YZiLabs challenges the BNC board: chaotic execution, disordered communication, demands the introduction of new directors to "rescue the market".

Odaily News Investment institution YZiLabs announced that it has submitted a preliminary consent statement to the U.S. SEC, intending to expand the board size of Nasdaq-listed company CEA Industries Inc. (BNC) by soliciting written consent from shareholders and electing several new directors. YZiLabs stated that its investment in BNC is based on its positive outlook on the company's fundamentals, the DAT strategy centered around BNB, and the potential to become a “category-defining DAT company”. However, since completing a $500 million PIPE financing this summer, BNC's stock performance has diverged significantly from this logic, even though BNB's price has seen considerable rise during the same period. YZiLabs representative Ella Zhang stated that BNC's current poor performance is mainly due to “weak strategic execution, insufficient investor communication, and ineffective board oversight”. Therefore, they hope to strengthen corporate governance, improve information disclosure and market communication, and realign stock prices with intrinsic value and asset net worth by expanding the board size and introducing more experienced and competent new directors. YZiLabs also pointed out issues such as delays in submitting key SEC documents, failure to timely update digital asset treasury and NAV data, and confusion in external identification and strategic narrative, believing that shareholders can no longer wait. The announcement indicates that the participants in this consent solicitation are expected to include YZiLabs Management, CZ, and several nominated director candidates. YZiLabs currently directly holds approximately 2.15 million shares of BNC common stock and holds various warrants that can potentially be converted into common stock, but due to a 4.99% ownership limit clause, these warrants will not be exercised in the short term. YZiLabs stated that it will soon announce a specific list of director candidates, aiming to unlock the company's potential value through stronger board governance without undermining BNC's digital asset treasury vision.