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CEA Industries Inc. (NASDAQ:CEAD), based in Boulder, Colorado, has entered into a significant agreement with Velocity Investments Incorporated. According to InvestingPro data, the company maintains a strong financial position with more cash than debt and a healthy current ratio of 8.16x. The agreement involves Velocity providing due diligence services and acquisition advice related to CEA Industries’ acquisition of Fat Panda Ltd., a Canadian company known for manufacturing and retailing nicotine vape products.
Under the terms of the agreement, Velocity’s services were valued at CAD 700,000, which was settled through the issuance of 39,000 shares of CEA Industries’ common stock. As of the issuance date, the shares had a market value of approximately $313,950 in the United States. The company’s stock, which has shown strong momentum with a 20% return over the past year, appears undervalued according to InvestingPro Fair Value analysis.
This agreement is part of a broader strategy by CEA Industries to expand its footprint in the nicotine vape product sector. The transaction details were disclosed in a recent 8-K filing with the Securities and Exchange Commission (SEC) on June 6, 2025. The filing also included financial statements and exhibits related to the agreement.
CEA Industries, formerly known as Surna Inc., is incorporated in Nevada and operates in the agriculture services sector. The company’s common stock and warrants to purchase common stock are listed on the Nasdaq Capital Market under the symbols CEAD and CEADW, respectively.
The acquisition of Fat Panda is expected to enhance CEA Industries’ market position in the vape product industry, leveraging Fat Panda’s established presence in Canada. The agreement with Velocity marks a strategic move to bolster CEA Industries’ capabilities in navigating and executing acquisitions in this competitive market.
This information is based on a press release statement filed with the SEC.
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