. “We are confident that Brian’s previous experience as a public company CFO will strengthen our executive team and enhance our engagement with investors and the financial community as we implement the aggressive growth strategy we announced in April.”
Biographical Details
Mr. Knaley has extensive experience as a financial leader, having held a number of executive roles in public companies and driving a number of substantial changes to their business results and financial reporting compliance.
He was most recently the CFO for Proximo Medical, a start-up company that specializes in the commercialization of medical devices. As CFO, he provided strategic management of accounting and finance functions including financial control, cash maximization and tax and regulatory compliance.
Prior to Proximo, he served as Senior Vice President and Interim CFO of ViewRay, Inc., a global manufacturer of MRI-guided radiation therapy systems. At ViewRay he delivered strategic leadership for this publicly listed company.
Before ViewRay, Mr. Knaley served as CFO at ARC Group Worldwide, Inc,. a global manufacturer of precision metallurgic products and advanced 3D printing. Prior to ViewRay he was Vice President and Corporate Controller of Spectranetics Corp., a vascular intervention device maker, where he supported the executive team in selling the company to Philips Holding USA, Inc.
Other positions Mr. Knaley has previously held include: Corporate Controller for Arcelormittal USA, a steel and mining company and Vice President Finance/Audit Manager for Caterpillar, Inc., a Fortune 100 corporation that designs, develops, engineers, manufactures, markets, and sells machinery, engines, financial products, and insurance.
Mr. Knaley holds a BA in Accounting from Thomas More College and is a Certified Public Accountant licensed in Ohio.
CEO Tony McDonald added “We are delighted to welcome Brian Knaley to the Surna executive management team. We believe Brian will make immediate contributions to the Company in the areas of strategic analysis, financial reporting, operations, and other areas. We are equally confident that Brian will provide the executive leadership necessary as the Company improves its operating infrastructure and internal processes and controls, to support the Company’s anticipated growth.”
Surna Cultivation Technologies Introduces Preventative Maintenance Services
June 22, 2021 09:15 ET | Source: Surna Inc
Adds Reliable, Local Climate Control Maintenance to Service Offerings
Boulder, Colorado, June 22, 2021 (GLOBE NEWSWIRE) -- Surna Inc. (OTCQB: SRNA), operating as Surna Cultivation Technologies, introduces the addition of Preventative Maintenance to its services portfolio.
“We continue to deliver on our promises to our customers and shareholders. Surna Cultivation Technologies now offers preventative maintenance services that will help our customers ensure their HVACD systems are professionally maintained and delivering optimal performance, while providing Surna with the recurring revenue our shareholders expect,” said Tony McDonald, Surna Cultivation Technologies Chairman and CEO. “This service also helps keep us close to our clients to ensure a long-term relationship with them. We’ll be there to help solve problems or know when they plan to expand.”
In addition to being a substantial investment, HVACD systems are one of the most vital components in the cultivation operation. Maintenance programs are critical to the longevity and energy efficiency of these systems. Without proper HVACD system maintenance, energy bills increase, and equipment can prematurely fail, resulting in unnecessary repair expense, suffering plants and potentially even catastrophic crop loss.
To respond to this need, and in partnership with a contractor network certified in the US and Canada, Surna’s team of design and application experts help to precisely dial in the cultivation facilities’ environment while maintaining their systems. Surna’s HVACD facility maintenance services are customized to meet the goals of each individual facility and owner. Surna Cultivation Technologies can manage maintenance tasks from the most basic to the most complex. Each service plan begins with a discussion of the customer’s needs, then moves on to a review of their facility plans and a site walk through. This results in a detailed maintenance plan, in line with the manufacturer’s and engineer’s requirements, to ensure each system continues operating at peak performance.
As part of each service plan, the service team conducts maintenance tasks to ensure peak performance, as well as to provide an overall assessment of each piece of equipment to identify potential problems before they become emergencies.
If you want to learn more about Surna Cultivation Technologies Preventative Maintenance Services, please visit us at www.surna.com/installation-maintenance-services.
About Surna
Surna Inc. (www.surna.com), operating under the tradename Surna Cultivation Technologies, designs, engineers and sells cultivation technologies for controlled environment agriculture including: (i) liquid-based process cooling systems and other climate control systems, (ii) air handling equipment and systems, (iii) a full-service engineering package for designing and engineering commercial scale thermodynamic systems specific to cannabis cultivation facilities, and (iv) automation and control devices, systems and technologies used for environmental, lighting and climate control.
Headquartered in Boulder, Colorado, we leverage our experience to bring value-added climate control solutions to our customers that help improve their overall crop quality and yield, optimize energy and water efficiency, and satisfy the evolving state and local codes, permitting and regulatory requirements. Although many of our customers do, we neither produce nor sell cannabis.
Contact:
Jamie English
Vice President, Marketing Communications
jamie.english@surna.com
303.993.5271
Surna is a very dry play.
McDonald has positioned Surna for rapid growth but you would never know it. The stated 2021 goal of $20 million in sales revenue seems less than aggressive in a market that is seemingly burgeoning. Is the purpose to exceed expectations or build expectations?
Surna is adding equipment to its HVAC lineup. This includes an added category - HVAC(D)ehumidication) - thru a co-brand partnership with Anden. Further, Surna has lined up a sales team with a Board Members' backing (who is "Chief Strategy Officer of GroAdvisor").
Yet, here we sit with the "reverse split blues".
Mr. McDonald has been clear about his vision from the get-go which included a reverse split. At this point, however, some further clarity on "intent" would be helpful.
The fact is current shareholders are left vulnerable to the "whim" of the B.O.D. when reverse splits are implemented.
Item 8.01 Other Events.
On May 28, 2021, at 9:00 AM Mountain Time, Surna Inc. (“Company”) called the annual meeting to order, there being a quorum of
52.7% of the shareholders eligible to vote at the annual meeting. The voting was reviewed, and it was determined that there were not a
sufficient number of votes in favor of several proposals requiring approval by a majority of the issued and outstanding shares eligible to
vote on the matters at the meeting. Although the votes received were generally in favor of the proposals but not sufficient in number to
provide approval, the Company adjourned the annual meeting so as to be able to continue to solicit votes on these proposals. The
proposal to adjourn the meeting was approved by 95.6%, representing a majority of the votes cast at the annual meeting in person or by
proxy.
The new date of the adjourned annual meeting will be July 22, 2021, 9:00 AM Mountain Time. The record date remains the same, at
April 1, 2021.
The Company will continue to seek approval of the following proposals discussed in the proxy statement dated April 7, 2021: (i) the
increase in the authorized number of shares, (ii) the reverse split of the shares of common stock, (iii) the changes to the preferred stock
so as to be able to cause the outstanding Series A Preferred Stock to be converted to common shares, and (iv) the adjustments to the
certificate of incorporation. Shareholders are encouraged to refer to the proxy statement for a full discussion of the proposals that have
been presented to the shareholders for their consideration.
