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CuraLeaf is a co-sponsor, along with Surna, of the Veterans Cannabis Project. I hope they are collaborating...
Arizona marijuana shops spend millions to expand ahead of recreational sales legalized by Proposition 207
Ryan Randazzo
Arizona Republic
updated November 20
Marijuana businesses are spending millions to expand their operations and buy new medical licenses in Arizona, as the passage of Proposition 207 by voters on Election Day will allow sales of recreational marijuana to adults in about four months.
The businesses are expected to hire thousands of employees to meet the demand for legal marijuana, one executive said Thursday.
Some existing dispensaries had already started expansions in anticipation of the measure passing, and the unofficial vote tally set off a fresh round of acquisitions this week as companies snap up the limited dispensary licenses available to prepare for a bustling recreational market.
"We are already building walls and pounding nails," said Steve Cottrell, president of Curaleaf Arizona. Wakefield, Mass.-based Curaleaf has eight medical-marijuana dispensaries in Arizona and 95 medical and recreational marijuana shops in 23 states.
He said the company is spending about $4 million on upgrades at existing Arizona shops in anticipation of recreational sales, and has prepped for about eight months. Its Glendale shop is more than doubling in size to 5,000 square feet, he said. "These are all construction projects that have been approved by each municipality," he said.
In the years since a similar initiative failed in 2016, he said dispensaries in the state have gone from having 1.4 million square feet of cultivation space to about 6 million square feet, giving them plenty of capacity to meet the anticipated demand from recreational sales.
"Plants are sprouting and doing their thing," he said. "We are well underway. When adult use comes to fruition, we will be more than ready to go."
Curaleaf has a ninth Arizona license and is seeking zoning approval somewhere in the metro Phoenix area to open a dispensary with it, Cottrell said, declining to disclose the municipality.
Thousands of workers will be needed to handle the expected boom in business, according to Steve White, the CEO of Tempe-based Harvest Health and Recreation.
Harvest is expecting to hire hundreds of new employees to work the cash registers and operations at their 15 Arizona shops alone. Harvest had 37 retail shops nationwide as of Oct. 5, and continues to grow.
On Monday, Harvest announced that it settled a dispute with a company called Devine Hunter Inc. to buy three additional dispensary licenses. The companies initially struck a deal last year to transfer six licenses to Harvest that ended in litigation.
The price was not disclosed. The dispensary licenses are not yet affiliated with operating dispensaries, though Harvest is working to open three new retail outlets with them, which will give the company 18 operating Arizona dispensaries.
"We will be hustling as quickly as we can with two of them," White said, adding that there is an "outside chance" the third can open next year as well.
Surna Investor Presentation.
https://s3.amazonaws.com/cdn.irdirect.net/PIR/699/4997/Investor%20Presentation%20Q32020_11-12.pdf
Last week as I was copying a press release to post on this site I deleted the "About Surna" portion. As I was doing so, I noticed the word "light". Hmmm. I wondered how long ago that was inserted in the company description. That partially explains my cryptic post 11434. The word "light was added prior to the Project Veteran's Cannabis show in December.
Since the show in December, VividGro has developed a relationship with Surna. Details are fuzzy. Reveiw posts 11123 and 11349 and 11381.
I have been very excited about the 3Q report. It would be fantastic if some revenue streams via GroAdvisor are developing. Cash position is critical. McDonald is making the business model come to life. The share price may spike like last August and stay there this time.
Post 11123
James R. Shipley is a new Board Member. ...Chief Strategy Officer of GroAdvisor...Vice-President of Sales and a member of the executive leadership team at VividGro since 2017.
Post 11349
Blog from Surna website includes paragraph on lighting (and fertigation).
Post 11381
From Aug 11 2020 10-Q second quarter filing. Excerpt from the 10-Q filed Aug 11 2020 describes growth strategy. See below.
Our Growth Strategy
...Strategic relationships might include referral marketing agreements, co-development of unique integrated solutions with best-in-class partners, and acquisitions. To extend the automotive analogy, engaging in these types of relationships is like adding more dealers to sell our products, at little cost to us.
During Q1 2020 we joined the GroAdvisor group www.groadvisorworldwide.com) and began joint marketing initiatives with the group. GroAdvisor is a group of seven companies each with expertise in selected technologies necessary to build a cultivation facility such as lighting, buildings, modular grow rooms, fertigation, etc. Surna provides its expertise in environmental controls to the group and its prospective customers.
If some of these strategic alliances are successful in driving top-line revenue for us and our partners, over time these relationships could develop into more exclusive arrangements or evolve into possible acquisitions or a source of strategic capital for us. There can be no assurance that we will be able to successfully execute any of these strategic initiatives. Efforts will be primarily focused on working with new strategic partners to co-market each other’s products and services and
Notice the difference between these two press releases. Let There Be Light. (in red below).
From Sep 13 2019 press release (introducing fan coils)
About Surna
Surna Inc. (www.surna.com) designs, engineers and manufactures application-specific environmental control and air sanitation systems for commercial, state- and provincial-regulated indoor cannabis cultivation facilities in the U.S. and Canada. Our engineering and technical team provides energy and water efficient solutions that allow growers to meet the unique demands of a cannabis cultivation environment through precise temperature, humidity, and process controls and to satisfy the evolving code and regulatory requirements being imposed at the state, provincial and local level.
From December 3 2020 press release (announce sponsorship of Veteran’s Cannabis Project)
About Surna
Surna Inc. (www.surna.com) designs, engineers and manufactures application-specific environmental control and air sanitation systems for commercial, state- and provincial-regulated indoor cannabis cultivation facilities in the U.S. and Canada. Our engineering and technical team provides energy and water efficient solutions that allow growers to meet the unique demands of a cannabis cultivation environment through precise temperature, humidity, light, and process controls and to satisfy the evolving code and regulatory requirements being imposed at the state, provincial and local level.
Surna's share price peaked at 6.8 cents on Feb 25th. By the end of March there was the pandemic, operations reduction, and resignation of two board members.
Since then, the share price has drifted to under 3.0 cents per share.
There have four press releases issued (listed below) and they are significant. Still, they have had no effect on lifting shareholder sentiment.
Perhaps the 3Q report due next week will catch the eye of the investment community. The down-side risk seems minimal at these levels.
If the SRNA 3Q report is favorable (the cash position will be important), there may be a run back to February share price and better. It will run fast too.
Press Releases since March
Apr 21, 2020 Introducing GroAdvisor – a premier partnership of product and service providers
Jun 30, 2020 Surna Appoints Two New Directors
Aug 06, 2020 Surna Announces Largest Contract in its History
Aug 25, 2020 Surna Introduces Expanded Services and Technology Offerings
Italics added...
Clean Sweep For Marijuana On Election Night: Arizona, New Jersey And Montana All Legalize Recreational Cannabis
Nov 4, 2020,02:53am EST
In a perfect Election Night for marijuana legalization, voters in four states approved ballot measures legalizing recreational cannabis for adults 21 and over.
And in two other states, voters approved initiatives allowing increased access to medical marijuana—a significant blow to the country’s lingering War on Drugs that advocates say can also fill revenue holes created by the coronavirus pandemic.
Voters approved recreational cannabis legalization in four states on Election Night. Voters in Arizona, Montana, New Jersey, and South Dakota all approved recreational marijuana legalization, and all by significant margins.
Fifteen states now have laws allowing adults to access recreational cannabis.
South Dakota voters also approved a separate measure allowing for medical marijuana, becoming the first state to skip straight from cannabis prohibition to legalization in one move.
Oregon Legalizes Psilocybin Mushrooms and Decriminalizes All Drugs.
These States Will Be The Next To Legalize Marijuana.
And in a sign that draconian drug laws are finally losing favor in the South, one of the last bastions of cannabis criminalization in the country, voters in Mississippi approved their own medical-marijuana initiative.
Though details of each state’s new laws differ—and it’s far from clear exactly when adults will be able to purchase cannabis in licensed retail dispensaries in each state—taken together, cannabis’s latest string of victories on Election Night sends a strong signal to Congress.
Such a strong showing is expected to encourage federal lawmakers in Congress to finally acknowledge marijuana reform’s vast popularity among voters in America across all party and ideological divides and—at long last—alter federal laws that still ban cannabis outright.
And legalization’s clean sweep also puts significant pressure on states that do not allow for policymaking via voter initiative—chief among them New York—to follow suit and pass their own legalization laws.
Upon taking office in 2018, New Jersey Gov. Phil Scott, a former Goldman Sachs executive and US ambassador to Germany, promised to legalize marijuana quickly, but failed to convince state lawmakers to pass a plan after several years of trying.
After voters approved ballot Question 1 by a nearly two-to-one margin, cannabis possession, use, and manufacture for adults 21 and over is legal in the state beginning on January 1, 2021.
