SCHEDULE: 111 Equity Group Divests Entire Stake in CEA Industries, Ends Engagement

111 Equity Group LLC and its principals, Rochel M. Kassirer and Chaim Herzog, have fully divested their beneficial ownership in CEA Industries Inc. and terminated their non-disclosure agreement, signaling an end to their engagement with the company.

Summary

• 111 Equity Group LLC, Rochel M. Kassirer, and Chaim Herzog (collectively, the "Reporting Persons") have filed Amendment No. 2 to their Schedule 13D.
• As of July 28, 2025, the Reporting Persons no longer beneficially own any shares of Common Stock of CEA Industries Inc., representing 0.0% of the class.
• The Agreement for Use and Non-Disclosure of Proprietary Information (NDA) between 111 Equity Group and CEA Industries Inc. was terminated effective February 12, 2025.
• The Reporting Persons have stated they have no current intention to further engage with CEA Industries Inc. management or others regarding the company's business.
• Transactions within the 60-day period prior to the filing include purchases of 1,809 shares on June 13, 2025, at prices ranging from $8.28 to $9.50 per share.
• On July 28, 2025, 111 Equity Group LLC sold a total of 60,000 shares of CEA Industries Inc. common stock through open market transactions, with prices ranging from $45.00 to $64.32 per share. These sales included shares acquired both within and outside the 60-day period.

Sentiment

Score: 2

Explanation: The complete divestment by a significant investor and the termination of engagement indicate a highly negative sentiment towards CEA Industries Inc. from the perspective of the Reporting Persons. This could signal underlying issues or a lack of perceived future value.

Negatives

• A significant investor, 111 Equity Group, along with its principals, has completely divested its stake in CEA Industries Inc.
• The termination of the non-disclosure agreement and the stated lack of intention for future engagement indicate a complete disinterest or withdrawal of support from these Reporting Persons.
• The substantial volume of shares sold on July 28, 2025, suggests a rapid exit from the investment.

Future Outlook

The Reporting Persons have no current intention to further engage with CEA Industries Inc. management or others with respect to the business of the Issuer.

Industry Context

This filing reflects a specific investment firm's decision to exit its position in CEA Industries Inc. and cease engagement, rather than a broader industry trend. It may signal a lack of confidence in the company's future prospects from this particular investor's perspective.

Related Party Transactions

• The termination of the Agreement for Use and Non-Disclosure of Proprietary Information (NDA) between 111 Equity Group and CEA Industries Inc. is a related party transaction, as 111 Equity Group was a significant shareholder and had an existing agreement with the Issuer.

Stakeholder Impact

• Shareholders: The complete divestment by a significant investor could lead to negative market sentiment and potential downward pressure on the stock price.
• Management: The disengagement of a former investor may reduce potential strategic partnerships or capital support from that entity.

Key Dates

Recommendation

The complete divestment by a previously engaged investor group, coupled with the termination of a non-disclosure agreement and a stated lack of intention for future engagement, signals a strong negative outlook from a sophisticated party. This action suggests a lack of confidence in CEA Industries Inc.'s future prospects, which could lead to significant downward pressure on the stock price. A seasoned investor would likely interpret this as a strong signal to sell or avoid the stock.

Keywords

CEA Industries Inc., 111 Equity Group LLC, Schedule 13D, Beneficial Ownership, Divestment, Share Sales, Non-Disclosure Agreement, Investor Relations, Corporate Governance