CEA Industries announced that its board unanimously adopted a limited duration stockholder rights agreement and amended and restated bylaws. The board adopted the rights plan and the amended and restated bylaws following the formation of a stockholder group by YZILabs Management that seeks control of the company. As previously confirmed by the company, YZi Labs has filed a preliminary consent statement that seeks control of a majority of the board. On December 23, YZi Labs filed an amended Schedule 13D with the SEC reporting the formation of a group with seven proposed director nominees. The amended Schedule 13D reports that the YZi Labs Group holds 7% of the company's currently outstanding common stock. Moreover, the YZi Labs Group holds warrants that allow it to significantly increase its common stock holdings with 61 days' notice.
CEA Industries Inc. is a growth-oriented company focused on building businesses in regulated consumer markets. It focuses on the Canadian nicotine vape industry. The Company, through its subsidiary, Surna Cultivation Technologies LLC, is focused on selling environmental control and other technologies and services to the Controlled Environment Agriculture (CEA) industry. Its service and product offerings include floor plans and architectural design of cultivation facilities; licensed mechanical, electrical, and plumbing (MEP) engineering of commercial scale environmental control systems specific to cultivation facilities; process cooling systems and other climate control systems; air handling equipment and systems; benching and racking solutions for indoor cultivation; and others. The Company also provides capital, operational expertise, and strategic resources to accelerate retail expansion, strengthen e-commerce infrastructure, and drive value creation in performance-driven sectors.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
