CEA Industries Prices $24M Public Offering On Nasdaq Capital Market

Provider of controlled environment agriculture (CEA) systems, CEA Industries Inc. CEAD CEADW announced the pricing of an underwritten public offering of 5.81 million shares of the company’s common stock and warrants to purchase up to 5.81 millionshares of the company’s common stock at a combined public offering price of $4.13 per share and warrant for aggregate gross proceeds of $24 million.

In addition, CEA Industries has granted the underwriters a 45-day option to purchase up to an additional 871,670 shares of common stock and/or up to 871,670 additional warrants to cover over-allotments, if any. The warrants will have a per share exercise price of $5.00, be exercisable immediately, and expire five years from the date of issuance. The common stock and warrants can only be purchased together in the offering but will be issued separately. The offering is expected to close on February 15, 2022, subject to satisfaction of customary closing conditions.

CEA Industries has received approval to list its common stock and warrants on the Nasdaq Capital Market under the symbols “CEAD” and “CEADW” respectively, and the common stock and warrants are expected to begin trading on February 11, 2022.

The company intends to use the net proceeds for redemption of 1,650 shares of the company’s Series B Preferred Stock, and the remaining proceeds for working capital and other general corporate purposes.

ThinkEquity is acting as sole book-running manager for the offering.