Surna Cultivation Technologies Secures Letter of Intent from Greene Brothers Farm for Potential $10M Revenue
The agreement includes five phases of development with the first phase Contract Sign for $1.2 million
Louisville, Colo., June 21, 2022 (GLOBE NEWSWIRE) — CEA Industries Inc. (NASDAQ: CEAD, CEADW) (“CEA Industries” or the “Company”) subsidiary, Surna Cultivation Technologies LLC (“Surna”), a leader in farming systems engineering and technologies in a controlled environment (CEA), today announced it has entered into a letter of intent to provide mechanical engineering products and services in five phases with Greene Brothers Farm, Inc., a family farm that is developing a site for 26 acres exclusively for indoor cannabis cultivation. CEA Industries expects contract revenue of approximately $10 million over an estimated period of two to three years. The initial contract, valued at $1.2 million, is for the first phase of products and services and is expected to be completed in early Q4 2022.
The project is building a new, fully covered cannabis park located in Lockeford, California, between Stockton and Sacramento, on a 26-acre property once used as a vineyard and wine distribution center. The Greene Brothers Farm Cannabis Park is an ambitious major expansion of the Greene Brothers operations which are currently located on a 200 acre farm in Mendocino County. Cannabis Park will be the new headquarters of the Greene Brothers and will include cultivation, manufacturing, off-window retail and distribution. When completed, Cannabis Park will utilize 371,918 square feet of new structures.
“After a few years of planning and working with San Joaquin County, we are beyond excited to realize the dream that began in 2020,” said Aaron Greene, co-founder and CEO of Greene Brothers Farm, Inc. We look forward to creating hundreds of jobs and funding various community improvements that our new neighbors will benefit from through revenue generated from our Cannabis Park and Farmacy Phactory brands.We partnered with Surna because we know they can provide the exceptional engineering, design and equipment we require quickly and efficiently throughout every phase of development.
It is estimated that phase 1 will be online by the fourth quarter of this year. For this first phase, Surna will provide mechanical engineering services which will include the design of exhaust air filtration systems to remove odors as well as the supply of air conditioning systems, its EnviroPro air treatment equipment ™ and Surna by Anden dehumidifiers. Phases 2 and 3 are expected to complete in 2023, while Phases 4 and 5 are expected to complete in 2024.
“We are proud to have been selected by Greene Brothers Farm for this multi-million dollar, multi-phase development project,” said Tony McDonald, President and CEO of CEA Industries Inc. may this relationship be a win-win for both of us and we will strive to make this Greene Brothers Farm Cannabis Park an exemplary representation of these types of projects for others in this industry.
About CEA Industries Inc.
CEA Industries Inc. (www.ceaindustries.com), is home to industry leaders in controlled environment agriculture, with complementary and adjacent businesses added to its portfolio as they align with corporate growth initiatives. As the global indoor growing environment continues to grow, CEA Industries was created to welcome companies that support these ecosystems.
Based in Louisville, Colorado, CEA Industries knows that growth is a team sport. Through future partnerships and mergers and acquisitions, both financial and strategic, CEA Industries will continue its search for companies that bring accretive value to its customers and investors.
About Surna Culture Technologies
Surna Cultivation Technologies (www.surna.com), is a leader in the design and technology of CEA facilities. We provide full-service licensed architectural and mechanical, electrical and plumbing (MEP) engineering services, carefully selected HVACD equipment, proprietary control systems, air disinfection products, lighting, benches and shelves. Our team of project managers, licensed professional architects and engineers, technology and horticulture specialists, and systems integration experts help our customers by designing with precision for their unique applications. Through our partnership with a network of certified service contractors, we provide installation and maintenance services to aid in smooth construction and optimal facility performance. We have been providing solutions to indoor growers for over 15 years and have served over 800 growers, over 200 of which are large commercial projects.
Based in Louisville, Colorado, we leverage our industry experience to provide our customers with value-added solutions that help them improve overall crop quality and yield, optimize energy efficiency and and meet evolving state and local codes, permits and regulatory requirements. .
About Greene Brothers Farm, Inc.
Greene Brothers Farm has been a family farm for over 22 years. The two co-founders, Aaron Greene and Mark Greene, have over 25 years of experience in the cannabis industry, including business development and management practices. Aaron has been growing cannabis for over 25 years and has an in-depth understanding of design and large-scale production in cannabis facilities, as well as the development of rare cultivars for specific indoor/outdoor greenhouse applications. Mark has also been growing cannabis for over 25 years and has extensive knowledge of all aspects of growing and processing cannabis, including breeding, optimizing nutrients, aligning soil conditions, specific expertise in cultivars, the production of concentrates and an in-depth knowledge of cannabis. the seed industry for sale. With in-depth knowledge of all aspects of cannabis production, including engineering, facility design, plant management techniques in large-scale agriculture, as well as best practices in production and management. cannabis extraction, the Greene brothers worked together and applied this wealth of knowledge. and his expertise in Greene Brothers Farm, creating a successful cannabis cultivation, manufacturing and marketing business.
Safe Harbor Statement
This press release contains forward-looking statements relating to future events. These forward-looking statements are subject to the uncertainties inherent 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 the “Risk Factors” section of our reports. annual and quarterly filings with the Securities and Exchange Commission (“SEC”) and subsequent filings with the SEC. Please refer to our filings with the SEC for a more detailed discussion of risks and uncertainties associated with our business, including, but not limited to, risks and uncertainties associated with our business prospects and the prospects of our existing customers. and potentials; the uncertainty inherent in product development; regulatory, legislative and judicial developments, particularly those related to changes in and enforcement of cannabis laws; increasing competitive pressures in our industry; and relationships with our customers and suppliers. Except as required by 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 The CEA Industries Inc. website has been provided as a convenience, and information contained on this website is not incorporated by reference into this press release.
Vice President, Marketing Communications
Sean Mansouri, CFA