Specifics such as possession limits, cultivation rules—including whether home grow will be allowed at all—and how retail dispensaries will be set up and licensed and when have all yet to be determined. Question 1 also did not clear the way for past marijuana offenses to be expunged from criminal records.
Despite the lack of details—and no clear indication when the first legal sale will occur—Murphy praised the measure as a major step forward for racial and social justice, and as a potential revenue source for budgets ravaged by the coronavirus pandemic.
The state spends an estimated $143 million every year to arrest roughly 32,000 people for cannabis-related crimes, most of them for simple possession.
In the night’s other most significant victory, voters in Arizona overwhelmingly approved Proposition 207, 59.80 percent yes to 40.20 percent no, according to results as of 11:30 p.m. local time.
Supported mostly by the state’s active and established medical-marijuana industry, Prop. 207 allows adults to possess up to two and a half ounces of cannabis flower and no more than 12 grams of cannabis concentrate, and to cultivate up to six plants at home.
Despite laws allowing medical marijuana, Arizona law still allowed strict punishment for adults possessing small amounts of cannabis.
“Until now, Arizona had imposed some of the strictest prohibition laws in the country,” said Erik Altieri, executive director of the National Organization for the Reform of Marijuana Laws. “By rejecting this failed policy, no Arizonan going forward will be saddled with a criminal conviction for engaging in the personal possession or cultivation of cannabis, or face the lifelong stigma that comes with it.”
The first retail stores to sell cannabis in Arizona to adults will be existing medical-marijuana dispensaries. Sales will be subject to a 16 percent tax.
In Montana, voters approved Initiative 90, 57 percent in favor to 43 percent opposed, as of about 2:30 a.m. East Coast time.
The measure allows adults to grow four plants at home and sets a 20 percent tax rate for sales.
In what may be the most surprising development, in South Dakota, voters approved both Amendment A to legalize marijuana for adults 21 as well as Measure 26, which sets up a medical cannabis program for adults “with serious medical conditions.” Both go into effect on July 1, 2021.
“A few years ago, nobody would have predicted that South Dakota would legalize marijuana before New York,” said Matthew Schweich, deputy director of the Marijuana Policy Project and one of the leaders of the South Dakota campaign, in a statement issued early Wednesday. “But that’s the power of the ballot initiative process.”
And voters in Mississippi approved Initiative 65, which will set up a state-regulated medical-marijuana program for qualified patients, who would be able to access the drug after approval from a doctor. Unlike some other measures, there is no limit on the number of medical-marijuana dispensaries allowed in the state.
An estimated 67 percent of Americans support marijuana legalization, according to most polling. Cannabis remains a banned substance at the federal level. Several bills that would amend the Controlled Substances Act and overturn federal prohibition remain stalled in Congress for lack of a hearing in the Republican-controlled Senate.
Emerging Markets...
Yahoo Finance
2020 elections: Marijuana legalization measures in 5 states could grow industry by $9 billion
Alexis Keenan
Alexis Keenan·Reporter
Tue, November 3, 2020, 11:37 AM CST
The once widely controversial issue of marijuana legalization has been decidedly eclipsed by this year’s divisive presidential race, though voters in five states are being asked to weigh in on legalization. Recreational or medical use, or both, are on the ballot in Arizona, Mississippi, Montana, New Jersey, and South Dakota.
This year’s elections have marijuana legalization likely pushing into additional U.S. states that could grow the industry’s size by $9 billion, according to cannabis market firm New Frontier Data.
Arizona — Proposition 207
Voters who say “yes” to Proposition 207 in Arizona will support legalized recreational marijuana use for those 21 and older, along with a 16% excise tax on the drug. Voters who say “no” to the measure will support keeping the state as one that permits medical use, yet outlaws recreational use and possession.
Mississippi — Ballot Measure 1, Initiative 65 & Initiative 65A
Mississippi voters this election are being asked to weigh in on medical marijuana legalization options. Recreational use remains illegal in the state and is not up for consideration. As a first step, under Ballot Measure 1, voters must decide to either support or outlaw medical use.
Initiative 65 and Initiative 65A are additional issues voters are being asked to weigh in on, should Ballot Measure 1 pass. A “yes” vote for Initiative 65 would limit medical use for treatment of specific medical conditions, as well as cap quantities that patients could possess at 2.5 ounces, whereas 65A would permit broad medical use and possession, without limitatioMontana — I-190
Adult recreational use is on Montana’s ballot under the Marijuana Legalization Initiative, or I-190. A “yes” vote to the measure would legalize recreational purchase and use for those 21 and older. Possession of the drug would be capped at 1 ounce, or less than 8 grams of concentrate.
New Jersey — Question 1
Adult recreational use is also on the ballot in New Jersey after efforts to legalize recreational use failed in the state legislature. Voters who cast a “yes” vote to Question 1 will support amending the state’s constitution to permit those who are 21 and older to use and possess marijuana, as well as to permit marijuana to be cultivated, processed, and sold in New Jersey.
South Dakota — Constitutional Amendment A & Measure 26
Voters in South Dakota will consider both recreational and medical marijuana use. Those who vote in favor of Constitutional Amendment A will support amending the state’s constitution to legalize recreational use, as well as possession and distribution of up to one ounce of the drug, for those 21 years old and older.
The measure, if adopted, would also require the state legislature to draft and pass new laws to establish a state medical marijuana program by no later than April 1, 2022. Measure 26, separately, would require the state to form a medical marijuana program for limited use and possession for people afflicted with a debilitating medical condition.ns.
goodgodyall Friday, 10/09/20 06:48:52 AM
Re: goodgodyall post# 11379 0
Post #
11381
of 11422
excerpt from the 10-Q filed Aug 11 2020.
Our Growth Strategy
...Strategic relationships might include referral marketing agreements, co-development of unique integrated solutions with best-in-class partners, and acquisitions. To extend the automotive analogy, engaging in these types of relationships is like adding more dealers to sell our products, at little cost to us.
During Q1 2020 we joined the GroAdvisor group www.groadvisorworldwide.com) and began joint marketing initiatives with the group. GroAdvisor is a group of seven companies each with expertise in selected technologies necessary to build a cultivation facility such as lighting, buildings, modular grow rooms, fertigation, etc. Surna provides its expertise in environmental controls to the group and its prospective customers.
If some of these strategic alliances are successful in driving top-line revenue for us and our partners, over time these relationships could develop into more exclusive arrangements or evolve into possible acquisitions or a source of strategic capital for us. There can be no assurance that we will be able to successfully execute any of these strategic initiatives. Efforts will be primarily focused on working with new strategic partners to co-market each other’s products and services and possibly jointly develop new and improved products and services with cannabis-specific applications, as opposed to exclusively seeking acquisitions
Surna has been cancelled due to lack of interest.
The 3rd Q results will be compared to year ago 3rd Q when Surna had a record-breaking report. On the bright side, comparison to 2Q 2020 will suggest Surna is back on its growth track. New products. New contracts. New markets after the elections. Share price follows eventually... The Surna 3Q report is due no later than Mon Nov 16th.
Surna Introduces Expanded Services and Technology Offerings
August 25, 2020
Announces Full MEP Design Services with Expansion of HVAC Technologies
Boulder, Colorado, Aug. 25, 2020 (GLOBE NEWSWIRE) -- Surna Inc. (OTCQB: SRNA) today announced an expansion of its portfolio of services and products.
While Surna has been historically known for its expertise in 2 and 4-pipe chilled water solutions (also known as hydronic cooling and dehumidification), its new technology offerings include:
Direct expansion (DX) units with standalone dehumidification options, including split systems, mini-splits and packaged roof top units (RTUs).
Complex DX system options with integrated dehumidification via hot gas reheat and wintertime economization.
Desiccant solutions for low humidity applications.
Racking solutions for optimal airflow designs in tiered layouts.
Many clients have already benefited from Surna’s expanded MEP (mechanical, electrical, plumbing) engineering services incorporating the new technologies. Four recent contracts include the following designs:
Project in Missouri: Surna will provide engineering design services for cooling, dehumidification and wintertime economization using its new Complex DX RTU systems in a 33,000 square foot facility. Surna is also providing its new racking airflow design and technology in this tiered grow room design.
Project in Iowa: Surna is providing its design services and DX split systems with hot gas reheat for a 5,000 square foot indoor drying facility for industrial hemp production.
Project in Michigan: Surna provided engineering design services for cooling and dehumidification using its new DX split systems with hot gas reheat in a 1,200 square foot facility.
Project in Pennsylvania Surna will provide engineering design services using its new Complex DX RTU systems with integrated dehumidification in a 52,000 square foot facility.
The new technology offerings are driven by customer feedback and are evidence of Surna’s commitment to deliver innovative environmental control solutions to its customers, with the added convenience of obtaining products and MEP design services from a single source.
