BOULDER, CO–(Marketwired – Oct 16, 2014) – Surna Inc. (OTCQB: SRNA), a company that develops, acquires, produces and sells equipment for the legal marijuana industry with a focus on disruptive technology, today announced it has closed a $1.325 million financing.
“Surna is in an aggressive building phase, as we capitalize on the cannabis industry’s fragmentation, by building a commanding technological leadership position at the same time we capture higher market share of an exponentially growing marketplace,” said Surna Chief Financial Officer, Douglas McKinnon. “We see the recent capital infusion, completed without assistance of an investment banker or brokerage, as confirming the market’s confidence in our strategy and investment fundamentals.
“Revenue growth has been strong over the first three quarters this year,” Mr. McKinnon added. “With our increasing investment in technology, R&D, people and multi-channel marketing, today we have a reinforced infrastructure, higher capacity and growing pipeline of disruptive new products targeted to commercial growers being readied for launch in early 2015 — all of which we expect will drive our financial performance forward.”
The recently concluded offering was conducted as a private investment into a public entity under SEC Rule 506 without any investment banking assistance nor placement fees paid. Summary terms of the offering include a ten percent interest promissory note, convertible into common stock at $1 or at a discount to market. The debt has a rolling maturity, across each of its 25 subscribers, of two years from each date of each issuance which stretched from April to September. Further, upon maturity, debt holders are restricted to converting only ten percent of their position into common stock per month, for the initial six months following maturity. Details of the financing can be read in the Company’s Form 8-K which it will file with the SEC shortly.
About Surna Inc.
Led by Tom Bollich, the visionary technologist who co-founded famed gaming company Zynga which ultimately rose to a $10 billion market valuation, Surna’s mission is to acquire intellectual property and scalable operating companies in the nascent, legal marijuana industry with a focus on disruptive technology, equipment and related support services (www.surna.com). Through its wholly owned subsidiary, Hydro Innovations, the Company offers a comprehensive line of commercial and small business indoor agriculture equipment (www.hydroinnovations.com).
The Company represents a pure play on explosive growth in the cannabis industry, while being agnostic as to the escalating proliferation of regulated, commodity cannabis growers & sellers, winners or losers; its business model excludes the production or sale of marijuana. ArcView industry research projects the highly fragmented $2.3 billion US cannabis industry will increase over four-fold to $10.2 billion by 2018.