The Company’s board continues to recommend a vote in favor of the proposals presented in the proxy statement for the reasons
described in the proxy statement, including the need to have sufficient authorized common stock in order to permit the future issuance
of common stock to support the growth and expansion of the Company’s business, including future acquisitions, and the need to have
authority to adjust the capitalization to eliminate the preferred stock and effect a reverse split so as to be able to seek listing on Nasdaq,
among other things.
The biggest potential catalysts for Ayr and Cresco, though, would benefit all marijuana stocks. I'm referring to the prospects for significant cannabis reform at the federal level in the U.S. Legislative efforts are under way to remove restrictions that limit cannabis companies from accessing traditional banking services and to remove marijuana from the Controlled Substances Act.
The latter legislation wouldn't legalize marijuana at the federal level. However, if enacted into law it would mean that marijuana is no longer federally illegal. That would pave the way for Ayr and Cresco to list their shares on a major U.S. stock exchange -- a move that would almost certainly cause the stocks to skyrocket.
2 Stocks That Could Realistically Double in the Second Half of 2021
They share several things in common, including potential catalysts.
Keith Speights
Jun 13, 2021 at 6:04AM
Most investors would be pleased as punch if their stocks doubled within five years. That's the kind of return that could lead to game-changing wealth.
But what if you could find stocks that could deliver 100% or more gains in a much shorter period of time? Such stocks with that potential do exist. I'd put Ayr Wellness (OTC:AYRW.F) and Cresco Labs (OTC:CRLBF) near the top of the list of possible contenders. Here's why these two stocks could realistically double in the second half of 2021.
Common denominators
Ayr and Cresco share several common denominators. Most importantly, they're both U.S. multi-state cannabis operators. Ayr currently operates in six states, while Cresco has operations in 10 states.
The two marijuana stocks have performed pretty well so far this year, but they're a long way from delivering 100% gains. That shouldn't be a problem, though. Both Ayr and Cresco more than doubled in the second half of 2020.
Neither stock would have been likely to achieve such impressive returns without also generating strong sales growth. The momentum from last year for Ayr and Cresco has continued into 2021. Ayr reported 74% year-over-year revenue growth in its first quarter. Cresco also delivered better-than-expected Q1 results with revenue soaring nearly 169% year over year.
There are other U.S. pot stocks that are also growing fast. Why single out Ayr and Cresco as the most likely to double in the second half of 2021? Valuation. The shares of both Ayr and Cresco currently trade at price-to-sales multiples that are well below their peers.
Potential catalysts
I fully expect that Ayr and Cresco will continue to benefit from the expanding cannabis markets where they already have established operations. However, that probably won't be enough to fuel 100% gains over the next six months or so. The good news is that there are potential catalysts that could enable both of these stocks to double during the period.
For one thing, Ayr and Cresco should see turbocharged growth thanks to key acquisitions. Ayr recently closed on its purchase of Liberty Health Sciences, a deal that gives the company the fourth-biggest retail footprint in Florida's medical cannabis market. It expects to finalize an acquisition in the fast-growing New Jersey market this summer.
Likewise, Cresco is now competing in the Florida medical cannabis market thanks to its April acquisition of Bluma Wellness. The company should wrap up its buyout of Massachusetts-based Cultivate in the fourth quarter of this year.
The biggest potential catalysts for Ayr and Cresco, though, would benefit all marijuana stocks. I'm referring to the prospects for significant cannabis reform at the federal level in the U.S. Legislative efforts are under way to remove restrictions that limit cannabis companies from accessing traditional banking services and to remove marijuana from the Controlled Substances Act.
The latter legislation wouldn't legalize marijuana at the federal level. However, if enacted into law it would mean that marijuana is no longer federally illegal. That would pave the way for Ayr and Cresco to list their shares on a major U.S. stock exchange -- a move that would almost certainly cause the stocks to skyrocket.
No slam dunk
Note that I'm not predicting that Ayr or Cresco stocks will for sure double by the end of this year. There are far too many things that could go wrong for me to step out on that limb. However, while it's by no means a slam dunk, I think there is a realistic path for both stocks to double in the second half of 2021.
Ayr Wellness CEO Jonathan Sandelman recently stated in an interview with my Motley Fool colleague Eric Volkman, "Public sentiment is clearly on the side of cannabis legalization, and state and local governments will continue to follow, even if the federal government takes a while to figure out how to approach federal cannabis legalization."
I think Sandelman is right. Even if Ayrs and Cresco stocks don't double this year, both should be able to deliver tremendous gains for investors over the long run.
https://technical420.com/cannabis-article/surna-inc-is-trading-at-a-steep-discount-based-on-an-uptick-in-financial-performance-in-2021/
Surna Inc. Is Trading At A Steep Discount Based On An Uptick In Financial Performance In 2021
STOCKS Jun 7, 2021 • 7:15 AM EDT
3 MIN READ • BY MICHAEL BERGER
SHARE Share - Facebook Share - Twitter
A few weeks ago, we highlighted Surna Inc. (OTCQB: SRNA) as a leading play on the controlled environment agriculture (CEA) technology market and believe that it has a favorable risk-reward profile.
Last month, Surna reported first quarter financial results that showed impressive growth and we are favorable on the amount of revenue that can be generated by its significant backlog of projects. Some of the important metrics from the earnings report include:
Surna generated $2.4 million of revenue which represents a 31% increase when compared to the same period last year
When compared to the prior quarter, the company’s cash position improved by nearly $1 million
The company entered approx. $5.5 million of new sales contracts
Surna’s backlog grew to $11.6 million, the second highest in its history
The quarter was impacted by production and shipping delays from certain suppliers and this issue is expected to be transitory
The business has attractive growth prospects, and it plans to focus on entering new markets, adding new products and services
Surna’s new organic growth strategy and partnership with RSX Enterprises are expected to serve as a catalyst for growth
Surna expects the expanded offerings will improve customer success by providing key infrastructure technologies that are required for a successful operation. The strategy is expected to support the customer acquisition process and we are favorable on how this can impact the growth of the business in the near and long-term.
Trading for a Discount on a Comparative Basis
Although Surna reported record numbers on several important metrics and strengthened its balance sheet, the market’s initial optimism has faded, and we believe that Wall Street is missing out on something significant with the business. Going forward, Surna is well positioned to record strong growth in future quarters, and we believe the opportunity is flying under the radar.
At current levels, Surna’s market capitalization is below $20 million, and we believe that it is trading at a significant discount to other companies that are levered to the ancillary side of the cannabis industry. Two comparable operators to Surna are GrowGeneration Corporation (Nasdaq: GRWG) and urban-gro, Inc. (Nasdaq: UGRO) which are valued at $2.5 billion and $100 million, respectively.
