Surna's market cap in the 2ndH of 2020 hovered around $7-9 million. Rarely over 1m shares traded in a day though at $02-$.04 nearly all of that period. Some days there were less than 100K shares of volume.
At that time a capital raise of $500K would have required at least 25m shares. That is over 10% dilution.
Instead, Surna qualifies for a bank loan of $500K for working capital purposes. Is the loan for use as a forward investment to cover new business expenses? Or they can't pay rent?
The filing announcement by Surna - after Friday market close before a 3-day weekend - is curious.
If all is good, Surna would be in a better acquisition position. If all ain't so good, that loan will be the dagger that crushes Surna when the lights go out.
On Tuesday (Monday holiday) the market will place its action. Is this filing a buy or sell signal?
The last shareholder letter was Feb 25 2020. I'm not sure if there has ever been a shareholder meeting. It will be interesting to see what comes next. Good luck to all.
Item 8.01 Other Events.
On February 10, 2021, Surna Inc. (the “Company”) received funding based on a loan agreement entered into on February 9, 2021 with its current bank in the principal amount of $514,200 for working capital purposes. Consistent with the loan provisions, the Company will use the proceeds to meet payroll and benefit expenses as well as for rent and utilities. The loan amount bears interest at 1% and is due on February 5, 2026. The loan may be repaid in advance without penalty. The loan has typical default provisions, including for change of ownership, general lender insecurity as to repayment, non-payment of amounts due, defaults on other debt instruments, insolvency, dissolution or termination of the business as a going concern and bankruptcy.
Market Data 
Markets 
AI
