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Hoping they take this big investment and announce some significant changes, maybe some big contracts and an acquisition
ThinkEquity is the agent that is facilitating this deal.
It is clear that Evergreen and ThinkEquity are together doing this with Surna for them to uplist, and be included in future offerings, as stipulated. ThinkEquity was issued a purchase warrant to buy over 5 million shares at an exercise price of .0693, and will act as an agent going forward to introduce Surna to other institutional investors for capital.
Evergreen Capital Management LLC**
Evergreen Capita Management is the institutional investor.
They have $3 billion of assets under management.
Surna is clearly doing all of this to uplist to a major exchange. That and having $3 mil in cash to do what they need to do.
Increasing authorized shares for capital raises when they uplist, as they stipulations in these documents all have to do with “quality offerings” which translates to capital raises when on a major exchange.
That and for acquisitions using shares.
So much stuff is happening here.
Looks like we missed some stuff:
https://newsfilter.io/a/91f5ab2fc21a0545a8c36c55ae14e23a
They made a $3mil deal with an institutional investor. Looks like this investor had stipulations before giving them $3mil dollar to buy a bunch of shares.
I suggest we all dig into this more and discuss. I’m going to dig and try to find out who this institutional investor is.
It looks like this is part of a plan that also requires a vote by shareholders. They said they have until June 2022 so effect a RS, which again requires a shareholder vote. They didn’t increase the authorized shares yet, as they need a vote.
$SRNA Announces Benching and Racking Line-up
https://finance.yahoo.com/news/surna-cultivation-technologies-announces-benching-131500148.html
1.3mil share on the ask. Someone is putting up a wall to keep it low today.
Are these guys still in the micro grid business? Or did they do a full pivot to Bitcoin?
Reverse split and share increase were not approved by shareholders, so according to transcript it’s not happening.
Looks like they’re trading around 1x equity on their balance sheet.
Expected multiple should be at least 4-5x.
Entering my position tomorrow after watching how market reacts to the report.
Price target is $10
What’s even more interesting is this last quarter that company lost $5mil on $11.3mil in revenue. And they’re trading at this multiple.
Surna is trying to scale up while remaining profitable.
Great revenue this quarter, back to normal pre covid levels, backlog lost some momentum according to the report two projects were pushed back to 2nd half so weren’t logged this quarter.
I dove deeper into the report and they said as of right now they will expect to recognize about $6.7mil of their current backlog next half, so new bookings will be super important to replace this backlog.
Wondering how big those two projects were that were pushed out, maybe they recognize them as backlog next quarter.
If they say 4.5mil in preliminary revenue and over 300k profit, what makes you think it’ll be less than that?
The main numbers to look at now are their backlog numbers and new bookings.
Super low volume today after two consecutive days of high volume buying.
No one is selling.
Earnings coming on first half of august, backlog numbers will be super interesting to see.
The scared money is exiting, those who haven’t done their DD.
The longs here understand where we came from and where we’re going.
Post vote clock is now ticking. Expectations are set, and they now need to deliver.
Good quarter, acquisition announcements, strategic plans laid out, contracts, uplist 2022.
I agree insider buying is probably one of the biggest things besides a great PR. I think this quarters results will be good which should lift stock price. That coupled with contract or acquisition announcements would push it up enough for them to go a capital raise if needed without too much dilution.
In the past they would raise 1 or 2 mil when they did a few of them. I’m hoping they stick with the same conservative raises if any.
They’re definitely going to wait until the end of the year for the RS. They will be using shares to raise capital and acquire companies first, then reduce the outstanding shares to clean up the SS.
Everything passed. Let’s see how they go about this. Preferred share conversion first, then increasing share count in order to acquire companies and raise capital, then RS to get to Nasdaq.
Quarter earnings coming up will be important. Revenue growth and profits are key. Contracts, then announcements for acquisitions.