Going forward, Surna plans to capitalize on non-cannabis industries, and we believe these substantially increases the size of its total addressable market (TAM). When compared to GrowGeneration and urban-gro, the company is trading for a major discount, and we believe that Surna has considerable upside potential.
If you are interested in learning more about Surna, please send an email to support@technical420.com with the subject “Surna” to be added to our distribution list.
For the fastest access to data on Surna, you can sign up for our free newsletter!
Pursuant to an agreement between StoneBridge Partners LLC and Surna Inc. (SRNA) we have been hired for a period of 180 days beginning April 12, 2021 and ending October 12, 2021 to publicly disseminate information about (SRNA) including on the Website and other media including Facebook and Twitter. We are being paid $7,000 per month (SRNA) for or were paid “0” shares of restricted common shares. We own zero shares of (SRNA), which we purchased in the open market. We plan to sell the “ZERO” shares of (SRNA) that we hold during the time the Website and/or Facebook and Twitter Information recommends that investors or visitors to the website purchase without further notice to you. We may buy or sell additional shares of (SRNA) in the open market at any time, including before, during or after the Website and Information, provide public dissemination of favorable Information.
https://finance.yahoo.com/news/surna-cultivation-technologies-introduces-high-131500373.html
Surna Cultivation Technologies Introduces High Efficiency EcoChill™ Heat Recovery Chiller
Surna Inc
Tue, June 8, 2021, 8:15 AM
Expands HVAC product line for controlled environment agriculture (CEA) with equipment that reduces energy consumption
Boulder, Colorado, June 08, 2021 (GLOBE NEWSWIRE) -- Surna Inc. (OTCQB: SRNA), operating as Surna Cultivation Technologies, introduces the addition of heat recovery chillers to its EcoChill™ product portfolio.
“Surna continues to add technological options to our product lines to meet the growing demands of indoor agriculture climates. We understand that one of the biggest challenges for our customers is to be more energy efficient and drive down operational costs. This new product is part of our strategy to respond to that challenge,” said Troy Rippe, Surna Cultivation Technologies Vice President of Operations and Development.
Two multi-state operators (MSOs), in an effort to drive down operational costs, recently installed the EcoChill heat recovery chillers. The first MSO is a 90,000 square foot facility in Illinois and the other is a 40,000 square foot facility in Ohio.
Because they produce both chilled and hot water simultaneously, EcoChill Heat Recovery Chillers can reduce the capacity requirements and energy consumption versus traditional 4-pipe chilled water systems. They are also modular, with the capability of each unit being installed inches apart. For easy maintenance, each unit can be serviced from the front of the unit or removed from the bank of chillers for servicing without disruption to the other units.
The EcoChill family of chillers also includes small tonnage chillers designed specifically for indoor cultivation applications, delivering benefits that other cooling systems cannot provide. Using a Surna Cultivation Technologies chilled water system with ductless fan coils eliminates ductwork and helps cultivators to seal their environment against outside contaminants.
If you want to learn more about Surna Cultivation Technologies full line of EcoChill chillers, please contact us at www.surna.com.
About Surna
Surna Inc. (www.surna.com), operating under the tradename, Surna Cultivation Technologies, designs, engineers and sells cultivation technologies for controlled environment agriculture including: (i) liquid-based process cooling systems and other climate control systems, (ii) air handling equipment and systems, (iii) a full-service engineering package for designing and engineering commercial scale thermodynamic systems specific to cannabis cultivation facilities, and (iv) automation and control devices, systems and technologies used for environmental, lighting and climate control.
Headquartered in Boulder, Colorado, we leverage our experience to bring value-added climate control solutions to our customers that help improve their overall crop quality and yield, optimize energy and water efficiency, and satisfy the evolving state and local codes, permitting and regulatory requirements. Although many of our customers do, we neither produce nor sell cannabis.
Contact:
Jamie English
Vice President, Marketing Communications
jamie.english@surna.com
303.993.5271
Item 8.01 Other Events.
On May 28, 2021, at 9:00 AM Mountain Time, Surna Inc. (“Company”) called the annual meeting to order, there being a quorum of 52.7% of the shareholders eligible to vote at the annual meeting. The voting was reviewed, and it was determined that there were not a sufficient number of votes in favor of several proposals requiring approval by a majority of the issued and outstanding shares eligible to vote on the matters at the meeting. Although the votes received were generally in favor of the proposals but not sufficient in number to provide approval, the Company adjourned the annual meeting so as to be able to continue to solicit votes on these proposals. The proposal to adjourn the meeting was approved by 95.6%, representing a majority of the votes cast at the annual meeting in person or by proxy.
The new date of the adjourned annual meeting will be July 22, 2021, 9:00 AM Mountain Time. The record date remains the same, at April 1, 2021.
The shareholder meeting is Friday...
I thought the share price might drift lower than it has. I’d like to see a favorable press release just prior to the meeting. Surna is due for another record sales contract.
Investor Letter posted to website.
http://filings.irdirect.net/data/1482541/000149315221011219/form8-k.pdf
Surna changes trade name
By DAN MIKA | BizWest Media/Daily Camera
May 11, 2021 at 5:14 p.m.
Surna Inc. (OTCMKTS: SRNA) said it would change its trade name alongside releasing its financial results for the first quarter of 2021.
The Boulder developer of climate-control systems for indoor cannabis growhouses reported $2.4 million in revenue and a net loss of $793,000, compared to revenues of $1.56 million and a loss of $938,000 in the first quarter of 2020.
It had $3.27 million in cash and cash equivalents on hand at the end of March.
Surna also said that it had signed $5.5 million in sales contracts, bringing its total backlog to $11.6 million, the second highest in the company’s history.
Zooming out: Access, equity and opportunity in climbing and beyond
“Unfortunately, our revenues and therefore gross margins were hampered by production and shipping delays from certain vendors, but we are confident that these will be caught up in Q2 and Q3 2021,” CEO Tony McDonald said in a statement.
The company also said that it would change its trade name to Surna Cultivation Technologies, as part of an effort to make it easier for new clients to find the company and add to its organic growth.
With $3,271,000 in cash - SRNA is worth $0.014 cents per share in CASH. That is 17% of share price.
I think the press release March 16th, prior to the shareholders meeting announcement, was most telling. Anden is a great fit with Surna. Their customer list will get Surna to places it has not pursued.
Surna Inc. Announces Strategic Partnership with Anden
Partnership provides immediate opportunities for high quality dehumidification to CEA
customers
Boulder, Colorado, March 16, 2021 –– Surna Inc. (OTCQB: SRNA) and Anden, two leaders in controlled
environment agriculture environments (CEA), today announced a new partnership designed to grow and enhance both
companies’ abilities to deliver world-class dehumidification to the industry.
