Surna, Inc. (OTCMKTS:SRNA) Up by a Quarter
Yesterday’s session was probably a surprise to Surna, Inc. (OTCMKTS:SRNA) shareholders. After barely trading over the past couple of months, SRNA suddenly shifted over 650 thousand shares over the last session, climbing 25% in the process. The reason for this sudden surge, however, is not too clear.
SRNA is a hydroponic equipment company that rode the early 2014 marijuana stock craze hard. However, the ride was short-lived and SRNA spent the stretch between late March and November dropping with little pause, from $7.85 to $0.49 per share.
The company reported the following as of Q2 of this year:
- $214 thousand in cash
- $62 thousand in current liabilities
- $346 thousand in Q2 revenues
- $2.1 million in Q2 net loss
This was before SRNA posted audited financials for Hydro Innovations LLC – the company it acquired in late July. Hydro Innovations brought under $20 thousand in cash, $300 thousand in liabilities and an annual 2013 net loss of $78 thousand to the table.
The company had five dollars in cash as of its previous quarterly and as an April 24 letter to shareholders informed, it transitioned into ‘an active, publicly traded company’ in the first half of 2014, following a series of convoluted mergers, culminating in the Hydro Innovations acquisition. To secure operating capital the company launched an offering that stretched between April 1 and October 16. Under this offering, convertibles for the total of $1.32 million were issued, all converting at the lesser of $1 per share or a 20% discount from an averaged 30-day price prior to conversion.
Yesterday’s run is a bit of a mystery, considering there has been no new PR, filings or media exposure for SRNA. There was one positive article on the company published by Microcap Daily on Saturday but it’s questionable how much influence that could have had. Considering the stock’s year-to-date performance, it seems unlikely that even the upcoming elections tomorrow and the hopes of pot investors for a more liberal stance on the plant, SRNA will manage to maintain its volume and price movement.