I imagine they have a pipeline of acquisition targets and plans already in place, which will add to quarterly revenue creating another qualification for Nasdaq.
Your post makes CLSK an even better example. They are a revenue generating company, they went from OTC to nasdaq, ended up being a part of the Bitcoin run that happened, bringing them up to $40. I rode it from $3 to $30. Still far from the uplist price as of today, which proves that even less “legit” companies can still have success going this route.
Who’s to say a company like Surna won’t have more success than CLSK.
How about we watch and see what q2 earnings look like. That will tell all.
Maybe their need for capital raise via shares is unneeded after this quarter.
Why would a company make a decision based solely on stock price? If the depth and material benefit of the acquisition/partnership is strong then deciding not to based o stock price is short sighted.
Surna has experience and expertise in the HVACD sector of the cannabis industry. A company that wants to break into this market would want to work with Surna.
Also, keep in mind that while fundamentals play a part in stock price, it also has a lot to do with psychology. Surna is unknown to many and is getting little attention. Without attention and the excitement that comes with typically cannabis plays, volume is low which leads to lower price and MM manipulation.
Anyone that is smart enough would weigh the material benefits and long term success over anything else in a partnership or acquisition.
Right now share structure is great, but if they are issuing shares that will make the structure less appealing to institutional investors, so issue the shares to get what they need done then RS to clean it up.
You have to read the proxy, otherwise you’re just spewing non sense. Their plan is to r/s by the end of the year, after they issue shares for acquisitions and capital raises.
The r/s is to clean the share structure if they issue shares, so they have a clean structure when the uplist to the NASDAQ.
CLSK is a prime example of this. They issued shares for acquisitions and capital raises while on OTC, then rs to the Nasdaq, now they’re above $10. When they did the rs they were sub $1 to get to get above $3
Bought 50k shares today at .06. Love these cheap shares.
Tony is by far the best leader this company has had. He’s facilitated massive sales growth and reorganization of the company.
You’re either short or just frustrated. Patience.
Hold through the dividend date, then you can plan an exit
8K and proxy just posted. Looks like they didn’t get enough votes to make a decision on the rs and share increase.
Oh yeah, I thought today was Thursday.
Annual meeting tomorrow. Let’s see what happens.
Big week for $SRNA
I listened to it today. Tony is pretty serious about taking SRNA to the next level. Without providing guidance, he said the goal in $20mil in organic revenue for 2021.
Also mentioned acquisitions and partnerships, all stemming from a strategic capital raise and rapid rev growth.
He mentioned the reverse split, but broke down the reasoning and the vision of why it is necessary.
I’m all about the plan. Reverse split or not, but Nasdaq by end of year is their goal.
This would explain a 4K share sell (short) dropping the price 15% so they can rebuy (cover) and make a quick profit, while a 60k share buy only moves it up 1%
How on earth does a 4000 share sell drop Srna 27%
Maybe they’re getting as much info out as they can prior to shareholder meeting so everyone is on the same page for their strategy.
Maybe Q1 results will be another solid PR for their 3rd piece of good news before the meeting.
Just broke it at .091, a break of the 200ma on the weekly would be at .095 then if it holds we’re looking at blue skies.
We need to break through the 50ma resistance on the daily. Testing it 3 days in a row.
It’s between 2:1 and 150:1. The ratio will depend on their share price at that time. If stock price is at .50 when they choose to r/s, then ratio will only be 4:1 to qualify for Nasdaq.
Anyone notice that their bio in their most recent press release says NOTHING about cannabis?
Normally said something about cannabis grow facilities and that they don’t touch the plant even though they work with growers. Now it doesn’t say anything about cannabis.
They must be positioning themselves for a broader non-cannabis market, with a speciality in cannabis.
Indoor farming is the future and is a booming industry. Surna just so happens to make some of the best systems out there due to their experience in a very demanding industry that is cannabis.
Good point. Share value is more important than ever now if they want to see their shareholder meeting through.