Surna is a pioneer in the industry with a deep understanding of every aspect of cultivation facility design, not just the
HVACD and systems in which they specialize, allowing them to lend support from pre-design budgeting through
facility commissioning and at every step in between. Anden is a leader in the industry, leveraging the power of
innovative, purpose-built dehumidification equipment.
“We are excited to partner with Anden,” said Tony McDonald, Surna’s Chairman and CEO. “It’s clear that customers
in the CEA space are looking for high performance, affordable dehumidification for their facilities to thrive. With
Anden, we’re providing our customers with the reliability and quality they require for their dehumidification needs
no matter the size of the facility.”
“We are looking forward to partnering with Surna,” said Sean McCarthy, Anden’s General Manager. “Surna is a
leader in the industry and their unique and flexible approach to designing cultivation spaces is impressive. Their
mission in creating effective and efficient grow rooms aligns with our goal of manufacturing efficient equipment Built
for Grow. The Anden team is so excited to start working with Surna and we look forward to our future partnership
and upcoming opportunities.”
About Surna Inc.
Surna Inc. (www.surna.com) designs, engineers and sells cultivation technologies for controlled environment
agriculture including: (i) liquid-based process cooling systems and other climate control systems, (ii) air handling
equipment and systems, (iii) a full-service engineering package for designing and engineering commercial scale
thermodynamic systems, and (iv) automation and control devices, systems and technologies used for environmental,
lighting and climate control. Our customers include commercial growers in the U.S. and Canada as well as other
international locations, including those growers building new facilities and those expanding or retrofitting existing
facilities. Currently, our revenue stream is derived primarily from supplying our products, services and technologies
to commercial indoor and hybrid sealed greenhouse facilities ranging from several thousand to more than 100,000
square feet.
Headquartered in Boulder, Colorado, we leverage our experience in this space to bring value-added climate control
solutions to our customers that help improve their overall crop quality and yield, optimize energy and water efficiency,
and satisfy the evolving state and local codes, permitting and regulatory requirements.
Learn more at Surna Controlled Climate Systems.
About Anden
Anden is designed and built for professional cultivation with components proven to perform in the extreme
conditions of a grow room environment. With a complete lineup of grow-optimized dehumidifiers at capacities up to
710 pints per day, humidifiers, and precision controls, Anden has the environmental control solution for any size
facility to achieve desired humidity balance and maximum growth potential. From design and delivery to
installation, setup, and service, the Anden team is committed to the cultivator and here to help every step of the way.
Learn more at www.anden.com.
Surna Inc. Is Setting Itself Up For Major Growth Across All Of The Companies Business Units In 2021
STOCKS May 5, 2021 • 6:59 AM EDT
4 MIN READ • BY MICHAEL BERGER
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Earlier this week, Surna Inc. (SRNA) published a corporate update that provided important insight as it relates to the future growth of the platform.
During the last year, Surna has been executing on a multi-pronged growth strategy and has been reporting impressive growth. We consider Surna to be a turnaround story in the making and are favorable on how the management team has been growing the business.
We believe that Surna has taken a cost-effective approach to growth and are favorable to the recent change in strategy. A few of the most important aspects of the updated strategy include:
Surna plans to capitalize on additional industries (non-cannabis) with its proprietary products and services for the controlled environment agriculture (CEA) market. Specifically, the company is focused on the vertical farming market where it can easily apply its expertise and equipment offerings. During the first quarter of 2021, Surna announced it had entered into a contract with a non-cannabis CEA facility and we are favorable on this trend.
Another avenue for growth for Surna is through the launch of new products and services. The company will be expanding its service and product offerings to include key technologies like facility assessment, space and workflow planning, architectural services, lighting, benching, mechanical, electrical, water treatment, fertigation, maintenance services, and more.
Surna expects the expanded offerings will improve customer success by providing key infrastructure technologies that are required for a successful operation. The company will help the customer evaluate technical alternatives and will provide best-in-class products. The strategy is expected to support the customer acquisition process and we are favorable on the potential outcome for Surna.
We believe that the implementation of a comprehensive growth strategy is a major milestone for Surna. If the company can implement and execute on the strategy, we expect the business to record incremental revenue growth and believe the market underappreciated this aspect of the story.
As a result of the improvements to the range of products and services that are offered through Surna’s new growth strategy, the company has adopted the trade name of Surna Cultivation Technologies to more accurately reflect the structure of the business. The management team expects the new name to make the customer acquisition easier and we will monitor how the story advances from here.
At current levels, we find Surna’s risk-reward profile to be favorable and are bullish on the potential catalysts that it has for growth. Last month, the company reported preliminary first quarter booking results that exceeded our expectations and we believe the business is positioned to record strong growth on a going forward basis.
With Surna planning to capitalize on non-cannabis industries, we believe the total addressable market (TAM) is substantially larger and are favorable on the expansion of the business. When compared to its peers, the company is trading at a fraction of the valuation and we believe that Surna has considerable upside potential.
We are of the opinion that Surna is well positioned to continue to deliver strong growth, sign contracts with additional clients, and expand the product offering. If you are interested in learning more about Surna, please send an email to support@technical420.com with the subject “Surna” to be added to our distribution list.
For the fastest access to data on Surna, you can sign up for our free newsletter!
Pursuant to an agreement between StoneBridge Partners LLC and Surna Inc. (SRNA) we have been hired for a period of 180 days beginning April 12, 2021 and ending October 12, 2021 to publicly disseminate information about (SRNA) including on the Website and other media including Facebook and Twitter. We are being paid $7,000 per month (SRNA) for or were paid “0” shares of restricted common shares. We own zero shares of (SRNA), which we purchased in the open market. We plan to sell the “ZERO” shares of (SRNA) that we hold during the time the Website and/or Facebook and Twitter Information recommends that investors or visitors to the website purchase without further notice to you. We may buy or sell additional shares of (SRNA) in the open market at any time, including before, during or after the Website and Information, provide public dissemination of favorable Information.
This press release may include predictions, estimates or other information that might be considered forward-looking within the meaning of applicable securities laws, including statements related to the Company’s ability to support its continued growth and fund the business’ sales and financial goals for at least the remainder of fiscal 2021 with proceeds remaining from its recent offering. While these forward-looking statements represent the Company’s current judgments, they are subject to risks and uncertainties that could cause actual results to differ materially, including risks and uncertainties associated with market conditions. You are cautioned not to place undue reliance on these forward-looking statements, which reflect the opinions of the Company’s management only as of the date of this release. Please keep in mind that the Company is not obligating itself to revise or publicly release the results of any revision to these forward-looking statements in light of new information or future events. When used herein, words such as: “potential,” “expect”, “look forward,” “believe,” “dedicated,” “building,” or variations of such words and similar expressions are intended to identify forward-looking statements.
