CEA Industries registers $18M stock offering

LOUISVILLE — CEA Industries Inc. .(OTCQB: SRNA), a manufacturer of growhouse equipment for controlled-environment agriculture that was formerly known as Surna Inc., is seeking to raise just over $18.3 million through a new stock offering, the company disclosed this week to the U.S. Securities and Exchange Commission.

“Historically, our revenue stream is derived primarily from supplying our products, services and technologies to commercial indoor facilities that grow cannabis,” the company said in its S-1 filing. “However, we have served facilities growing other crops and we intend to pursue such additional CEA verticals.”

The funds raised through the stock offering will help provide working capital as CEA pursues those additional verticals. 

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The latest offering comes on the heels of a similar, roughly $2.7 million raise in September, CEA reported in its disclosure. Those proceeds were to be used for “general corporate purposes and working capital.”

CEA, which has a staff of about 30, has traveled a bumpy road in search of profitability in recent years.

After posting the second-highest revenue total in company history and regaining a position in the black in the second quarter of 2021, sales shrunk quarter-over-quarter in the next period, and CEA posted a third-quarter loss. 

The company’s stock — a penny stock traded over the counter — has seen its price fluctuate quite a bit over the past year with a 52-week high of 22 cents and a low of 1 cent. The stock closed Thursday trading at just under 4 cents.