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Surna Inc (OTCMKTS:SRNA) Gets A Fresh Start With New Management

Surna Inc (OTCMKTS:SRNA) Gets A Fresh Start With New Management
Written by
Richard Sandle
Published on
August 22, 2017
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As the cannabis industry continues to grow with more states in the U.S., and foreign countries changing their laws to legalize cannabis, emerging companies have an expectation of growth commensurate with that of the industry as a whole. Surna Inc (OTCMKTS:SRNA) has not met its expectation, and is therefore undergoing some drastic changes in order to move forward.First, some background on the Company, Surna Inc is based in Boulder, Colorado and develops innovative technologies and products that monitor, control and/or address the energy and resource intensive nature of indoor cannabis cultivation enabling companies to both improve product quality and yield while significantly reducing energy and other resource consumption. The company’s principal revenue stream is based on its main product offerings – supplying industrial technology and products to commercial indoor cannabis grow facilities.Surna Inc has made some major changes to its senior management team. On August 17, 2017, the company announced the appointment a new Chief Executive Officer, a new Chief Financial Officer, and a new Head of Sales.The Board of Directors appointed Chris Bechtel as the Company's new President and Chief Executive Officer. Mr. Bechtel joined Surna's Board of Directors on May 31, 2017. Mr. Bechtel succeeds and replaces former CEO and President Trent Doucet, who assumed a new role with the Company. Mr. Bechtel has over 30 years' experience, as an executive, entrepreneur and consultant, managing and advising businesses from start-ups to divisions of large Fortune 500 companies. Since 2015, Mr. Bechtel has been the principal of Bechtel Consulting, LLC, which provides consulting services in mergers and acquisitions, financial and investment analysis, capital markets, turnarounds and special situations. He became involved in the cannabis industry three years ago as a private investor, consultant and advisor. Timothy J. Keating, Chairman of the Board stated:

"We are delighted to welcome Chris Bechtel and his new management team to Surna, and we thank Trent Doucet for his many contributions over the past two years and, equally importantly, for his desire to help the company grow through the expansion of sales activities in California."

The Board also appointed Paul Kelly as the Company's Chief Financial Officer and Treasurer. Mr. Kelly has over 30 years of senior financial experience including significant experience with both emerging and larger companies. He has provided financial and transactional services to emerging companies. In addition, Surna hired Camille Lupton as its new Vice President of Sales and Project Management. Ms. Lupton has over 30 years of sales, sales leadership, project management and operational management experience.Other hires made by the company include Jaime Loos as its new Director of Project Management. Ms. Loos is a seasoned project manager with over 15 years' experience with companies such as Omni, Weatherford International and NASA. James Holmstead was hired as the Company's Director of Operations and Product Development. Mr. Holmstead has worked operations and production for over 15 years, most recently with Eaton Corporation's lighting and hydraulics divisions.The Company also made changes to the Board of Directors. On May 31, 2017, Surna Inc announced the appointment of J. Taylor Simonton and Chris Bechtel as Independent Directors. These appointments filled two vacancies on the Board, including the vacancy created by the recent resignation of Morgan Paxhia.On the financial side of the Company, the Q2 quarterly report for the period ending June 30, 2017 indicates revenue for the quarter was $1,742,000 compared to $1,891,000 for the three months ended June 30, 2016, a decline of $149,000, or 8%. The decline in revenue is mainly attributable to previously announced current sales contracts, which were not in place as of June 30, 2016 and obtained at an earlier stage in the customers' process.The Company realized a net loss of $1,073,000 for three months ended June 30, 2017 as compared to a net loss of $704,000 for three months ended June 30, 2016, an increase of $369,000, or 52%.The balance sheet shows a deficit in working capital (current liabilities in excess of current assets) of $778,000 as of June 30, 2017 as compared to a working capital deficit of $2,860,000 as of December 31, 2016. As of June 30, 2017 the Company’s cash balance was $1,353,000.

Since our last review of Surna Inc, its stock has been trading in a range with a resistance level at about $.1490, and support at about $.1047. The stock is currently trading at $.1211. Current market capitalization stands at $21.81 million, on 183.29 million shares outstanding as of August 18, 2017. In spite of its current woes, SRNA stock has managed to avoid a severe downtrend. The fact that Surna Inc is taking such drastic steps to capitalize on the emerging cannabis industry indicates its commitment to succeed. New management is certainly a step in the right direction. We will be updating our subscribers as soon as we know more. For the latest updates on SRNA, sign up below!For the full story, check out our complete coverage on SRNA.Image courtesy of pipedreemz1 via FlickrDisclosure: We have no position in SRNA and have not been compensated for this article.

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