A look at trailing revenues, bookings...
Revenue, Bookings
2020
Q1 - Sales $1.8m, bookings $1.1m
Q2 - Sales $1.7m, bookings <$1.6m>
Q3 - Sales $1.6m, bookings $4.2m
Q4 - Sales $3.4m, bookings $3.4m
2021
Q1 - Sales $TBD, bookings $5.5m
https://seekingalpha.com/amp/article/4422994-surna-stock-srna-dont-call-comeback?__twitter_impression=true
Surna: Don't Call It A Comeback
Apr. 30, 2021 2:35 PMSurna Inc. (SRNA)
Summary
Surna remains one of the few cannabis stocks that knows no geographical bounds and is poised to expand outside of marijuana cultivation.
Even after surging 21% since the start of April, Surna still trades around 1x 2021 revenue, a steep discount relative to industry peers.
I expect near-term catalysts to push the stock to new levels within the month of May, starting with Q1 earnings due by mid-May.
Those who follow me or who follow Surna (OTCQB:SRNA) know that there aren't a lot of people following the company. And I get it - the small public issue commands a market capitalization around $21 million, just barely enough for Seeking Alpha to allow coverage. But for those comfortable with nano-cap risk and looking for a "pick and shovel" cannabis industry investment, Surna checks all the boxes. And even a few bonus boxes.
Has a history of real sales and financial performance? Check.
On a path to profitability? Check.
Trades at a steep discount to peers? Check.
Primed to expand outside of the cannabis industry? Check plus.
If you're just hearing about Surna now here's the nitty gritty. This Boulder, Colorado-based company specializes in hardware and design strategies used to create and maintain the highly-specific conditions required to grow marijuana, something the industry refers to as controlled environment agriculture, or CEA.
Translation: Marijuana is a finicky plant and requires specific light, temperature, humidity and other environmental controls. Surna makes the systems that help growers grow.
Because Surna doesn't actually touch marijuana it isn't limited to a certain state or country. Of course, one could grow marijuana without Surna's systems, however they would be unlikely to do so as profitably. Surna's customers have done the ROI analysis, are well-capitalized enough to make major investments in their grow operation build-out, and understand that in a commodity business like that of marijuana cultivation, the low cost producer wins.
And the cherry on top farther down the road... because Surna's systems help growers maintain specific environments that aren't achieved outdoors and in nature, Surna's systems have immediate transferability to urban agriculture and agriculture conducted in environments that would otherwise be too hot or too cold to yield a crop.
Let's review each of the near term catalysts.
Earnings
We expect Surna to release its Q1 earnings within the next two weeks. Given that we have already received a preview of Q1 and know that bookings have returned to and even surpassed pre-pandemic levels, I think it's safe to say this earnings report will be well received. What we know already is that Surna booked $5.5M in new business during the first quarter. We also know that Surna booked a non-cannabis contract worth more than $100,000, the first such contract we have ever learned of.
We know from previous filings that some of its biggest contracts are coming from repeat-customers. I'd certainly like to know whether that was the case with any of the new bookings when we see Q1 earnings, as well as our first look at revenue for the year.
The market absolutely loved when Surna announced its first profitable year (FY2019), when Surna announced its largest contract in history (Jan 2021) and more recently when the company announced preliminary Q1 bookings ahead of the full earnings release. I don't think the company would have pre-released all of their good news especially with the shareholder meeting approaching, so I expect to be pleasantly surprised by Q1 earnings.
Shareholder Meeting, Proxy and Roadmap
Surna's management team laid out a roadmap in the past and I'm excited to learn more about where this stands, how the company is faring through the pandemic, and what's next for the roadmap. Much of this was laid out in the February 2020 investor letter and November 2020 investor presentation. Notably, Surna appears to be executing on its plan to deepen its product offering to attract new customers as well as its plan to add new product offerings to increase average order size.
We have also seen that the biography Surna uses in press releases is changing and seems to almost dance around the words "cannabis" and "marijuana," a recent development. In fact, reading the company's biography in the most recent press release you'll see sentences like "our customers include commercial growers" and "we leverage our experience in this space to bring value-added climate control solutions to our customers." The point is, it looks like Surna is finally ready to start putting energy and dollars behind branching outside of cannabis cultivation, something shareholders have been asking about for years. I can't wait to hear more! How many companies in the cannabis industry can you think of that can serve customers outside of the industry?
Surna will hold a shareholder meeting on May 28. There are several important votes in the proxy materials - I encourage all shareholders to review the proxy statement closely. I'm not going to dive into each vote here (although I welcome the opportunity to do so in the comment section) but I have read through them in detail and want to offer my general sentiment.
I'd like to hear more of the "Why" before voting but I am generally supportive of the roadmap laid out by this management team in the past. If management thinks that the proxy statement it has presented is the best chance to uplist or clean up the share structure or utilize shares as currency for mergers/acquisitions to add value to shareholders, I'm inclined to agree. If these changes help Surna uplist to Nasdaq or another exchange, meet inclusion criteria for various ETFs and institutional investors, and become a more widely held issue then there's no question we would see the stock higher than it is today.
I'm excited to learn more about the roadmap and company outlook and think the read-out of the investor meeting could prove a significant catalyst for the stock.
X Factor (Legislation, Partnerships, M&A, etc)
There is always the "X factor" with catalysts, those that are mere speculation or are impossible to predict if and/or when they might come to fruition.
The first of these is the likelihood of federal legislation allowing the cannabis industry to access banking. While many of Surna's customers are well-capitalized enough to plunk down the large amount of capital it takes to properly build out a state-of-the-art grow facility, there is no doubt that some players in the industry are not as well capitalized. Especially as legislative bodies work to address historical inequalities as they create frameworks and systems around their legal cannabis industry, it is inevitable that the federal government will allow cannabis entrepreneurs to access the federal banking system. We know that incremental dollars spent on Surna's systems are recaptured via increased yields and favorable ROI. As such there is no doubt in my mind that if the federal government allows access to capital we will see a significant increase in the number of unique customers who are suddenly well-capitalized enough to buy from Surna. This moment could come soon, as the U.S. House of Representatives passed their "SAFE Banking Act" measure last week.
There is always the possibility of an acquisition of Surna, something I have quietly worried about for a while. Perhaps Carrier (CARR), Trane (TT), or Johnson Controls (JCI) wishes to enter the cannabis space and leapfrog into the dominant spot by pairing Surna's technology with their own HVAC behemoth. As a current Surna shareholder, I don't want to see this. Yes, an acquisition would cause the stock to spike and offer a quick gain. But even if the premium offered by an acquirer was 2x or 3x today's levels I think this would be far below the company's fair market value. Though not a likely near-term catalyst, buying one's way into this industry via acquisition of Surna makes sense for any number of companies and it could happen any day.