“These new products and services demonstrate Surna’s evolution and deliver on promises we have made to our customers and shareholders,” said Tony McDonald, Surna’s Chairman and CEO. “With this broader range of design services and greatly expanded product portfolio, we are able to provide optimal environmental control solutions for virtually any size and sophistication of cultivation facilities.”
excerpt from the 10-Q filed Aug 11 2020.
Our Growth Strategy
...Strategic relationships might include referral marketing agreements, co-development of unique integrated solutions with best-in-class partners, and acquisitions. To extend the automotive analogy, engaging in these types of relationships is like adding more dealers to sell our products, at little cost to us.
During Q1 2020 we joined the GroAdvisor group www.groadvisorworldwide.com) and began joint marketing initiatives with the group. GroAdvisor is a group of seven companies each with expertise in selected technologies necessary to build a cultivation facility such as lighting, buildings, modular grow rooms, fertigation, etc. Surna provides its expertise in environmental controls to the group and its prospective customers.
If some of these strategic alliances are successful in driving top-line revenue for us and our partners, over time these relationships could develop into more exclusive arrangements or evolve into possible acquisitions or a source of strategic capital for us. There can be no assurance that we will be able to successfully execute any of these strategic initiatives. Efforts will be primarily focused on working with new strategic partners to co-market each other’s products and services and possibly jointly develop new and improved products and services with cannabis-specific applications, as opposed to exclusively seeking acquisitions
Surna is low on cash. July contracts will provide relief. Dilution concerns remain. On the other hand, there are elections pending that will allow an increase in prospective clients. Currently the concentration of contribution by client is limited primarily to three primary customers that make up 60% of revenue. Much better than prior year when one customer made up 60% of revenue.
The product portfolio has expanded so that Surna can pursue most of the trade as opposed to previous limitations (100k sq ft or smaller).
Pending acquisitions could push Surna to the forefront of this industry where it belongs.
AUGUST 11, 2020 - 6:43 AM PDT
Surna Reports Q2 2020 Results and Recent Sales Contracts
Announces $3.1 million in New Sales Contracts in July
Tony McDonald, CEO, commented: "...The $3.1 million in new sales contracts, coming in just the first month of the quarter, already marks the third quarter of 2020 as among the strongest in our Company’s recent history.”
excerpts from newsletter...
https://www.marijuanamoment.net/congress-delays-legal-cannabis-vote-newsletter-september-18-2020/
House Democratic leaders postponed a planned vote for next week on a bill to federally legalize marijuana—a decision apparently spurred by moderate members who feared advancing the issue ahead of the election—but Majority Leader Steny Hoyer (D-MD) said the body is “committed” to passing the bill “later this autumn.”
A new poll found that a bare majority of Arizona registered voters support the state’s marijuana legalization ballot measure. Military and veteran households were especially likely to back legal cannabis in the survey.
STATES
New Jersey Gov. Phil Murphy (D) tweeted, “Like our neighbors in PA, we’re seeking to legalize adult-use marijuana the right way – with social justice leading the way. This would: ??Move NJ away from unfair drug laws ??Ensure fairness for minority-owned businesses ??Create a stronger, fairer state”
Indiana Gov. Eric Holcomb (R) opposes marijuana reform, but Democratic challenger Woody Myers supports decriminalizing marijuana and legalizing medical cannabis.
Pennsylvania’s lieutenant governor tweeted, “Some: Stop talking about legal cannabis + help our businesses + jobs! Most: Legal cannabis will generate $100’s of millions each year to help small businesses + PA farmers + PA veterans + thousands of unsubsidized jobs. Also, most PA residents want this.”
Mississippi’s agriculture commissioner spoke about why he opposes a medical cannabis ballot measure.
The New Hampshire House Criminal Justice and Public Safety Committee voted to recommend the full body consider a marijuana legalization bill next session.
Michigan regulators announced a recall of medical cannabis products that failed testing for yeast and mold.
The Colorado Department of Agriculture appointed new members to the Hemp Advisory Committee.
West Virginia regulators expect to begin issuing medical cannabis cultivation permits next week.
Washington State regulators took actions on rules concerning marijuana vapor products, processor and retailers licenses and vitamin E acetate.
California regulators are accepting proposals for research projects on the implementation of marijuana legalization from public universities.
Oregon regulators are surveying marijuana businesses about the impact of recent wildfires.
Global societal macrotrends and how they affect the produce industry
Globalization
Population diversification
Precision technology
The advancement of technology has always been closely integrated with the produce industry. This is something that AeroFarms, for example, was built on: “For us, it’s about optimizing the key attributes that consumers are looking for. We are working with chefs and the menu development now starts at the farm. We’re able to use technologies to build smart farms, which allow us to bypass season and deliver product consistently year-round,” Oshima shares.
“It’s not science for science’s sake, but for a greater reason,” Foo adds. “Today’s technology helps to solve the problems of the consumers. It’s important that people have a clear grasp on the drivers behind certain developments so that we can understand that the technology is there to enable great access for consumers to the healthy foods the industry has to offer.”
Climate adaptation
Accelerated urbanization
The final macrotrend that was discussed was urbanization. The majority of the world’s population lives in urban areas, and the consumer trends in urban areas differ widely from those in rural areas. “Our produce is grown by the community, for the community. We have farms located in inner-city schools and growing inside cities. It is about diversifying the supply chain and improving last-mile efficiency, and indoor farming is a big part of that,” Oshima says.
italics added.
North American greenhouse grower announces new distribution center in British Columbia
Mastronardi Produce is no stranger to creating growth and opportunity. In a move that will continue the company’s unprecedented growth, Mastronardi has announced the establishment of a new distribution center in British Columbia on the west coast of Canada. The distribution center will serve the Western region of the US and Canada, delivering premium greenhouse-grown produce to a market that has only seen a small presence by the company to-date.
“We have a very strong presence in the East, where consumers have access to our unique and flavorful products,” says Paul Mastronardi, President and CEO of Mastronardi Produce. “We’ve had our eye on the Western region for some time now, and we are excited to finally bring fresh Sunset® flavor to that region.”
The 70,000 square foot facility, located in Surrey, BC will feature the same state of the art operating systems and food safety protocols as the company’s other North American distribution centers for inventory tracking, customer fulfillment, receiving, shipping and tracing of produce from farms to consumer. Its location positions it well to distribute into the United States, as well as export into other markets beyond North America. The DC will be served by an expanded network of growers in the Western region.
“The Sunset® brand and the quality of our produce are well known among consumers,” continues Mastronardi. “We have already seen an incredible excitement from growers in that region to begin partnering with Sunset® to grow our exclusive varieties with exceptional flavor.”
The new BC distribution center will ship Sunset® tomatoes, peppers, cucumbers, berries and lettuce to major retailers across the region beginning January 2021.
For more information:
Justine Chevalier
Mastronardi Produce
It would be great if Surna reached a deal with a tomato farmer...
https://www.freshplaza.com/article/9253912/bringing-year-round-local-supply-to-canada-by-lighting-up-greenhouses/?edition=1
Red Sun Farms
Bringing year-round local supply to Canada by lighting up greenhouses
Red Sun Farms, a North American greenhouse grower with locations in Canada, USA, and Mexico, are embracing technology by lighting up a high-tech greenhouse to bring a year-round supply from Canada.
There are three distinct projects underway in support of year-round Ontario grown produce:
• First, a new state of the art 27-acre facility with a dedicated partially lit growing area. This investment will allow for a longer growing season in Canada for specialty tomatoes.
• A second project has 42 acres lit, all dedicated to growing 12 months of the year in organic & conventional farming. With this new technology, they can extend their growing season into the winter months, responding to consumer demand for local produce year-round.
• Finally, a third project introduces the first of its kind LED technology that will supply Ontario peppers year-round. This unique technology recreates and modulates the full spectrum of the sun's natural light, essentially enabling the farm to deseasonalize productions.
"Introducing these new technologies into the greenhouses will allow Red Sun Farms to offer year-round supply from Ontario," states Jim DiMenna, President Red Sun Farms, "Usually over the winter months, we ship our product from Mexico to Canada; however, this new lighting technology will allow us to give some of our Canadian customer's limited products over the winter months."
For more information:
Tiffanee Ford
Red Sun Farms
...Five states in particular will let voters decide on that this November.
Yahoo Finance
State ballot measures to legalize cannabis add $9B to U.S. market: RPT
Thu, September 24, 2020, 1:22 PM CDT
Video Transcript
ZACK GUZMAN: Cannabis enthusiasts will have to wait a little bit more here to see discussions about legalizing at the federal level take place in the House. A vote was originally scheduled for the Moore Act, which would move to legalize cannabis at the federal level as well as expunge some criminal records for people tied to cannabis offenses.
