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Surna Inc (OTCMKTS:SRNA) Poised To Break Through Resistance

Surna Inc (OTCMKTS:SRNA) Poised To Break Through Resistance
Written by
Richard Sandle
Published on
November 7, 2017
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The cannabis industry is in a situation whereby much of the demand for marijuana that has existed for some time has been satisfied by illegal providers. These illegal providers would carve out territorial monopolies for themselves via illicit practices.In this illegitimate market the normal forces of business competition do not apply. Consequently, efficiency is not as important a factor in generating profits.Now that marijuana is becoming legal, anyone can enter the market, and must adhere to legal business practices. Therefore, achieving competitive advantages in an industry for which its demand is transferring over from what used to be an illegal market, will require that cannabis businesses operate as efficient as possible in order to gain as much market share as possible early in the “legal” industry’s development.Surna Inc (OTCMKTS:SRNA) is well positioned to capitalize on this phenomenon.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.On August 30, 2017 Surna Inc. announced the launch of a new website and brand strategy to reflect Surna's rising position as a go-to solutions provider and the increasing impact its technology is having on the cultivation industry. Through its expertise and technology developments in climate control and biosecurity systems, Surna Inc. has become a leader for indoor growth cultivation.For engineers and contractors responsible for building indoor grow facilities, the new user-friendly website will make it especially easy to quickly find relevant information on products, services and implementation strategies for optimizing heating, cooling and water strategies. Jamie English, Director of Marketing for Surna commented:

"We have rapidly advanced from a startup to a publicly-traded agtech company with a team of experts and leading industry partners, and we want the Surna brand to reflect our growth."

Brandy Keen, Surna's Technical Advisor and Co-founder, spoke on the topic of cannabis energy and water conservation solutions that produce greater yield at three conferences in October including:

  • Cannabis World Congress and Business Expo (CWCBExpo) in Boston on Oct. 5
  • Sustainability Symposium in Denver on Oct. 16
  • CannaGrow Expo in Denver on Oct. 28

Keen works with Surna clients to guide them on industry best practices and practical ways that they can use to conserve energy cost effectively without sacrificing quality. This value-added approach includes explaining complex and rapidly changing regulatory environments-and how to successfully navigate them, along with sharing best practices and state-of-the-art knowledge in the facility design process.In the United States, an estimated $6 billion of electricity consumption (about 1% of national electricity use) is used by the cannabis industry. In her presentations, Keen describe six key ways to conserve energy. Surna CEO Chris Bechtel stated:

"When cultivators improve on energy and water conservation, the entire industry wins collectively in an environmentally sensitive way. Surna is committed to being a thought leader in this ongoing effort,"

SRNA stock continues to trade in a range since about May 10, 2017 with a resistance level near $.1490, and support close to $.0971. The stock is currently trading near the top of the range at $.1430 off of a recent sharp upward move from the support level starting on October 23, 2017. The stock is showing strong indication of breaking through the resistance level.Financial reporting remains unchanged from our last review of SRNA on August 22, 2017. Current market capitalization stands at $27.35 million, on 191.27 million shares outstanding as of November 6, 2017In California, the legal sale of recreational marijuana will be commencing in January of 2018. If what happened in Nevada when its recreational marijuana laws when into effect are any indication of what is to be expected, 2018 will be a good year for the cannabis industry as whole, including Surna Inc.We will be updating our subscribers as soon as we know more. For the latest updates on SRNA, sign up below!Image courtesy of Marijuana CashCrop via FlickrDisclosure: We have no position in SRNA and have not been compensated for this article.

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