Surna has recently joined a group of companies called GroAdvisor which appears to be building a one stop shop for those wishing to get into marijuana cultivation. Is GroAdvisor some kind of pre-cursor to a merger between Surna and its peers? I'd like to learn more about the company's overall roadmap at the investor meeting.
Surna also just announced a partnership with RSX Enterprises whereby the latter will handle key sales and marketing work for Surna in the U.S., Canada, and Mexico. Notably, the target market here is "indoor cultivators of all types," seemingly a major hint that Surna will continue to branch beyond the cannabis industry and that this partnership is part of that effort.
Final Thoughts
I have followed Surna since 2014 and owned shares in the stock for nearly as long. I'm still here because every time I take a fresh look at the company I return to the investment thesis that the stock is unknown, undersubscribed, and generally misunderstood. This is a solid business providing a niche product that is desperately needed by its customers, which also happens to operate in one of the hottest sectors of the economy.
Surna's existing customers are, themselves, growing and Surna's potential customer-base grows every time voters head to the polls. Surna's market isn't just limited to one state or province - like most cannabis industry companies - or even limited to one country. Indeed, Surna is free to bring its high-efficiency technologies to non-cannabis agriculture and other applications and I expect it will do so in greater frequency beginning in 2021.
Of course no investment is without risk and you should certainly weigh whether a ~$20M company is right for your portfolio. For me, the potential return far outweighs the potential risk. I suspect Surna's liquidation value (inventory, book of customers, proprietary information/technology, etc) is right around where the stock trades today.
There is reason to believe that the stock is primed for upside surprise. Look no further than the price action of January 14th of this year, not-so-coincidentally the day Surna announced its largest contract in history. The stock surged more than 200% that day, opening at $0.0729 per share and closing at $0.1999. More recent (though less dramatic) moves following positive news suggest that strong Q1 earnings and a clear roadmap for the future could finally trigger the price adjustment I have been expecting for months and even years.
Here's the bottom line: Surna booked $7.9 million worth of new business in Q3 and Q4 of 2020 and $5.5 million in Q1 of 2021. With $13.3 million worth of new business booked in just the past three quarters and Surna's sales apparatus hitting its stride as the economy starts to look past the pandemic, I think it is entirely likely Surna will book more than $20 million worth of revenue in 2021. With the stock trading around a $20 market capitalization this means Surna trades at 1x forward sales. Consider that companies in the cannabis space regularly command a price/sales multiple of 3x to 10x.
Assuming a reasonable 5x multiple to Surna's likely 2021 sales, I think the stock should - today - trade around a $100M market capitalization, nearly 5x where the stock closed on Thursday.
Disclosure: I am/we are long SRNA. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Surna Is Posting Record Revenue Numbers To Kick Off The First Quarter Of 2021
EDITORIAL Apr 27, 2021 • 7:52 AM EDT
4 MIN READ • BY MICHAEL BERGER
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Last week, Surna Inc. (OTCQB: SRNA) released preliminary first quarter numbers and we were impressed with the growth that was reported.
Bookings for the quarter came in at $5.5 million, which is the second highest in the company’s history. When compared to the prior quarter, booking increased by more than 50% (up 388% on a year-over-year basis) and we find this to be significant.
An Execution Story to be Aware of
Last year, we started to closely follow Surna and are favorable on the structure of the operation. The company is focused on commercializing and selling environmental control systems for the controlled environment agriculture (CEA) market and works with some of the world’s largest cannabis companies.
Surna is capitalizing on the ancillary cannabis market and is led by a management team that is laser focused on creating value for shareholders. Over the next decade, we expect to see increasing consumer demand for cannabis and companies will need to increase production capacity to capitalize on the demand.
Surna sells state-of-the-art environmental control systems and cannabis companies will need this type of technology to increase production capacity. One of the reasons we are excited about Surna is related to how the products are efficient from a cultivation and power consumption standpoint. We believe that customers are able to quickly justify the cost of Surna’s products if yields increase and the all-in price per gram decreases.
One of the important parts of the operational update is related to how Surna sold products to non-cannabis companies. We believe the company has a large total addressable market (TAM) since the products can be used to grow a wide variety of high-value crops. If Surna can start to capitalize on additional verticals, we expect to see more interest in the company and will monitor this aspect of the story.
An Under-appreciated Growth Story
At current levels, Surna is trading at a considerable discount to its peers and we find the risk-reward profile to be favorable. During the last year, the management team has slashed expenses and is focused on profitability. We believe the market is missing out on something significant with Surna and find its valuation to be compelling.
In the operational update, Surna attributed the growth to its expanded technology offerings as well as its continued aggressive sales and marketing efforts. Although COVID scared the market in the first half of 2020, there has been a substantial increase in the number of cannabis facilities in North America. We believe this trend will create a positive tailwind for Surna and are bullish on this.
we believe Surna is well positioned to continue to deliver strong growth, sign contracts with additional clients, and expand the product offering. If you are interested in learning more about Surna, please send an email to support@technical420.com with the subject “Surna” to be added to our distribution list.
https://technical420.com/cannabis-article/surna-is-posting-record-revenue-numbers-to-kick-off-the-first-quarter-of-2021/#
just spitballing here...
For the first time in the current regime, share price is important. The CEO has been transparent from the beginning with shareholder conference calls after each quarterly report (until the pandemic). Still, the share price was sub-important compared to developing the Surna product line and executing the business model that was clearly outlined.
Now, though, the share price needs to increase to achieve further development. Surna needs to increase in value to negotiate the proper leverage as mergers and acquisitions become closer to completion.
Note the two press releases regarding Anden and RSX Enterprise. And, for the first time a preliminary quarterly report (the same day the voting email dropped). Surna knows the reverse-split is a harmful notion and is instead foreshadowing an outlook that suggests otherwise.
My guess is that Surna held back some gunpowder for the upcoming 1Q 2021 report. The preview suggests bookings are highly favorable. Revenue and cash will be featured in the 1Q report in early to mid-May.
Mixed in - I suspect a press release or two with positive tones. And, a further favorable press release prior to the shareholders meeting to create momentum.
An actual merger post-shareholder meeting would create further excitement to carry Surna thru 2021.
from recent press release regarding 1Q 2021 bookings. Then refer to the press release from Jan 14 about the record contract. The bookings can lead to greater things...
• Bookings included six commercial sales contracts over $100,000, including one non-cannabis facility, totaling $5.0M in
new commercial contracts and $0.5M in additional equipment orders.
Surna Announces Largest Contract in its History
January 14, 2021
Announces $3.2 Million Sales Contract, Surpassing Previous Record of $2.8 Million
Boulder, Colorado, Jan. 14, 2021 (GLOBE NEWSWIRE) -- Surna Inc. (OTCQB: SRNA) announced today that it recently signed a sales contract valued at $3.2 million.
