TechFlow news, December 3 — According to an official announcement, YZi Labs Management Ltd., a significant shareholder of BNB Treasury company CEA Industries, Inc. (Nasdaq: BNC), has issued a formal notice and demand for corrective action to the company's asset manager, 10X Capital Asset Management LLC.
YZi Labs accused 10X Capital of mismanagement and lack of transparency, alleging potential breach of the strategic services agreement with YZi Labs. The core dispute centers on 10X Capital's threat to abandon the BNB treasury strategy in favor of investing in other cryptocurrencies such as Solana—contradicting the company’s prior commitment to PIPE investors to use $500 million for “establishing corporate BNB treasury operations.”
YZi Labs demands that 10X Capital provide written confirmation by December 5 committing to uphold the BNB treasury strategy and properly manage BNB assets. It also pointed out that under 10X Capital’s management, BNC’s stock performance has significantly lagged behind peers, declining approximately 19% from pre-PIPE announcement levels and 87% from post-announcement levels.
YZi Labs has filed a preliminary proxy statement with the U.S. Securities and Exchange Commission seeking to expand the board and appoint independent directors.
