CEA Industries Inc. Announces Reverse Stock Split to be Effective June 7, 2024; Publicly Traded Warrant Adjustment
June 04 2024 - 4:15PM
CEA Industries Inc. (the “Company”) (NASDAQ: CEAD) announced that
it approved a 1-for-12 reverse stock split of the outstanding
shares of common stock and corresponding adjustment to the publicly
traded common stock purchase warrants.
Pursuant to the reverse stock split, each twelve
(12) shares of the Company’s outstanding common stock, $0.00001 par
value per share, will be automatically combined and converted into
one (1) outstanding share of common stock, $0.00001 par value per
share. In addition, the current publicly traded common stock
purchase warrants will be adjusted under the current terms of the
warrant agreement so that each 12 warrants will be entitled to
acquire one share of common stock at a revised purchase price per
share of $60.00.
The Company will continue to be subject to
periodic reporting and other requirements under the Securities and
Exchange Act and the common stock and common stock purchase
warrants will continue to be listed on the Nasdaq Capital Market
“CEAD” and “CEADW,” respectively.
Tony McDonald, Chairman and CEO of the Company,
indicated that the purpose of the reverse stock split is to
maintain the Company’s listing of its common stock and publicly
traded common stock purchase warrants on the Nasdaq Capital Market.
The Company, however, cannot assure that the price of its common
stock after the reverse stock split will reflect the reverse split
ratio, that the price per share following the reverse split will be
maintained for any period of time, or that the price will remain
above the pre-split trading price.
Shares of the Company’s common stock have been
assigned a new CUSIP number (86887P309). The common stock purchase
warrants will retain their current CUSIP number.
The common stock is expected to begin trading on
a split-adjusted basis, beginning on Friday, June 7, 2024.
No fractional shares will be issued and any
fractional shares resulting from the reverse stock split will be
rounded up to the next whole share. Stockholders holding shares of
CEAD common stock at registered brokerage firms should consult with
their broker for further information on their account. Stockholders
who hold shares with our transfer agent will receive information in
the mail about their accounts over the next few days.
About CEA Industries Inc.
CEA Industries Inc. (www.ceaindustries.com)
provides a suite of complementary and adjacent offerings to the
controlled environment agriculture industry. The Company’s
comprehensive solutions, when aligned with industry operators’
product and sales initiatives, support the development of the
global ecosystem for indoor cultivation.
Forward Looking Statements
This press release may contain statements of a
forward-looking nature relating to future events. These
forward-looking statements are subject to the inherent
uncertainties in predicting future results and conditions. These
statements reflect our current beliefs, and a number of important
factors could cause actual results to differ materially from those
expressed in this press release, including the factors set forth in
“Risk Factors” set forth in our annual and quarterly reports filed
with the Securities and Exchange Commission (“SEC”), and subsequent
filings with the SEC. Please refer to our SEC filings for a more
detailed discussion of the risks and uncertainties associated with
our business, including but not limited to the risks and
uncertainties associated with our business prospects and the
prospects of our existing and prospective customers; the inherent
uncertainty of product development; regulatory, legislative and
judicial developments, especially those related to changes in, and
the enforcement of, cannabis laws; increasing competitive pressures
in our industry; and relationships with our customers and
suppliers. Except as required by the federal securities laws, we
undertake no obligation to revise or update any forward-looking
statements, whether as a result of new information, future events
or otherwise. The reference to CEA’s website has been provided as a
convenience, and the information contained on such website is not
incorporated by reference into this press release.
Investor Contact:
Sean Mansouri, CFAElevate IRinfo@ceaindustries.com(720)
330-2829
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