Surna Inc (OTCMKTS:SRNA) provides energy efficiency, software and other supporting services to the legal medical and recreational marijuana industry, a nascent market in the U.S. The company has remain a target of suspicious paid stock promotion in the past. However, investment in Surna gets support from its revenue growth and its position in the rapidly growing industry. The company also owns valuable intellectual property. Here, it is important to mention that Surna is an ancillary firm to the growing marijuana market in Colorado, but itself never touches marijuana.
The details
Surna is a result of a reverse IPO process. It can be defined as a process through which a firm that intends to become public merges or buys with a defunct publicly traded entity to basically hijack its ticker symbol. The process do not relates with the length, expense and regulatory watch of the traditional IPO process. The “old-Surna” collapsed when its sole shareholder sold his entire holdings in the company on March 24, 2014. The new company was formed on March 31, 2014 when the current management introduced the ticker symbol “SRNA.”
The dismal picture
Surna stock made a high of $8.73 a share on the day when new Surna was created. That was the 52-week high of the company after which SRNA share price have continuously declined and eroded 98% of its market value. The only month in last year when the company posted gains was June 2014 when the stock surged $0.01 per share. However, the financials and the prospects of a growing marijuana industry instills hope to see a better performance by the company in near future.
The problems
There is not lot more information available on Surna. There is no analyst’s coverage on the stock and very little has been known about the company. In an article last September, Alan Brochstein released an interview with Tom Bollich on popular website ‘Seeking Alpha’. Bollich is the current CEO of Surna. He said that all signs point to cannabis as becoming the next big industry.
In last trading session, Surna stock price declined 3.03% to close at $0.160.