It's mostly a symbolic vote, though. As-- as the Senate remains Republican-controlled, not a lot of expectations for that to move past Senate Majority Leader Mitch McConnell. But states themselves have quite a bit of power here to grow the US legal cannabis market. Five states in particular will let voters decide on that this November.
And one firm watching this play out says that it could add a total of $9 billion to the US cannabis market, and here to chat that with us is New Frontier Data's Chief Knowledge Officer, the man behind the report, John Kagia joins us now. And, John, it's good to be chatting with you again. I mean, $9 billion is a lot of money to boost here to the market size of cannabis here in the US. Talk to me about what you're expecting should these ballot measures get voter approval.
JOHN KAGIA: So I think there's a couple of reasons why we think this is going to be such a consequential year for cannabis in the US. One, you know, the-- the fact that we have five states on the ballot, six that-- six initiatives that are going to be voted on this November, makes this a pretty milestone year in terms of voters getting a voice in the status of cannabis in our society.
And there's a couple of states which we're paying particularly close attention to. We think Arizona's adult use initiative is particularly important. You know, Arizona tried four years ago to legalize adult use. The vote lost by 2%-- by 2 percentage points, and so this is going to be a return to the ballot. And with the demographic changes that we've seen in the state, the poll is actually looking better for legalization this year.
Second is New Jersey. New Jersey is going to be a phenomenally consequential market for the East Coast. If you think about the proximity of the state to New York, Pennsylvania, Maryland, and other mid-Atlantic states, we think in and of itself New Jersey is going to be a huge market. But once you add in that regional element to it, the state could be earning, you know, nearly $2 billion, $1.8 billion by 2025. So a huge market and a huge marker for the East Coast.
And then a third state that I think is interesting to watch because we've never seen this happen before is South Dakota, which is the first state that we have seen that is putting on the ballot both a medical and an adult use legalization initiative at the same time.
And what that tells us is, while we have historically seen pretty long lags between the presentation of a medical measure and then that state transitioning to adult use, South Dakota is the first state which is trying to do both of those at once. And I think it just reflects this kind of growing momentum social acceptance and public shift in attitudes that we're seeing around this issue.
ZACK GUZMAN: It's also a red state and a pretty confidently put red state. I mean, we've seen that state go red-- you know, you can go back a long time, decades we're talking here in terms of how red South Dakota is. But, I mean, talk to me about maybe how that represents the shift here in cannabis as well.
Because in-- in this pandemic, we've heard from a number of analysts talking about how states are desperate to make up revenue, lost revenue, and how cannabis in a lot of these states would-- would represent a pretty big opportunity here to bring that in. I mean, how much does that pressure along with a lot of the criminal justice reform aspects we've been discussing here in 2020, when you put those two things together, talk to me about the momentum that you've seen play out over the last couple of years on that front.
JOHN KAGIA: That's a great question, and I think a really important part in understanding why we're seeing these dramatic shifts. So historically, cannabis has been viewed as a largely liberal issue. So you saw legalization happen first in the Western states, which have historically been blue, and then in the Northeast, which is also historically a blue region.
But what's notable about this election cycle is we're starting to see-- or we're continuing to see this momentum building within traditionally historically conservative states, whether that's Arizona, Mississippi, Montana, and South Dakota. And it's that convergence, one, the-- the general's public's acceptance now that medical cannabis is broadly perceived to have therapeutic value. I think that is largely settled in the American public opinion.
About 90% of Americans believe medical cannabis has value. So this is much less of a-- a left-right issue. I think the science is a firm support for it. Second is the growing public awareness of the-- the inequities in cannabis prohibition. The ACLU recently updated its "Cannabis in Black and White" report, which shows the racial discrepancies in prohibition enforcement.
And Black cannabis consumers, even though they consume at the same rates as white cannabis consumers, are still nearly four times more likely to be arrested for cannabis offenses, and in some states nearly 10 times more likely. And as folks are looking at those numbers, they're just-- you know, the inequity of-- of that-- those prosecutions, particularly given the national debate that we're having right now on policing, I think is ringing loudly and resonating loudly with a lot of people.
ZACK GUZMAN: [INAUDIBLE]
JOHN KAGIA: When--
ZACK GUZMAN: Sorry, go ahead.
JOHN KAGIA: Yeah, the economics of cannabis. At a time when COVID has so acutely hurt state and local budgets, you know, there's a lot more open consideration for things that might historically have been problematic. And so I think you're seeing much more receptivity to the idea of legalizing cannabis when you look at a state like Colorado, which, in its first six years of legalization, generated nearly $80 billion in sales.
Foreshadowing? GroAdvisorworldwide seems to be knit into the blog posted on Sep 9th from the Surna website blog (copied and pasted below).
https://groadvisorworldwide.com/
WHAT DOES CONTROLS REALLY MEAN IN THE CANNABIS INDUSTRY
Posted by Brandy Keen on September 9, 2020 5:24 pm
In the cannabis industry, the term “controls” is thrown around a lot. The term in our industry means something different to every supplier, and to every client, based on their level of sophistication and experience.
In general, controls will remove the human element from cultivation operations, minimizing the impact of mistakes or oversights and ensuring what is supposed to happen, happens, when and how it’s supposed to happen. However, correctly applied controls systems can have enormous additional benefit, far beyond simply enabling lights or irrigation pumps at the right time. In order to understand what your controls system can do for you; you must first understand what it is you’re getting from your chosen supplier.
Most cultivators think of “controls” as the dashboard where they can see their room parameters and adjust photoperiods or temperature setpoints, and a lot of folks make their decisions around controls based solely on that user interface. This is an important part of the toolkit but is really the least critical piece to a controls system’s functionality.
The real complexity, and expertise, lies in the programming between the dashboard and the critical processes. For instance, when the temperature setpoint on a user interface/dashboard is changed, any number of important actions must take place, from simply providing power to a compressor in the most basic systems to reading a leaving air temperature and modulating a valve in more sophisticated systems.
Understanding and optimizing those sequences is what really differentiates a good controls company.
Sometimes, cultivators might think they’re getting a controls system, when really, they’re just getting a good-looking dashboard. Then they’re unpleasantly surprised when they realize that the dashboard isn’t really controlling anything. When evaluating controls systems, it’s important that the companies you’re considering have been vetted by your lighting, HVAC, and irrigation system providers to ensure they’re really giving you all the functionality the critical systems in your facility require. Here’s some help on what to ask a controls and automation vendor.
In industry-speak, when someone says “controls” it can mean a number of things: actual controls (enabling and disabling critical functions in the facility), automation (performance of critical functions in the facility) and data collection (collecting data relevant to critical functions in the facility). These systems generally fall into three categories of sophistication.
The first is what we’d refer to as entry level, or simple enable/disable controls paired with some data collection and limited alarming. This is the category that the vast majority of controls companies in the cannabis industry fall into. These companies enable and disable lights, CO2, cooling and dehumidification, and irrigation based on timing, thermostat set point, and/or EC or moisture reading in the cultivation media. Or, more simply: when this happens, turn it on, and when this happens, turn it off.
The sophistication associated with true building management systems is lacking in this type of approach, but the dashboards are usually tailored to the needs of the cultivator and this type of approach is certainly better than no controls at all.
More sophisticated controls systems will step up the data collection to include run time and energy use associated with equipment, and additional zones where data is gathered. More importantly, they allow for modulation of the equipment being controlled in the facility. Most commonly this modulation means adjusting lighting levels based on spectrum or PPFD, and modulating HVAC equipment to respond with precision to changing loads.
In addition to improving precision, modulating controls for HVAC in particular can have significant energy benefits—essentially, the same effect that highway miles on cruise control vs. stop and go traffic have on gas mileage in a car. In order to take full advantage of modulation in controls systems, the HVAC system design must have modulating capability, whether that’s modulating hot gas reheat in DX systems, where refrigerant volumes, compressor speeds and sometimes fan speeds are modulated, or four pipe chilled water, where water temperature and volume, compressor speeds, fan speeds and pump speeds can be modulated.
We’ve found that this modulation component has been very difficult for most controls providers in our industry to achieve but is necessary for maximum performance at minimum energy use. More sophisticated systems can also provide the option of alarms associated with equipment failure, so the cultivator knows there is an issue to be addressed before that issue impacts the cultivation space.
Further benefit can be realized by ratcheting up the sophistication and adding analytics into the mix—taking the data that has been collected and reviewing it against cultivation functions to improve performance.
This can be as simple as adjusting the controls sequence of operation to minimize energy use in an HVAC system, or as complex as identifying trends between two seemingly unrelated events to tweak SOP’s. There are some companies that provide grow room analytics, which are usually integrated with controls. Many cultivators, with the proper level of data collection, can perform these tasks manually as well.