The project in Arizona is for an approximately 53,000 square feet facility. Surna is under contract to provide custom air handlers, heat recovery chillers, and its StrataAir™ vertical racking air flow system, for the cultivation, processing, drying and office spaces (the mechanical engineering design was done by Surna through a previous contract in October). Surna will also provide its SentryIQ® environmental controls, and system start-up.
Tony McDonald, CEO commented: “For the second time in six months Surna is announcing its largest-ever single contract with this latest contract being nearly 15% larger than the previous record. Over the last several years Surna has invested heavily in technology R&D as well as in our engineering capabilities. The result has been an expanding portfolio of product and system offerings and enhanced engineering sophistication. With Surna’s expanded array of technology offerings, our engineering and sales teams were able to present several options to the client, giving them the opportunity to compare and contrast design approaches and choose the solution best tailored to their particular goals, budget and cultivation methods.”
About Surna Inc.
Surna Inc. (www.surna.com) designs, engineers and sells cultivation technologies for controlled environment agriculture including: (i) liquid-based process cooling systems and other climate control systems, (ii) air handling equipment and systems, (iii) a full-service engineering package for designing and engineering commercial scale thermodynamic systems specific to cannabis cultivation facilities, and (iv) automation and control devices, systems and technologies used for environmental, lighting and climate control. Our customers include commercial, state- and provincial-regulated cannabis growers in the U.S. and Canada as well as other international locations, including those growers building new facilities and those expanding or retrofitting existing facilities. Currently, our revenue stream is derived primarily from supplying our products, services and technologies to commercial indoor and hybrid sealed greenhouse facilities ranging from several thousand to more than 100,000 square feet.
Headquartered in Boulder, Colorado, we leverage our experience in this space to bring value-added climate control solutions to our customers that help improve their overall crop quality and yield, optimize energy and water efficiency, and satisfy the evolving state and local codes, permitting and regulatory requirements. Although our customers do, we neither produce nor sell cannabis.
NASDAQ or Bust...
Voted "FOR" yesterday on 2m+ shares.
Surna Reports Record Bookings in Preliminary First Quarter Results
Bookings up 388% First Quarter Year Over Year, 51% over Previous Quarter
Boulder, Colorado, April 22, 2021 –– Surna Inc. (OTCQB: SRNA), a leader in environmental control systems for the controlled environment
agriculture (CEA) market, announced today its preliminary first quarter 2021 booking results
1
• Q1 2021 bookings were $5.5M, the second best in its history.
• The Q1 2021 bookings were up 388% over the same period last year and were 51% higher than Q4 2020.
• Q1 2021 and Q4 2020 bookings together represent a two-consecutive-quarter growth of 114% over the comparable Year-Over-Year period.
• Trailing three quarters booking performance (Q3-Q1) was up 94% over the comparable Year-Over-Year period.
• Bookings included six commercial sales contracts over $100,000, including one non-cannabis facility, totaling $5.0M in
new commercial contracts and $0.5M in additional equipment orders.
Surna attributes this growth to its expanded technology offerings as well as its continued aggressive sales and marketing efforts. Market
uncertainty from the pandemic appears to have eased in the second half of last year and the construction side of the industry has thrived,
with new optimism contributing to new contract growth.
Tony McDonald, Surna’s Chairman and CEO comments, “The extraordinarily positive results in new contract bookings over the last three
quarters are driven by the commitment from our talented teams at Surna. We realize that Q1 is now in the rear-view mirror, but we believe
Surna is well positioned to continue to deliver strong growth and is preparing for more client wins, new product rollouts, and an expansion of new services offerings.”
If you go to the Surna website, click on the "Resources" tab and then click on "Literature" in the dropdown menu. There are no less than six new Surna-Anden dehumidifiers listed in the data sheets.
https://surna.com/resources/#literature
One of the new pieces of equipment is the Surna-by-Anden - S710V1.
file:///C:/Users/marks/Downloads/Surna-by-Anden-S710V1-Spec-Sheet.pdf
BUSINESSSurna Inc (OTCMKTS:SRNA) Posts Revenues Of $3.387 Million In Q4 2020
Published 1 day ago on April 12, 2021By Ward Sport
Post Views: 44
Surna Inc (OTCMKTS:SRNA) posted a drop of 9% YoY in revenues to $3.387 million in Q4 2020. Its full-year revenues are $8.5 million (down 44% YoY).
Improves cash balance
Surna improved its cash balance in 2020 to $2.285 million (up 147.8% YoY). It is on the backdrop of improvement in operating activities.
The company conserved cash during the coronavirus pandemic by reducing operational spendings like travel expenses, compensation, and work hours.
Surna signed sales contracts worth $3.46 million in Q4 2020. Its total sales contracts in H2 2020 are $7.9 million.
The company’s effectiveness in marketing its services and bagging new orders is impacted by the government mandates to reduce work, general economic conditions, and working capital constraints.
Strategic pact with Anden
Surna signed a strategic alliance with Anden on March 16, 2021. As per the terms of the pact, both firms will improve their capabilities to provide best-in-class dehumidification to the agriculture environments.
Surna is a leader in the agriculture industry and familiar with every aspect of the design of cultivation facility besides specialization in HVACD systems.
Anden is a pioneer in the agriculture environment. It leverages the power of customized and innovative dehumidification equipment.
CEO of Surna, Tony McDonald, said the company is pleased to partner with Anden. Customers in the CEA (controlled environment agriculture environments) need affordable and high-performance dehumidification in their facilities to flourish. By joining hands with Anden, the company provides high-quality and reliable dehumidification equipment for their facilities.
General Manager of Anden, Sean McCarthy, said the company is looking forward to partner with Surna. He further said Surna’s flexible and unique approach to the design is impressive. Surna’s talent and commitment to developing effective grow rooms perfectly align with its target of producing efficient equipment for grow.
The team at Anden is pleased to work with Surna and strengthen their partnership to respond to future needs.
The product line of Surna comprises air handling equipment/ systems, liquid-based process cooling systems, automation and control devices, and a complete engineering package to design and develop thermodynamic systems.
The client base of Surna includes commercial growers in Canada and the US, and other locations worldwide. Surna generates revenues from the supply of products, services, and technologies for hybrid sealed greenhouse facilities and commercial indoor facilities.
https://factsaboutcbd.org/surna-inc-otcmktssrna-posts-revenues-of-3-387-million-in-q4-2020-4313
The phrase “reverse split” sends penny stock shareholders to the sell button. It happened when Surna made its first quarterly presentation. Everyone focused on the one phrase in a twelve page report.
It is better to (re)announce now and let the market digest the implications. Then Surna can draw acquisition candidates. The company needs gunpowder to make an explosion.
This may be the first step in an acquisition that will help Surna get to $100 mil in revenue.
