As per Odaily, investment firm YZiLabs has submitted a preliminary consent statement to the U.S. SEC, seeking to expand the board of Nasdaq-listed CEA Industries Inc. (BNC) and elect new directors. YZiLabs criticized the company for poor strategic execution, inadequate investor communication, and weak board oversight since its $500 million PIPE financing in summer 2024, which has led to a stock price that diverges from its BNB-based digital asset treasury (DAT) strategy. The firm aims to strengthen corporate governance, improve disclosures, and realign the stock price with intrinsic value. YZiLabs also highlighted issues such as delayed SEC filings, outdated DAT and NAV data, and inconsistent public messaging. The move is expected to involve YZiLabs Management, CZ, and potential director candidates. YZiLabs currently holds approximately 2.15 million BNC shares and various warrants, though these are restricted by a 4.99% ownership cap.
YZiLabs Challenges BNC Board, Calls for New Directors to Improve Governance
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