Core Insights - CEA Industries is strategically evolving by acquiring Fat Panda, a leading retailer and manufacturer in the Canadian vape market, which is experiencing significant growth [2][5] - The acquisition is expected to close in the first half of 2025, subject to customary closing conditions [5][6] Company Overview - CEA Industries aims to enhance Fat Panda's vertically integrated operations through both organic and inorganic growth initiatives, optimizing its retail presence across 33 locations in Canada [3][5] - Fat Panda operates its own e-commerce platform and offers a diverse product lineup, including premium e-liquids and a portfolio of trademarks [3] Financial Performance - Fat Panda reported preliminary financial highlights for 2024, with revenue of CAD $38.5 million (USD $28.5 million), a 14% increase from CAD $33.8 million (USD $25.4 million) in fiscal 2023 [7] - Gross margins decreased to 39% in fiscal 2024 from 46% in fiscal 2023, while operating expenses improved by 11% to CAD $13.4 million (USD $9.9 million) [7] - Net income rose by 126% to CAD $1.2 million (USD $0.9 million) in fiscal 2024, and adjusted EBITDA increased by 16% to CAD $8.0 million (USD $5.9 million) [7]
CEA Industries Inc. Provides Update on Fat Panda Acquisition