In Tony we (I) trust.
My impression is that the Heating Venting Air Conditioning (HVAC) industry has become the HVACD industry. The added D is for Dehumidification.
Surna had dehumidification equipment - enough to check the box, YES. I am jumping to the conclusion that Surna identified 'D' as a weakness, prompting the strategic partnership with Anden. Anden has equipment that allows Surna to improve its value/quality proposition. This important component is filled.
(There was no overlap regarding GroAdvisors.com.)
This blog posting is on the Anden website...
In an ever-changing industry, the classic ways of sizing for dehumidification are coming into question. This is because grow room equipment systems such as lighting and temperature continue to evolve.
HVAC manufacturers are making claims about dehumidification. Lighting companies are developing lighting that produces less heat. Cultivators are running their rooms at lower temperatures and lower relative humidity.
There is not anything inherently wrong with developing more efficient systems in an attempt to save energy – after all, electricity is a major expense for every cultivator. However, within these efforts, we are seeing rooms that are undersized for cooling loads and dehumidification needs.
LEDs and Impact on Dehumidification
The LED lights that many cultivators are using in their facilities have solid benefits as far as energy consumption. However, this results in undersized cooling systems due to short-sighted assumptions.
Modern LEDs give off less heat than their HPS counterparts do. Many eliminate the green light from the color spectrum because leaves reflect this color. As unused colors are removed from the spectrum, the temperature around the leaves decreases. This creates a demand for higher overall temperatures in the grow rooms to facilitate proper transpiration. In these set-ups, cooling systems run for less time during the lights on period of the day thus forcing the dehumidifiers to run for longer periods.
Final Thoughts
There is always a trade off between energy savings and room sizing. A facility will save on energy use by running lights that use less power – and the cooling systems will run for shorter stretches as well. Nevertheless, in the end, the dehumidifiers are forced on during periods of the day when they normally would be dormant.
Sizing the room properly for all grow room equipment systems involved is essential for successful cultivation. Consideration of how these interconnected systems effect each other is a vital component of proper sizing.
The word cannabis is not in the news release. I think Surna is expanding to greenhouse growth of specialty crops. Burgeoning industry.
Partnership provides immediate opportunities for high quality dehumidification to CEA customers
Surna Inc. Announces Strategic Partnership with Anden
March 16, 2021
Partnership provides immediate opportunities for high quality dehumidification to CEA customers
Boulder, Colorado, March 16, 2021 (GLOBE NEWSWIRE) -- Surna Inc. (OTCQB: SRNA) and Anden, two leaders in controlled environment agriculture environments (CEA), today announced a new partnership designed to grow and enhance both companies’ abilities to deliver world-class dehumidification to the industry.
Surna is a pioneer in the industry with a deep understanding of every aspect of cultivation facility design, not just the HVACD and systems in which they specialize, allowing them to lend support from pre-design budgeting through facility commissioning and at every step in between. Anden is a leader in the industry, leveraging the power of innovative, purpose-built dehumidification equipment.
“We are excited to partner with Anden,” said Tony McDonald, Surna’s Chairman and CEO. “It’s clear that customers in the CEA space are looking for high performance, affordable dehumidification for their facilities to thrive. With Anden, we’re providing our customers with the reliability and quality they require for their dehumidification needs no matter the size of the facility.”
“We are looking forward to partnering with Surna,” said Sean McCarthy, Anden’s General Manager. “Surna is a leader in the industry and their unique and flexible approach to designing cultivation spaces is impressive. Their mission in creating effective and efficient grow rooms aligns with our goal of manufacturing efficient equipment Built for Grow. The Anden team is so excited to start working with Surna and we look forward to our future partnership and upcoming opportunities.”
About Surna Inc.
Surna Inc. (www.surna.com) designs, engineers and sells cultivation technologies for controlled environment agriculture including: (i) liquid-based process cooling systems and other climate control systems, (ii) air handling equipment and systems, (iii) a full-service engineering package for designing and engineering commercial scale thermodynamic systems, and (iv) automation and control devices, systems and technologies used for environmental, lighting and climate control. Our customers include commercial growers in the U.S. and Canada as well as other international locations, including those growers building new facilities and those expanding or retrofitting existing facilities. Currently, our revenue stream is derived primarily from supplying our products, services and technologies to commercial indoor and hybrid sealed greenhouse facilities ranging from several thousand to more than 100,000 square feet.
Headquartered in Boulder, Colorado, we leverage our experience in this space to bring value-added climate control solutions to our customers that help improve their overall crop quality and yield, optimize energy and water efficiency, and satisfy the evolving state and local codes, permitting and regulatory requirements.
Learn more at Surna Controlled Climate Systems.
About Anden
Anden is designed and built for professional cultivation with components proven to perform in the extreme conditions of a grow room environment. With a complete lineup of grow-optimized dehumidifiers at capacities up to 710 pints per day, humidifiers, and precision controls, Anden has the environmental control solution for any size facility to achieve desired humidity balance and maximum growth potential. From design and delivery to installation, setup, and service, the Anden team is committed to the cultivator and here to help every step of the way.
Learn more at www.anden.com.
The 3Q backlog was $8.2 million. Previous information suggests the record $2.8 million July contract would convert in 2nd Half of 2020. Prior year 4Q revenue was $3.7 mil. Exceeding that number would be a nice headline and require 45% conversion of the 3Q backlog.
Momentum should continue when the $3.2 million dollar January contract begins to convert to revenue for 1Q results in mid-May.
By June, an acquisition by Surna involving 50,000,000 shares will have a value much higher than $7.0 mil (based on yesterdays close of .14 per share).
Other metrics will be worth noting. Cash on hand was a funky $2 million at the end of the 3Q. Where did that come from and how will it be recorded in the 4Q? The PPP loan was forgiven and a like amount borrowed.
link to filing. part of compensation package...
(1) Effective February 16, 2021, the Reporting party was granted nonqualified stock options to acquire 268,700 shares of common stock at an exercise price of $.13 per share as an incentive compensation award for 2020. The options vested immediately and expire on 02/16/2031
Remarks:
This Form 4 was due to be filed on February 18, 2021. Due to an administrative oversight arising from the fact that we are largely working on a remote basis, the Form 4 was not filed until March 12, 2020
http://filings.irdirect.net/data/1482541/000149315221005892/ownership.pdf
"The CEO only exercised his stock options because the company was out of cash."
I don't follow...?
from the article;
"Werner-Simon closes with this: “There are 20 months until the 2022 midterms. The soil is tilled for receptivity to a more mature marijuana industry operating under coexisting federal and state regulation and taxation systems … Even for the most conservative of political actors, this groundswell will be hard to resist. Marijuana has gone mainstream; its tie-dye stigma has diminished while action from the federal government has been incentivized. Federal marijuana legalization will ultimately have its day.”