(RTTNews) - CEA Industries Inc. (CEAD), Wednesday announced an agreement to acquire Canadian vape retailer Fat Panda Ltd. for C$18 million. The purchase will be funded through cash, common shares, and debt, ensuring minimal shareholder dilution.
Fat Panda, central Canada's largest vape retailer and manufacturer, holds over 50 percent market share. It operates 33 stores across Manitoba, Ontario, and Saskatchewan, plus an e-commerce platform. The company offers in-house premium e-liquids and owns a strong portfolio of trademarks and IP.
Fat Panda has built a strong foundation for growth through strategic retail locations, a robust e-commerce platform, and in-house product development since its inception in 2013. Its supplier partnerships and regulatory expertise enhance resilience and compliance. With its leadership intact and CEA Industries' financial backing, Fat Panda is poised for continued expansion and profitability.
The acquisition ensures business continuity by retaining current management, production, and retail staff. Key senior managers will sign employment agreements to continue post-closing.
The acquisition is expected to close in the first half of 2025.
CEAD is currently trading at $8.10 or 8.14% higher on the Nasdaq Capital Market.
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