Any of these levels of sophistication can have enormous value to the cultivator. Simply enabling and disabling critical processes reliably will remove the element of human error and limit risk, along with reducing manpower requirements and improving efficiency. However, the more sophisticated the system, the greater the potential benefits.
Lighting
Entry level controls systems enable and disable lighting based on the time of day, or photoperiod defined by the operator, which ensures that plants remain in the correct photoperiod at all times. More sophisticated systems can help cultivators reduce energy cost. Lights can be staged on to reduce peak demand and associated demand charges, which can be significant in some municipalities. Lights can be dimmed or disabled in case of temperature anomalies. Very sophisticated lighting controls systems can adjust light levels based on desired PPFD associated with a specific stage of plant growth. This is usually only utilized in LED applications to avoid spectrum change but can be beneficial both in perfecting the cultivation strategy and ensuring energy consumption is limited to what is absolutely necessary at any given time.
HVAC
Entry level controls systems work the same way as web-enabled thermostats: turn on cooling when the room gets too warm, turn it off when it cools off. Or turn on the dehumidifiers when the room gets too humid and turn it off when the humidity is reached. The result is a constant on/off throughout the day, which results in a controls trend line that looks more like a sawtooth, where the room parameters bounce up and down off setpoints. This uses more energy than absolutely necessary (refer to the cruise control analogy previously referenced). Unfortunately, with most HVAC systems designed primarily for comfort cooling, this is the best they are capable of, so upgrading the controls system has limited benefit. Some, more sophisticated comfort cooling systems such as VRF may have internal controls to modulate the cooling function, but the dehumidification function will still operate as a simple on/off in most instances.
However, with a well-designed HVAC system, where dehumidification is carefully considered and, often, integrated with the cooling system, modulating controls become not just beneficial, but necessary. These systems are a clear step up from systems intended primarily for comfort cooling, and the required controls systems do far more than just manage temperature and humidity.
Modulation of every critical process associated with environmental control ensures precision—a controls trend that resembles a flat line as opposed to a saw tooth. This same modulation allows the system to use only what it needs at any given time, slowly ramping up cooling or dehumidification processes if setpoints start to drift out of spec, instead of flooring it after it’s already fallen behind. This level of sophistication allows for the monitoring of each piece of equipment associated with HVAC, which has a dual benefit. First, if something is operating abnormally, you have the opportunity to catch it before it impacts the grow. This can potentially save a crop, but less dramatically can help you to understand that something needs maintenance before it’s broken. Second, watching the time of operation, and associated loading, can provide a good mechanical engineer information that they can use to tweak and perfect controls sequences to improve performance and reduce energy use. In some HVAC designs, cultivators have the ability to actually change the way the system is operating to respond to changes in the grow, as opposed to simply responding to a temperature set point.
Irrigation and Fertigation
This is the area in cultivation operations where we find some level of controls and automation is most common, primarily because hand watering is so labor intensive that it almost has to be automated in some way. Some cultivators manage fertigation (nutrient mixes) manually and automate the irrigation component (delivering to plants). Others automate both—but few controls systems handle both nutrient mixing and delivery of the nutrient mix to the plants so in these cases some level of coordination is required.
Some irrigation systems operate based on a schedule, some operate based on moisture sensors, and others operate based on EC of the grow media. The most efficient systems minimize run off by delivering only what the plants can consume and minimize nutrient waste by dosing only what nutrient is lacking. This is opposed to managing based solely on EC without understanding which nutrient is actually low. In the absence of moisture sensors, minimization of run off can be accomplished by measuring and understanding the volume of run off and adjusting irrigation schedules and volumes accordingly.
Analytics
Whether through an analytics platform, or manually, data collected through controls systems isn’t valuable unless it’s being analyzed and reviewed. Collecting data around climate, irrigation, revenues, yields, and quality, and then looking for trends is vitally important to continuous improvement. Performing data collection and analytics can help you make positive changes in the facility in nearly every area—from reducing energy use by changing irrigation strategies to modifying temperature and humidity setpoints for a specific strain. Constant review of data allows cultivation companies to identify correlations between seemingly unrelated events, or review anomalies when harvest totals are a surprise to identify root cause. If utilizing an analytics platform, it can be very helpful to ensure that the controls provider who is collecting data can easily export that data to the analytics platform—or, better yet, that they coordinate from the outset.
Blog author and Surna’s Co-founder and Sr. Technical Advisor recently spoke at a USGBCWM.org virtual event on this topic. You can listen to the webinar here.
While Surna sits uncomfortably near its all-time low and under $6.0 million market cap, it seemed like a good idea to take a look at some noteworthy pieces from Feb 25th shareholder letter.
3. Enter strategic alliances to expand our marketing and sales reach. We were unsuccessful in this endeavor, first because we did not prioritize it highly enough, and second because we have yet to attract partners of the caliber we are seeking...
...Investor Relations. Surna previously had limited investor relations activities. Now, we have a clear plan designed to create an actively traded, widely held, and fully valued stock over time—and in concert with achievement of our financial goals. In 2019 we took the required baby steps of hosting regular earnings calls and attending a select number of investor conferences. We will have more to share in this regard over the next few quarters...
...Our goal is to continue growing, both organically and through strategic opportunities, while maintaining the financial discipline we implemented last year so that, ideally, we will only need to raise cash to fund growth or for strategic acquisitions.
Las Vegas Cannabis Conference will be going virtual for 2020! Cannabis Conference 2020 Virtual will take place over a period of 3 weeks on September 15th, 22nd, and 29th.
Schedule
Sep 22
2:15 PM – 2:45 PM
Technology & Solutions: Building Your Grow – Where to Start
TECHNOLOGY & SOLUTIONS SESSION
Sponsored By SURNA
Construction of cultivation facilities presents a number of unique challenges for any construction team. With the right team in place, commercial cultivators can minimize construction delays and budget overruns and build a facility focused on maximizing the value of capital expenditures and minimizing operational expenses. Join this panel to learn how to put together the right construction team and avoid costly pitfalls.
Brandy Keen Speaker: Brandy Keen, Co-Founder and Senior Technical Advisor, Surna, Inc.
Daniel Istrate Speaker: Daniel Istrate, Principal/Architect, KONTEXTURE, LLC
Luz Elena Parra Speaker: Luz Elena Parra, Project Director, Parra Project Inc.
https://www.cannabisconference.com/speakers
At the time of writing this article, seven states are expected to have legalization initiatives on their November ballots. Arizona, Montana, New Jersey, and South Dakota have ballot measures that would legalize cannabis for adults over 21, and Idaho, Mississippi, Nebraska, and South Dakota have ballot measures that would establish a medical cannabis program.
https://weedmaps.com/news/2020/08/2020-could-still-be-a-big-year-for-cannabis-legalization/
2020 could still be a big year for cannabis legalization
Summer Fox · August 3, 2020 4:20 pm PDT | Updated 1 week ago
Nothing in 2020 has gone according to plan, and cannabis legalization is no exception. According to Vox's criminal justice and public health reporter German Lopez, at least 18 states were predicted to legalize cannabis to some degree this year, either through their legislatures or via ballot measure. 2020 was supposed to be a big year for cannabis legalization.
And then COVID-19 happened.
Across the country, ballot measure campaigns reliant on gathering signatures were forced to shut down operations due to health concerns and social distancing guidelines. Campaigns in a handful of states aiming to put cannabis legalization on the ballot, including Arkansas, Missouri, and North Dakota, are now on hold for this election cycle, and activists are already gearing up for 2022. In Oklahoma, a combination of both a legal challenge to a proposed adult-use initiative and COVID-19 has made it nearly impossible to gather enough signatures to qualify for the November ballot.
If unable to meet the upcoming deadline, the campaign will likely try to put legalization up to a vote in a special election in 2021, or they will have to wait until the 2022 election. Meanwhile, previous legislative priorities, including cannabis, fell by the wayside as local, state, and federal legislatures pivoted to address the public health crisis.
The global pandemic cannot entirely account for why certain legalization movements failed to cross the finish line, as that is the nature of politics and governance, but there is no doubt that COVID-19 has greatly impacted the cannabis policy landscape.
However, up to seven states will have the opportunity to vote for medical or adult-use legalization this November[/color][/color]. If all seven ballot measures pass, it will be the second biggest year for cannabis legalization, falling just short of the nine states that legalized medical or adult-use cannabis in 2016.
Despite all of the uncertainty and disruption caused by the pandemic, it's looking like 2020 could still be a pivotal year for cannabis.
