Cea Industries Inc. · NASDAQ:BNC
Cea Industries — Surna — Investor Presentation (February 2015)
32 slides from Cea Industries's investor presentation, Feb 27, 2015
Slide 1: Surna: Engineering Solutions for Cannabis
== SURNA Engineering Solutions for Cannabis February 2015 Document No. At
Slide 2: Safe Harbor
SAFE HARBOR This news release contains statements that involve expectations, plans or intentions (such as those relating to future business or financial results, new features or services, or management strategies) and other factors discussed from time to time in the Company's Securities and Exchange
Slide 3: Statement About Cannabis
STATEMENT ABOUT CANNABIS The use, possession, cultivation, and distribution of cannabis is prohibited by federal law. This includes medical and recreational cannabis. Although certain states have legalized medical and recreational cannabis, companies and individuals involved in the sector are still
Slide 4: Introducing Surna
INTRODUCING SURNA Innovation for a Growth Sector. Surna has established a multi-disciplined engineering team, providing an unrivalled ability to develop innovative and patentable technologies for the cannabis sector. Growing Revenue from an Established Product Foundation. = Surna is currently sellin
Slide 5: Cannabis: Strong Growth Prospects
CANNABIS: STRONG GROWTH PROSPECTS Medicinal Cannabis Growth is Accelerating. Medicinal cannabis revenue is estimated to increase at an annual rate of close to 40% to $8.9 billion by 2016 (see slide 25)." Current Medicinal Use of Cannabis is Significant. Thirty-four states in the U.S. (see below) hav
Slide 6: A Closer Look at Cannabis
A CLOSER LOOK AT CANNABIS Therapeutic History of Cannabis is Well Established. — For this specific patient population [resistance to antiepileptic medicine] ... high CBD and low THC strains — usually consumed orally in children — appear to be effective.4 Demographics Favor Market Growth. Demand for
Slide 7: Considerations in Growing Cannabis
CONSIDERATIONS IN GROWING CANNABIS Failure is Not an Option. — Since marijuana is the largest cash crop in the United States - more valuable than corn and wheat combined’ — systems need to be in place to prevent the loss of even one crop. Cannabis Cultivation is an Energy Hog. The high intensity lig
Slide 8: What It Takes to Grow Cannabis
WHAT IT TAKES TO GROW CANNABIS Industrial Temperature Control. Systems need to process 4,500 — 6,000 BTUs per 1,000 watt light. | airtanater ff High Intensity Lighting. Lighting can produce 75 watts of energy per square foot. Plant Nutrient Supply. Nutrient delivery needs to be handled under certain
Slide 9: Surna Is Currently Supplying...
SURNA IS CURRENTLY SUPPLYING... Industrial Temperature Control. Surna Chillers Air Handler || High Intensity Lighting. Sura Reflectors Active Nutrient Supply. Surna Chillers Tightly Controlled Humidity. Surna Dehumidifiers Active Monitoring and Environmental Stability. Software platform SURNA
Slide 10: The Cannabis Supply Chain
THE CANNABIS SUPPLY CHAIN Large Energy Requirements. A 2012 paper indicated that cannabis production consumed 1% of the electrical grid in the U.S.°— just 15 states allowed cultivation at the time. The demand has undoubtedly increased in the last three years. Active Management of Cultivation is Requ
Slide 11: Where's the Need for Innovation?
WHERE’S THE NEED FOR INNOVATION? More Efficient Lighting. Incumbent technology produces large amounts of unwanted heat and non-useful/wasted light that cannot be utilized by plants, resulting in much wasted energy. More Effective Temperature Control. Current air conditioning (A/C) technology is more
Slide 12: Surna's Technology Roadmap
SURNA’S TECHNOLOGY ROADMAP Hydro Cooling Platform (Generation One). In 2015, the Company plans to expand the sales of Surna’s Hydro Cooling platform (Chiller and Reflector), especially with the introduction of the Surna Reflector to the market. New Hybrid Complex (Generation Two). A hybrid facility
Slide 13: Gen One: Hydro Cooling Platform
GEN ONE: HYDRO COOLING PLATFORM What is Generation One? Surna’s Hydro Cooling Platform (Chiller and Reflector). The Chiller Provides Efficiency, Cost Advantages, Redundancy. Surna’s chillers are modular and utilize water for heat transfer (water holds 4x more heat than air) resulting in backup redun
Slide 14: Gen Two: Hybrid Facility
GEN TWO: HYBRID FACILITY What is Generation Two? A hybrid facility utilizes novel technologies to combine the best of greenhouse and indoor growing designs. Provides Environmental Control Capabilities. A structure that combines the ability to use passive inputs (sunlight, passive cooling) and active
Slide 15: Gen Three: Monitoring/Big Data
