Surna has updated its organic growth strategy. This revised strategy expands the company’s products and services within the indoor cannabis cultivation market and also brings these offerings to the rapidly growing indoor food production environments.
“Today we are announcing substantial changes to our organic growth strategy, which can be summarized as new markets, new products and services, and new trade name,” Surna Chairman and CEO Tony McDonald said. “New markets are who we seek to serve, including the broader CEA market. New products and services are what we will bring to our customers, which will now include most of the technical infrastructure and services required in an indoor cultivation facility. And our new trade name brands us more accurately and makes us easier to find."
“We are confident these initiatives will allow us to better serve our customers, accelerate the growth we have experienced in the recent past and position us to continue our organic growth. We look forward to serving more customers in the future, as well as to achieving profitable growth of the company.”
Surna will continue to serve its cannabis cultivation customers while also bringing its products and services to the broader CEA market, including the rapidly growing vertical farming market. The company’s existing expertise and equipment offerings can be readily applied in these facilities, and Surna has previously served several such facilities. In the first quarter of 2021 the company entered into a contract with a non-cannabis CEA facility, and the company’s reputation and brand recognition is such that developers of these facilities reach out to Surna directly.
New Products and Services
Surna has historically provided best-in-class environmental control engineering and equipment to its customers. Since 2018 the company has expanded the range of heating, ventilation, air conditioning, and dehumidification (HVACD) products it offers to meet a wider range of customer requirements, and this has been a successful initiative with 100% of its new projects including products developed since that time. Surna will now expand its service and product offerings to encompass many of the key AgTech components required in a cultivation facility, to include the continued expansion of its software-based control technology, SentryIQ. Surna will also continue to add recurring revenue through its preventive maintenance services. Some of these new products and services are provided now, and others will be added in the near future. The company believes that by expanding its offerings it will improve customer success by providing the most complete engineering of the key infrastructure technologies required for a successful operation. Surna’s position will be as an engineer helping the customer to evaluate technical alternatives and providing products from a curated set of technologies. Surna believes this positioning will contribute to the company’s customer acquisition success by bringing itself into the customer relationship at the earliest possible moment.
New Trade Name
This updated growth strategy is comprehensive enough that the company has adopted the trade name Surna Cultivation Technologies to reflect its products and services more accurately and to make it easier for new customers to find. The company’s trading symbol “SRNA” and incorporation name will not change.
“With the comprehensive improvements in the front-to-back range of products and services Surna will be providing, it is time to update Surna’s brand,” Vice President of Marketing Communications Jamie English said. “It is our intention to ensure our customers can find us more readily when seeking guidance at the very beginning of their project and retain our services after start-up.”