Cannabis legalization will be on the ballot in multiple states
Unless something extraordinary happens in the next few months, federal legalization is very likely off the table for 2020. Despite some recent movement on the Marijuana Opportunity, Reinvestment and Expungement (MORE) Act, legalization has gained little momentum in Congress. President Trump also appears to have no plans to move on legalization and is facing little to no pressure on the matter from his political opponent, Joe Biden. So once again, the states are moving forward on cannabis legalization with or without the federal government. As is true with much of the history of cannabis in the United States, the fate of legalization lies in the hands of the voters.
At the time of writing this article, seven states are expected to have legalization initiatives on their November ballots. Arizona, Montana, New Jersey, and South Dakota have ballot measures that would legalize cannabis for adults over 21, and Idaho, Mississippi, Nebraska, and South Dakota have ballot measures that would establish a medical cannabis program.
Idaho is still in the signature-gathering phase, however, activists are in the middle of a legal battle to win the right to collect signatures electronically. The Idaho Cannabis Coalition claims they have around 45,000 unverified signatures, and they will need 55,057 valid signatures to qualify for the ballot.
Montana, South Dakota, and Mississippi will vote on multiple cannabis-related ballot measures. South Dakota will be the first state to vote on separate medical and adult-use legalization initiatives in the same election year. Montana residents will vote on one measure to legalize adult-use cannabis, and a separate measure to add a constitutional amendment that would set the legal age for cannabis at 21.
In Mississippi, voters will have the chance to vote for two separate legalization initiatives, Initiative 65 and Alternative 65A. Both would legalize medical cannabis, however there are significant disparities in the level of detail between the two measures.
Initiative 65, led by the Medical Marijuana 2020 campaign, includes specific information on qualifying conditions, possession limits, license fees, tax rates, which state department would oversee the program, and deadlines for program implementation. Alternative 65A, which was placed on the ballot by the Mississippi State Legislature as an alternative to Initiative 65, provides minimal details on the proposed medical program.
Campaigning in the era of COVID-19
COVID-19 has dramatically impacted how both signature gathering and campaigning are being carried out due to health concerns and social distancing mandates. Signature gathering typically involves people going door-to-door or visiting busy locations. It often requires close contact with others and the sharing of materials, including clipboards, petition forms, and pens. Many campaigns had to make the decision to either suspend their operations or make significant changes to protect the health and safety of both the campaigners and the general public.
“It was decided that it was reasonable and prudent to gather signatures if we made major changes to the process. So we pretty much reinvented signature gathering … We ordered 150,000 pens so each signer could have their own ink pen….There were handwashing stations and social distancing regulations. And then Montanans showed up. Every time we set up a signature gathering table, people would stop their cars, get out, get a pen and sign. 130,000 people did that,” said Pepper Petersen, the political director for New Approach Montana.
In addition to preventing signature gathering, COVID-19 has also impacted campaign strategies leading up to the election. Once an initiative receives enough signatures to qualify for the ballot, campaigns typically employ a voter education and advertising strategy to ensure the success of a ballot measure. This includes television and digital advertising, printed educational materials, and door-to-door canvassing. This year, however, campaigns must focus almost entirely on reaching voters remotely.
According to Axel Owen, the campaign manager of NJ Can 2020, a coalition supporting the legalization efforts in New Jersey, “[COVID-19] forced us in the beginning stages to take a look at the way campaigns are done. Normally we go hire organizers. We get people out knocking on doors. We do the standard things. But because of COVID, we had to make an educated decision early in the campaign to focus more on digital and new ways of approaching voters on this issue.”
On top of educating people on what to vote for, COVID-19 has presented a new challenge for campaigns- educating people on how to vote. With all of the uncertainty surrounding the upcoming election, particularly whether voting will be done entirely by mail or not, campaigns are preparing to educate voters on how to mail in their ballots.
“The most dangerous thing in our mind is somebody who votes for marijuana legalization but doesn't do the ballot right. They don't sign the outside envelope and their vote gets thrown out,” Owen explains. “What we've been doing is making sure that our communication is focused on both the education around the issue ... but also educating voters on how to properly vote by mail. Making sure they know what they're doing and making sure that their vote is actually counted.”
Impacting the future (and past) of cannabis in America
One of the most important components of cannabis legalization is the opportunity to address the harms caused by the War on Drugs. Of the seven states with legalization ballot measures this year, only Nebraska and Mississippi have taken steps in the past to decriminalize cannabis. In the other five states, a person can still be arrested and receive jail time for simple possession.
Arizona, Montana, and South Dakota all have decriminalization provisions in their ballot measures; and Arizona and Montana's ballot measures would allow those with certain cannabis-related charges to expunge their records.
“We had so many people participate in the drafting. We had a statewide tour where we collected information ... and 100% of the time, [people] said expungement was the one thing that they all wanted to see in the law no matter what,” said Pepper Petersen. “To be out here campaigning for this and to see that 100% support, it galvanizes your personal commitment to making sure that this thing passes.”
Legalization on its own will not automatically repair the harms of cannabis criminalization, but it is often a step in the right direction.
Even though seven states have the opportunity to legalize medical or adult-use cannabis this November, the different ballot measures vary in both their scope and level of detail. Some initiatives are more robust and provide a clear roadmap for what the cannabis market will look like, whereas others provide a skeletal framework that will rely on the legislative and regulatory processes to hash out the details of the future cannabis market in that state.
Cannabis on the local level
Beyond ballot measures, other electoral races have the potential to impact the future cannabis market. Governors, local and state representatives, and city councils all play an important role in shaping the cannabis industry. For example, many ballot measures include provisions that would allow local governments to ban commercial cannabis activity in their jurisdiction, highlighting the importance of local elections.
The work is not over after the passage of a ballot measure. The quality of a cannabis market relies on those in government tasked with the implementation and oversight of the newly legalized cannabis industry. Voters in favor of cannabis legalization should take the time to research the different candidates running for office in their state to determine whether they would support or hinder cannabis legalization and access.
This November, up to seven states could legalize medical or adult-use cannabis. Idaho and South Dakota, both notorious for having some of the strictest cannabis laws in the United States, could finally join the majority of the country in legalization. States could generate millions of dollars in much-needed tax revenue during a time when public funds are drying up due to COVID-19, patients across the country could soon have access to crucial medicine, and thousands of people could have their previous cannabis records expunged.
2020 could still be a big year for cannabis legalization.
I put a BUY in several days ago at the 52 week low ($0.0215). No action. It seems the MM's are going to walk this down under two cents. If there was a trade a $0.022 it should have been a sell. As the share price drops, nervous trades push the share price lower.
I also think that Surna is one news release from its 52 week high ($0.13)
Bayer invests in vertical farming with focus on seeds
Tom Karst
August 12, 2020 09:58 PM
Vertical farming, the bastion of tech start-ups, has attracted the attention of global company Bayer AG, with plans to develop vegetable varieties suited to that indoor farming model.
Leaps by Bayer, the Bayer AG “impact investment arm,” and Temasek, an investment company headquartered in Singapore, have formed Unfold to target innovation of vegetable varieties designed for vertical farms. according to a news release.
Led by CEO John Purcell, Unfold will be a U.S. company in the Davis, Calif., area. The company will have commercial research and development operations in California and Singapore.
Unfold raised $30 million in the initial funding round and entered into an agreement for certain rights to germplasm from Bayer’s vegetable portfolio, according to the release.
Purcell said Unfold will focus on investment in germplasm and research on crop growth models best suited for vertical farming.
“As a company fully focused on the vertical farming industry, Unfold will combine leading seed genetics with the best ag tech experts in order to dramatically advance productivity, flavor and other consumer preferences,” Purcell said in the release.
Innovation that offers sustainable solutions for agriculture is one of the 10 areas of engagement and investment that Leaps by Bayer is focused on, Jürgen Eckhardt, head of Leaps by Bayer, said in the release.
Vertical farms can reduce dependency on synthetic chemistry and other crop inputs, optimize water use and allow production in challenging environments with limited arable land. Production cycles are also shorter, according to the release.
Investments in vertical farms have increased significantly.
“The global food challenges we increasingly face require us to rethink traditional farming practices,” John Vaske, head of agribusiness at Temasek, said in the release.
https://www.thepacker.com/article/bayer-invests-vertical-farming-focus-seeds?
link at the bottom...
Surna Inc. Is Starting To See Some Light At The End Of The Covid-19 Tunnel
EDITORIAL Aug 12, 2020 • 7:01 AM EDT
Although the COVID pandemic has put the global economy under heavy pressure, several major industries have seen companies report record revenues and profits. From technology to cannabis, there are a number of industries that have been bright spots in the pandemic and we have been focused on companies that have benefited from the spreading of the virus.
Earlier this week, Surna reported second quarter financial results that caught our attention and we want to provide an update after the release. During the period, Surna recorded a $614,000 net loss on more than $1.6 million of revenue. When compared to the same period last year, the company reported significantly less revenue, and this is a trend that we do not expect to continue. Although the business was impacted by the COVID pandemic, we expect the drop-off in revenue to be transitory.
