CEA Industries Inc. (NasdaqCM:CEAD) initiated review of strategic alternatives. Tony McDonald, Chairman and Chief Executive Officer of CEA Industries said ?The cannabis market environment continues to present challenges as operators contend with the prolonged effects of pricing and inflationary pressure?. ?The controlled agricultural sector is also experiencing reorganization and reduced investment.

As a result, capital expenditures across both sectors remain suppressed, which is impacting our net bookings. To offset these headwinds, we preemptively implemented a series of cost-cutting initiatives that have reduced our operating expenses by more than 60% compared to the year-ago period. We plan to maintain this lean cost structure moving forward, while targeting new contracts in both the cannabis and traditional agriculture sectors.

?In addition to pursuing new contracts, given the current environment we have begun to review strategic alternatives, including a sale, merger or other potential strategic or financial transaction, to protect and maximize shareholder value. We will pursue a path that we believe will maximize value for our shareholders and ensure a successful outcome for our customers and employees?. The Company?s Board of Directors has retained Roth Capital Partners as financial advisor to assist in its review of strategic alternatives.

There can be no assurance regarding the results or outcome of this review.