YZiLabs Challenges BNC Board: Chaotic Execution, Disordered Communication, Demanding the Introduction of New Directors to "Save the Market"

On November 28 (UTC+8), investment firm YZiLabs announced that it has submitted a preliminary consent statement to the U.S. SEC, planning to expand the board size of Nasdaq-listed CEA Industries Inc. ($BNC) and elect several new directors by soliciting written consent from shareholders.

YZiLabs stated that its investment in $BNC is based on its optimism about the company's fundamentals, the BNB-centric Digital Asset Treasury (DAT) strategy, and the potential to become a "category-defining DAT company." However, since the completion of the $500.00M PIPE financing this summer, $BNC's stock performance has clearly deviated from this logic, even though the price of BNB has seen a considerable increase during this period.

Ella Zhang, head of YZiLabs, stated that $BNC's current poor performance is mainly due to "weak strategic execution, insufficient investor communication, and inadequate board oversight." Therefore, they hope to strengthen corporate governance, improve information disclosure and market communication, and realign the stock price with the intrinsic value of the asset net value and treasury strategy by expanding the board size and introducing more experienced and competent new directors.

YZiLabs also pointed out issues such as the company's delay in submitting key SEC documents, failure to update digital asset treasury and NAV data in a timely manner, and confusion in external identity and strategic narrative, believing that shareholders can no longer wait. The announcement shows that the participants in this consent solicitation are expected to include YZiLabs Management, CZ, and multiple nominated director candidates.

YZiLabs currently directly holds approximately 2.15M shares of $BNC common stock and holds various warrants that can potentially be converted into common stock. However, these warrants will not be exercised in the short term due to the 4.99% shareholding cap clause. YZiLabs stated that it will soon announce the specific list of director candidates, with the goal of releasing the company's potential value through stronger board governance without shaking the $BNC digital asset treasury vision.

[ME]