Surna is led by a management team that was able to quickly adapt to the current market environment. Through a series of cost cutting initiatives, the company has been able to substantially lower its cash burn and this is a trend that we find to be significant. From a capital standpoint, Surna has been able to raise capital through a few avenues and we believe that the focus on strengthening the balance sheet is key to the long-term success of the business.
What we find to be most interesting is that several businesses in these top performing industries have been trending lower from a stock price and a valuation standpoint. For example, take a look at the performance of Surna Inc. (SRNA) which recently announced the signing of a sales contract that is valued at $2.8 million.
The project is in Illinois and is for a multi-state operator that Surna has previously worked with in other states. The facility is approx. 88,000 square feet and Surna is under contract to provide a full suite of climate control products and technologies for cultivation and processing, the supply of major mechanical equipment, SentryIQ environmental controls, and system start-up.
This announcement comes a few months after Surna reported $1.8 million of revenue for the entire first quarter. The Illinois contract represents a major milestone for the business since the cost of the projects is greater than all of the revenue that was reported in the first quarter.
From a cash flow and balance sheet standpoint, Surna is well positioned to execute on previously announced growth initiatives and our readers should be aware of this. 2020 has been a challenging year for Surna and we believe that the management team did a great job at cutting costs to stay afloat. Going forward, we expect to see business ramp up in the back half of the year and in early 2021.
If you are interested in learning more about Surna, please send an email to support@technical420.com to be added to our distribution list.
https://technical420.com/cannabis-article/surna-inc-is-starting-to-see-some-light-at-the-end-of-the-covid-19-tunnel/
2Q results (Apr-May-Jun) are due no later than Friday, August 14th. The previous year revenue (2Q 2019) was $4.2 million. The previous quarter (1Q 2020) was $1.8 million.
Sales cures everything. The recent contract will go in 3Q bookings and probably some revenue will be generated before the quarter ends.
Does anyone know when Surna last held a shareholders meeting?
The backlog was $9 million so that may save Surna. Most of the backlog, however, was from "Old Surna" which converted to revenue slower and was less reliable. No matter, Apr-May-Jun 2020 Surna is going up against last year 2Q revenue of 4.2 million.
Bookings will next to nothing, correct?
That report will arrive no later than Fri Aug 14.
from the Surna website.
Surna Appoints Two New Directors
June 30, 2020 09:15 ET | Source: Surna Inc
Industry Veterans Randy Shipley and Nick Etten Bring Cultivation Facility and Multi-state Operator, Executive Experience
Boulder, Colorado, June 30, 2020 (GLOBE NEWSWIRE) -- Surna Inc. (OTCQB: SRNA), a designer, engineer and manufacturer of environmental control and air sanitation systems for commercial, state- and provincial-regulated indoor cannabis cultivation facilities, is pleased to announce the recent appointments of Randy Shipley and Nick Etten as independent directors. These appointments fill vacancies on the Board of Directors (the "Board"). President and CEO Tony McDonald, also a director, was appointed Chairman of the Board.
The addition of Shipley and Etten strengthens Surna’s Board with two cannabis industry veterans. Each new director provides not only successful experience in and commitment to the industry, but deep industry relationships as well. In addition to their cannabis experience, the new directors have between them many years’ successful experience as entrepreneurs, executives, and investors.
"Surna continues to focus on both organic growth and strategic relationship opportunities even during the unprecedented current overall business conditions. The addition of Randy and Nick to our Board will help Surna dramatically on both fronts," said Tony McDonald, the Company's CEO.
James R. Shipley
Randy Shipley has been the Chief Strategy Officer of GroAdvisor and the Vice-President of Sales and a member of the executive leadership team at VividGro since 2017. 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. VividGrow is a company that provides agricultural technology for consumer and commercial applications. From 2014 to 2017 Mr. Shipley, acting in several executive roles, helped build multiple business lines for MJIC Inc. (now Manifest 7); these roles included being a member of the board of directors, Chairman and President. Mr. Shipley has been active in the cannabis business, where he has founded various summits such as the Marijuana Investor Summit and been involved in many educational workshops and business expos. Previously, Mr. Shipley was an officer and chief revenue officer with Carrier Access Corporation (CACS), a public company trading on Nasdaq. Prior to Carrier Access, Mr. Shipley worked at Williams Companies in their telecommunications divisions.
Nicholas J. Etten.
Nick Etten joined Acreage Holdings in 2018 where he is currently the Head of Government Affairs. Acreage is a vertically integrated, multi-state operator of cannabis licenses and assets in the U.S. In 2017 he founded the Veterans Cannabis Project where he continues to serve as Chairman. Veterans Cannabis Project (VCP) is an organization dedicated to advocating on behalf of cannabis access issues for U.S. military veterans. From 2015 to 2017, Mr. Etten set aside his career to provide care for his seriously ill son. Mr. Etten’s career has been focused on the growth equity market, and prior to Acreage, he held positions including Vice President of Global Business Development for FreightWatch International, and Director of Corporate Development for Triple Canopy. Mr. Etten was an investment professional at Trident Capital, where he focused on the cyber-security space, and an investment banker at Thomas Weisel Partners.
Contact:
Jamie English
Managing Director, Marketing
jamie.english@surna.com
303.993.5271
From May 12th filing - 1Q report extension, now due Monday, June 29th
Item 8.01 Other Events.
Surna Inc. (the “Company”) will be relying on the Securities and Exchange Commission’s order under Section 36 of the Securities Exchange Act of 1934, as
amended, Granting Exemptions from Specified Provisions of the Exchange Act and Certain Rules Thereunder, dated March 4, 2020 (Release No. 34-88318 (as
modified on March 25, 2020, by Release No. 34-88465, collectively the “Order”) to delay the filing of its Quarterly Report on Form 10-Q for the first fiscal quarter
of fiscal year 2020, due to circumstances related to the coronavirus disease 2019 (Covid-19). In particular, Covid-19 has caused disruptions in the Company’s
day-to-day operations, including (i) restricting access of Company staff to the Company facilities where records are maintained, (ii) reducing the ability of
Company staff to carry out certain accounting functions and then preparing the Company financial report, and (iii) impeding the Company staff from effectively
working with certain of its external accounting professionals. Overall, the Company has experienced significant delays and disruptions in its preparation of the
Form 10-Q report. The Company currently anticipates filing its form 10-Q report on or before June 29, 2020 (the date that is 45 days from the original filing
deadline of May 15, 2020 for the 10Q report).
from May 29th 8-K filing...
Item 4.01 Changes in Registrant’s Certifying Accountant
On May 26, 2020, Surna Inc., a Nevada corporation (the “Company”), notified ACM LLP, 2015 Clubhouse Drive, #203, Greeley, CO 80634 (“ACM”), that
the Company had dismissed ACM as its independent registered public accounting firm. The dismissal of ACM was approved by the Board of Directors of the
Company (the “Board”).
https://www.achrnews.com/articles/143165-agriculture-and-livestock-climate-control-products
Agriculture and Livestock Climate Control Products
Growing indoor crops and caring for animals requires solutions designed for the industry
May 15, 2020
Angela D. Harris
Climate control for any grow situation is important. From marijuana crops to livestock barns, each application has its own set of special IAQ needs. When contractors start to work with these types of facilities, there are multiple considerations for successful product installs. One of those is facility location. Regional temperatures and humidity, for example, will dictate if evaporative cooling is acceptable or if another source of heating and cooling must be applied.
Other considerations for indoor agriculture and livestock are the type of building being used and its construction materials. These environmental factors will impact how the air reacts to different stimuli, including plants, soil, animals, water, and feed. Internal sources of heat gain must also be calculated, accounting for lights, people, and equipment; sources of moisture must also be considered. In essence, the contractor has a new set of building occupants to make comfortable, and it is no longer humans in an agricultural or livestock facility.
The following products are some examples of items that can be used in diverse applications for the environmental controlling of these facilities.
Surna®
The Surna ductless fan coil is a dual-chilled water fan coil, low-profile ceiling-hung unit that provides multidirectional airflow in the canopy. The unit is designed to treat the air in the space where it is installed, eliminating the need for ductwork. With minimal installation requirements, the product allows for a solution that can be deployed relatively quickly. Additionally, multiple fan coils are typically installed in a single grow room, providing inherent redundancy for the facility. Maintenance requirements are minimal, and there are very few components that can fail, which translates to more reliability for the grow.
