BOULDER, CO--(Marketwired - Apr 1, 2014) - Surna Inc. (OTCQB: SRNA), a company focused on the acquisition of cannabis industry related intellectual property, disruptive technologies, assets and scalable operating companies, today announced it has signed a definitive agreement to acquire Hydro Innovations ("Hydro").
Boulder, Colorado-based Hydro is a leading designer, manufacturer and distributor of proprietary, state-of-the-art indoor climate control systems such as chillers, lights, reflectors and irrigation systems designed for cannabis and other indoor agriculture markets. Founded in 2007, Hydro offers a complete line of indoor cannabis growing equipment and has become the pre-eminent provider of advanced, water-chilled cooling systems that provide specific cooling and humidity controls for personal and commercial level cannabis cultivation facilities.
With a robust R&D capability, Hydro established itself commercially as a producer of disruptive technologies with the successful introduction of its "Banks Chillers™." With cooling being as critical to growing marijuana as the seed itself, Hydro's Chillers offer a breakthrough product line that:
- Can be installed and purchased for 20 to 40 percent less than the price of conventional HVAC and 65 percent cheaper than traditional water chilled solutions
- Operates with 20 to 30 percent more energy efficiency than the most sophisticated commercial HVAC systems on the market.
Closing is expected in the second calendar quarter of 2014, and is contingent upon satisfactory completion of a FY 2013 audit, and the Board of Director's approval of an independent valuation, among other customary conditions. Prior to Closing, the Company has exclusively licensed all of Hydro's technology, IP and product lines, in perpetuity, for commercial sale and distribution for indoor gardening applications.
Commenting on the pending acquisition and his recently announced appointment to Surna Chief Executive Officer and member of the Board of Directors, Tom Bollich, said, "Not since I helped co-found Zynga back in 2007, have I seen such an unprecedented opportunity to quickly capture market share of an industry still in its infancy yet offering the promise of explosive value creation.
"Hydro Innovations has a solid market position, rapidly growing revenue, its founders' industry leading R&D and a powerful technology platform. Combined with our acquisition last week of Safari's IP portfolio, Surna today has the people, technology and market position to jump start our quest to dominate the equipment, support and services side of the global cannabis industry."
Terms of the all-cash and debt assumption transaction are detailed in the Company's filing with the SEC on Form 8-K scheduled for later this week.
About Surna Inc.
Led by Tom Bollich, the visionary technologist who co-founded famed gaming company Zynga which ultimately rose to a $10 billion market valuation, Surna's mission is to acquire intellectual property and scalable operating companies in the nascent, legal marijuana industry with a focus on disruptive technology, equipment and related support services.
The Company represents a pure play on explosive growth in the cannabis industry, while being agnostic as to the escalating proliferation of regulated, commodity cannabis growers & sellers, winners or losers; the Company's business model excludes the production or sale of marijuana. Industry analysts project the highly fragmented $2.3 billion US cannabis industry will increase over four-fold to $10.2 billion by 2018.
Safe Harbor Statement
This news release contains statements that involve expectations, plans or intentions (such as those relating to future business or financial results, new features or services, or management strategies) and other factors discussed from time to time in the Company's Securities and Exchange Commission filings. These statements are forward-looking and are subject to risks and uncertainties, so actual results may vary materially. You can identify these forward-looking statements by words such as "may," "should," "expect," "anticipate," "believe," "estimate," "intend," "plan" and other similar expressions. Our actual results, such as the Company's ability to complete, consolidate and commercialize its acquisition of IP, assets and operating companies, could differ materially from those anticipated in these forward-looking statements as a result of certain factors not within the control of the company such as a result of various factors, including future economic, competitive, regulatory, and market conditions. The company cautions readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. The company disclaims any obligation subsequently to revise any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.