GEN THREE: MONITORING/BIG DATA What is Generation Three? Software platform State Regulatory Requirements. State regulatory requirements stipulate the need for comprehensive monitoring and tracking systems. Data Generation — Big Data. The generation of data resulting from the required software system
Slide 16: Gen Four: Automation/Integration
GEN FOUR: AUTOMATION/INTEGRATION What is Generation Four? The final technological generation utilizes automation and integration to provide the most efficient cannabis cultivation process. Significant Improvement in Margins. Currently, cannabis cultivation is labor intensive. One of the best ways to
Slide 17: Expanding Intellectual Property
EXPANDING INTELLECTUAL PROPERTY Driven by An Experienced Engineering Staff. Surna has more than ten engineers on staff to continue to drive innovation. Aggressively Supporting Current Patent Applications. Surna has nine patent applications in process with the USPTO. Continue to Produce Innovative Id
Slide 18: Surna Has Expanding Revenues
SURNA HAS EXPANDING REVENUES Revenue Standout in Cannabis. A recent query from CaplQ indicated Surna ranked seventh out of 60 public cannabis companies — from the U.S. and around the world — based on a subset of last year’s revenue of $1.2 million (see slides 30 and 31). Quarterly Growth Cumulative
Slide 19: Product Development Is Critical
PRODUCT DEVELOPMENT IS CRITICAL Build and Establish Respected Tech Support. A stable and valuable revenue stream will be driven by the ability of Surna to effectively support its technology and products in a timely and efficient fashion. Continue to Develop and Innovate a Robust Product Pipeline. Su
Slide 20: Emphasis on Manufacturing
EMPHASIS ON MANUFACTURING Establish Scalable Operations. The near term success of Surna will depend on the Company's ability to create a manufacturing capability that can scale with the potential demand from a rapidly growing cannabis sector. Develop and Secure a Robust Supply Chain. In order to mai
Slide 21: World Class Leadership
WORLD CLASS LEADERSHIP Bryon Jorgensen - CEO. Over 25 years as an operations professional. St. Jude Medical, ev3, Synovis, SciMed (now Medtronic), Unisys. Doug McKinnon - CFO. Over 30 years of experience as a CFO and CEO. Vixxi Solutions, |CG Communications and PriceWaterhouseCoopers. David Traylor
Slide 22: Surna Summary
SURNA SUMMARY Innovation for a Growth Sector. Surna has established a multi-disciplined engineering team, providing an unrivalled ability to develop innovative and patentable technologies for the cannabis sector. Growing Revenue from an Established Product Foundation. = Surna is currently selling an
Slide 23: Slide 23
Slide 24: Appendix
APPENDIX
Slide 25: Endnotes
ENDNOTES . Orbiston J, Hogue J. Sector Report: Medicinal and Recreational Cannabis. 2014. High Alert Capital Partners. 2. Ingold, John. “Lawmakers in 11 states approve low-THC medical marijuana bills." The Denver Post. N.p., n.d. Web. 15 Oct. 2014. <http://www.denverpost.com/marijuana/ci_26059454/la
Slide 26: Endnotes
ENDNOTES Image slide 5 and 30 courtesy of http://www.cannalawblog.com/update-united-states-map-of- marijuana-legalization/ Image on slide 6 courtesy of http://www.belowthelion.co.za/sativex-cannabis-mouth-spray/ Image of slide 7 courtesy of http://www.vectorstock.com/royalty-free-vector/isolated-can
Slide 27: Comparing the Advantages
COMPARING THE ADVAN Comparison for Cannabis Production. Below is a comparison of the Surna Chiller technology to A/C and other chiller products currently in use for cannabis cultivation. Other Surna A/C Chillers Chillers [cost of Equipment $$ Sss$ $s [cost of Installation $$ $$$ $ [Scalable No Yes Y
Slide 28: Cannabis Sector Growth
CANNABIS SECTOR GROWTH Estimated Market Growth of U.S. Medicinal Marijuana Market $10 5 $6) $44 $3 | $2 $14 =| a $0 + L 4 i__ 2011 2012 2013 2014 2015 2016 Year Medicinal Marijuana Market ($B) * 8 Source: High Alert Capital Partners, Standard and Poors SURNA
Slide 29: Cannabis Map of U.S.
CANNABIS MAP OF U.S. Marijuana Legalization Across the U.S. S and beyond state lawmaker initiatives only Map detoils os of Januory 2014
Slide 30: Cannabis Grow: 3D Rendering
CANNABIS GROW: 3D RENDERING
Slide 31: Cannabis Public Companies 2015
CANNABIS PUBLIC COMPANIES 2015 Market cap Total EV um (SM) Rank _Revenue(SM) _Rank wuntry Exchange ‘Abattls Bioceuticals Corp. ‘Advanced Cannabis Solutions, Inc. Aja Cannafaauring, Inc Alternaturals, Inc American Cannabis Company, Inc American Green, Inc. ‘AmeriCann, In. Bedrocan Cannabis Corp, Blue
Slide 32: Cannabis Public Companies 2015
CANNABIS PUBLIC COMPANIES 2015 Home Treasure Finders, Inc. Homeland Security Corporation InMed Pharmaceuticals Inc. Integrated Cannabis Solutions, Inc Poworld Kore Resources, Inc Madison Explorations Ine. ‘Med-Cannabis Pharma, Inc. Medical Marijuana, Inc. Medican Enterprises, ne. Mettrum Health Corp