**CEA Industries Inc. Announces Non-Binding Letter of Intent to Acquire Specialty Retailer** **

**

CEA Industries Inc., operating under the ticker symbols CEAD and CEADW on the Nasdaq Capital Market, disclosed in a recent Form 8-K filing on December 3, 2024, that they are in negotiations to acquire a prominent specialty retailer and manufacturer. The undisclosed “Target” comprises more than 30 retail locations spread across various regions, boasting a collection of trademarks and intellectual property.

The company articulated its intent to leverage its robust financial position to not only broaden the retail presence of the Target through the acquisition of new stores and establishing de novo outlets but to also enhance the manufacturing arm supplying own-brand and white-label products to other retailers. Through these strategic moves, CEA Industries aims to bolster the foundations of the Target, accelerate growth, and amplify profitability and operational efficiencies. The definitive agreement for the acquisition is anticipated to be signed before the end of the current year, with the closing earmarked for the initial quarter of 2025, subject to routine closing conditions.

The meticulous evaluation of the Target is crucial before the definitive agreement signing, encompassing business, financial, and legal due diligence, alongside regulatory reviews and compliance obligations. A series of steps, including negotiating acquisition documentation and finalizing various agreements like employment contracts and financing arrangements, are part of the acquisition process. Several conditions precedent to closing must be met as well, such as due diligence completion, financial statement reviews, regulatory consents, and the fulfillment of pre-closing commitments.

Nevertheless, the completion of the acquisition remains uncertain, hinging on successful negotiations, fulfillment of covenants, and other closing conditions. The company urges investors to prudently consider the likelihood and timeline of the acquisition before making any investment judgments. A press release detailing the potential acquisition has been issued, attached as Exhibit 99.1 to the Form 8-K filing.

CEA Industries Inc., known for providing supplemental services to the controlled environment agriculture sector, envisions this acquisition as a transformative move aligning with its broader business strategies. The Company aims to fortify its position in the market, embarking on a path of sustained growth and shareholder value creation. However, it cautions investors about the inherent uncertainties and risks involved in such transactions, underlining the importance of assessing the evolving situation. Investors seeking further information can connect with Sean Mansouri, CFA, at Elevate IR via [email protected] or by calling (720) 330-2829.

The Company urges a thorough review of its filings with the Securities and Exchange Commission for a detailed understanding of the risks and opportunities associated with this potential acquisition.

—

*Note: The contents of this press release are forward-looking in nature and subject to uncertainties. The Company disclaims any obligation to update forward-looking statements.*

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Surna’s 8K filing here.

About Surna

Surna Inc designs, engineers, and sells environmental control and other technologies for controlled environment agriculture to state- and provincial-regulated cannabis cultivators in the United States, Canada, and internationally. Its products and services include liquid-based process cooling systems and other climate control systems; air handling equipment and systems; a full-service engineering package for designing and engineering commercial scale thermodynamic systems for cannabis cultivation facilities; and automation and control devices, systems, and technologies used for environmental, lighting, and climate control.