When used as part of a chilled water heating and cooling system in a grow room, Surna’s ductless fan coil provides efficient cooling and dehumidification due to enhanced sensible heat ratios to a facility of any size. These units are small, versatile, and easy to install, requiring only a connection to chilled water and power to begin cooling. This ductless fan coil is designed specifically for open floor plans and cannabis cultivation environments. An easily replaceable Can-Fan component allows for easy maintenance and cleaning. The bi-directional discharge airflow eliminates the need for ducting to get optimal air movement when incorporated into a proper design.
www.surna.com
from the website. recent blogs...
preventative maintenance warning
PREVENTATIVE MAINTENANCE, NASA & THE NORMALIZATION OF DEVIANCE
Posted by Brandy Keen on June 4, 2020 8:30 am
MODULATING VS STANDALONE DEHUMIDIFICATION – DECISIONS, DECISIONS!
Posted by Brandy Keen on June 9, 2020 2:22 pm
from the websites' blog dated April 21st.
SURNA COMMUNITY
A message from Tony McDonald
Surna President and CEO
As of Tuesday, March 17th, Surna made the decision
to require employees to work remotely in response to
local orders in our home city of Boulder, CO. However,
our production personnel are still working as needed
at our facility, while practicing social distancing and
within the rules of the city order, to ensure there is no
disruption to product deliveries. We take the health and
well-being of our hard-working team seriously, and we
hope that taking this precaution will help minimize the
spread of illness.
We are continuing business-as-usual. We do not
foresee disruptions in our operations or deliveries,
and we will continue to support our clients in every
way possible, so they receive the level of support
they expect and deserve. However, in our effort to
mitigate the spread of COVID-19, the Surna team has
implemented the following adjustments:
• For the foreseeable future, we will not have
an active receptionist to answer general calls.
HOWEVER: please leave a voicemail indicating
who you would like to reach and/or the nature
of your call. We will receive your message
immediately via email where our coordinator will
promptly send your message to the appropriate
person
• If you call a team-member’s direct line or
extension, please leave a voicemail if they do
not answer. They will immediately receive your
message via email.
• We will continue to follow-up on all tech
support inquiries within 24 hours of receiving
your message.
For additional questions on how we are addressing our
business operations or concerns you may have, please
contact us at info@surna.com.
We appreciate your patience and cooperation during
these unprecedented times as we do our part in
keeping our communities safe and healthy. Surna is
committed to your well-being and success; please do
not hesitate to let us know if
May 29, 2020 8-K Current report
Item 4.01 Changes in Registrant’s Certifying Accountant
On May 26, 2020, Surna Inc., a Nevada corporation (the “Company”), notified ACM LLP, 2015 Clubhouse Drive, #203, Greeley, CO 80634 (“ACM”), that
the Company had dismissed ACM as its independent registered public accounting firm. The dismissal of ACM was approved by the Board of Directors of the
Company (the “Board”).
Pursuant to applicable rules, the Company makes the following additional disclosures:
1. ACM has served as the Company’s independent registered public accounting firm since 2017.
2. ACM’s reports on the consolidated financial statements of the Company as of and for the fiscal years ended December 31, 2019 and 2018, did not
contain any adverse opinion or disclaimer of opinion and were not qualified or modified as to uncertainty, audit scope or accounting principles, except that such
reports contained explanatory paragraphs in respect to uncertainty as to the Company’s ability to continue as a going concern and the change in its method of
accounting for leases due to the adoption of the Accounting Standards Codification Topic 842, Leases, which was discussed in Footnote 4 to the consolidated
financial statements for the year ended December 31, 2019. During the fiscal years ended December 31, 2019 and 2018, and through May 26, 2020, there
were no disagreements with ACM on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure, which if not
resolved to ACM’s satisfaction would have caused it to make reference thereto in connection with its reports on the financial statements for such years.
3. During the fiscal years ended December 31, 2019 and 2018 and through May 26, 2020, there were no events of the type described in Item 304(a)(1)
(v) of Regulation S-K, other than certain material weaknesses in respect of effectiveness of internal controls over certain aspects of the financial reporting
process because: (i) the Company lacks a sufficient complement of personnel with a level of accounting expertise and an adequate supervisory review structure
that is commensurate with the financial reporting requirements of the Company, (ii) there is inadequate segregation of duties due to the limited number of
accounting personnel, and (iii) the Company has insufficient controls and processes in place to adequately verify the accuracy and completeness of
spreadsheets that we use for a variety of purposes including revenue, taxes, stock-based compensation and other areas, and place significant reliance on, for
our financial reporting.
4. On May 28, 2020, the Company engaged Sadler, Gibb & Associates, L.L.C. (“SGA”), located at 2455 East Parleys Way, Suite 320, Salt Lake City, UT
84109, as its new independent registered public accounting firm. The engagement of SGA was approved by the Board.
5. During the fiscal years ended December 31, 2019 and 2018 and thereafter through May 28, 2020, the Company did not consult with SGA with
respect to any matter whatsoever including without limitation with respect to any of (i) the application of accounting principles to a specified transaction, either
completed or proposed; (ii) the type of audit opinion that might be rendered on the Company’s financial statements; or (iii) any matter that was either the subject
of a disagreement (as defined in Item 304(a)(1)(iv) of Regulation S-K) or an event of the type described in Item 304(a)(1)(v) of Regulation S-K.
The Company has provided ACM with a copy of the foregoing disclosure and requested that it furnish the Company with a letter addressed to the
Securities and Exchange Commission stating whether it agrees with the statements made therein. A copy of such letter, dated May 28, 2020, is filed as Exhibit
16.1 to this Report.
according to WGN TV News;
Illinois reports April pot sales top previous two months
I had printed the conference call transcript from the 3Q. GroAdvisors appears to be the compilation of the Surna vision. In the same statement there was the expectation for Surna to gain $10 mil additional revenue and pursue a NASDAQ listing.
It would be helpful to know what prompted the resignations of two Board of Directors. My own impression was that those two were accumulating way too many shares for their input.
McDonald is the Surna jockey that shareholders are all counting on.
GroAdvisor looks like a list of companies that would complete the Surna build-out that McDonald has presented for the last year. Is this the one-stop shop that would complete the Surna business model?
Somewhere along the way it was said that Surna would develop relationships that could become acquisitions.
Surna shareholders should expect 1Q results by no later than 45 days after the end of the quarter (Fri May 15th).
Most of the contracts (75% of sq. ft) announced were from Canada where cannabis is legal. The Canadian exchange rate may have fluctuated by 5-10%.
Did contracts get cancelled? Postponed perhaps but Surna customers are probably going to continue to pursue efficiency...
I think Surna will emerge from this and be positioned to grow more than ever...
I added the bold to "suggesting". That word indicates to me that it was obtained legally and there is no mandate. $554,000 at three cents per share is 18,000,000 million shares that would need to be issued to raise that money.
see italic below...
More Boulder-area public companies land PPP funding
Clinical-stage pharmaceutical firm miRagen Therapeutics Inc. (Nasdaq: MGEN) became the latest in a line of publicly-traded companies in the Boulder region that reported receiving funds from the U.S. Paycheck Protection Program in recent weeks.
The Boulder-based maker of genetic therapies received $1.725 million in PPP-backed funds through SIlicon Valley Bank, according to a disclosure to the U.S. Securities and Exchange Commission Monday.
Miragen lost $41.8 million in 2019, according to its latest annual report. However, it has a market capitalization of $37.2 million as of Tuesday, and it is in the middle of a $175 million mixed-shelf fundraiser after a mild stock bump from positive clinical trial results.
On April 20, a subsidiary of Niwot-based Global Healthcare REIT Inc. landed $574,975 from existing lender Colony Bank. While the real estate investment trust isn’t publicly traded, its latest annual report filed to securities regulators shows it had $40.26 million in total assets at the end of 2019, including $36.78 million in property and $447,945 in cash and liquid equivalents.
Two days later, marijuana growhouse engineering firm Surna Inc. (OTCMKTS: SRNA) secured $554,000 through its current lender.
Boulder medical device maker Encision Inc. (OTCMKTS: ECIA) got just under $600,000 last Thursday, while Longmont-based S&W Seed Co. (Nasdaq: SANW), a producer of sunflower and wheat hybrids, landed $2 million in funds two weeks ago.
All of these companies reported receiving the funds before the second round of $310 billion was added to the PPP accounts on Monday.
PPP lending to major companies became a national point of frustration last week, as businesses as large as Shake Shack Inc. (NYSE: SHAK) and Autonation Inc. (NYSE: AN) received tens of millions after applying. Both those companies returned the loans after the Treasury Department put out guidance specifically suggesting public companies with access to investment capital are unlikely to qualify for a PPP loan. It gave public companies until May 7 to pay back at no penalty.
DMC Global Inc. (Nasdaq: BOOM), an oilfield services provider in Broomfield, initially received a $6.7 million PPP loan, but returned it days later.
https://www.timescall.com/2020/04/28/more-boulder-area-public-companies-land-ppp-funding/