Surna Inc (OTCMKTS:SRNA) has been around for a while, periodically becoming a momentum favorite as an equipment supply story attached to the cannabis space. The company has had a number of strong financial reports, which continually stoke the flames of the story. At this point, we’re looking at a company growing revs at nearly 34% with a bit of a breakout underway on the chart over the past few days, so it’s definitely worth keeping an eye on.
In addition, the company just announced that it completed a private placement offering of investment units, at a price of $0.12 per unit, with certain accredited investors to pile fresh capital into the coffers. According to its most recent release, “the Company issued a total of 14,734,000 units for aggregate proceeds of $1,768,080. No placement agent or broker commissions or fees were paid in connection with the offering. Each unit consisted of one share of common stock and one three-year warrant for the purchase of one share of common stock at an exercise price of $0.20 per share.”
Surna Inc (OTCMKTS:SRNA) promulgates itself as a company that designs, develops, manufactures, and distributes systems for controlled environment agriculture (CEA). It offers chillers, lights, reflectors, and irrigation systems; Hybrid Building that uses the sun as its primary light source; air sanitation technology for mold and mildew risk mitigation to cultivators; and mechanical, electrical, and plumbing services.
The company serves cannabis cultivation facilities; and other indoor agricultural facilities, including organic herb and vegetable producers. In short, Surna Inc develops innovative technologies and products that monitor, control and address the energy and resource intensive nature of indoor cannabis cultivation. Currently, the company’s revenue stream is based on its main product offerings – supplying industrial technology and products to commercial indoor cannabis grow facilities.
Headquartered in Boulder, CO, Surna’s diverse engineering team is tasked with creating novel energy and resource efficient solutions, including the company’s signature water-cooled climate control platform.
According to company materials, “Surna’s engineers continuously seek to create technology that solves the highly specific demands of the cannabis industry for temperature, humidity, light and process control. Surna’s goal is to provide intelligent solutions to improve the quality, the control and the overall yield and efficiency of controlled environment agriculture. Though its clients do, the company neither produces nor sells cannabis.”
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As noted above, SRNA is an on-again, off-again momentum story on the equipment side of the cannabis patch. The stock has been breaking out in recent days as the company reports the successful completion of a private placement capital raise.
“Surna has recently expanded both its sales and project management teams with key hires, with the objective of ramping organic growth over the next 24 months, and this private placement will help further accelerate that growth plan,” stated Chris Bechtel, the Company’s Chief Executive Officer. “We are also gratified that a number of our existing stockholders expressed continued confidence in the plan by increasing their investments in the company, and we believe it is also noteworthy that Surna’s own management team subscribed for 18% of the units in this offering,” added Mr. Bechtel.
We’ve witnessed 38% added to share values of the name over the past month of action. This is emblematic of the stock. SRNA has a history of dramatic rallies. Furthermore, the name has registered increased average transaction volume recently, with the past month seeing a bit less than 150% above its longer-run average levels.
At this time, carrying a capital value in the market of $34.5M, SRNA has a stash ($1.3M) of cash on the books, which is balanced by virtually no total current liabilities. SRNA is pulling in trailing 12-month revenues of $6.9M. In addition, the company is seeing major top-line growth, with y/y quarterly revenues growing at 33.8%. You can bet we will update this one again as new information comes into view. Sign-up for continuing coverage on shares of $SRNA stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in $SRNA, either long or short, and we have not been compensated for this article.