Core Viewpoint - CEA Industries Inc. is progressing with the acquisition of Fat Panda Ltd., a leading retailer and manufacturer of nicotine vape products in central Canada, which is seen as a strategic move to enter the high-growth vape industry [1][3]. Company Overview - CEA Industries Inc. provides a suite of offerings to the controlled environment agriculture industry, supporting the development of the global ecosystem for indoor cultivation [5]. Acquisition Details - Fat Panda is the largest retailer and manufacturer of e-cigarettes and vape products in central Canada, operating 33 retail locations and an e-commerce platform [2]. - In fiscal 2024, Fat Panda generated CAD $38.5 million (USD $28.5 million) in revenue, with a gross margin of 39% and adjusted EBITDA of CAD $8.4 million (USD $6.2 million) [2]. - Both revenue and adjusted EBITDA grew over 10% from fiscal 2023, while gross margin declined by 15% [2]. - The acquisition is expected to be completed in the first half of 2025, subject to customary closing conditions [3]. Strategic Importance - The acquisition is viewed as pivotal for CEA Industries to leverage Fat Panda's market leadership, extensive retail network, and vertically integrated operations, aiming to accelerate expansion and create long-term value for shareholders [3].
CEA Industries Inc. Provides Update on Acquisition of Leading Canadian Vape Retailer and Manufacturer, Fat Panda Ltd.