YZiLabs criticizes BNC's board of directors, citing chaotic execution and poor communication, and demands the introduction of new directors to "save the company."

According to Odaily Planet Daily, investment firm YZiLabs has submitted a preliminary consent statement to the U.S. Securities and Exchange Commission (SEC) to expand the board of directors 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 was based on its positive outlook on the company's fundamentals, its digital asset treasury (DAT) strategy centered on BNB, and its potential to become a "category-defining DAT company." However, since completing its $500 million PIPE funding round this summer, BNC's stock performance has clearly deviated from this logic, even though the price of BNB has already seen a considerable increase during this period.

Ella Zhang, head of YZiLabs, stated that BNC's current poor performance is primarily due to "weak strategic execution, insufficient investor communication, and inadequate board oversight." Therefore, she hopes to strengthen corporate governance, improve information disclosure and market communication, and realign the stock price with the intrinsic value of net asset value and treasury strategy by expanding the board size and bringing in more experienced and competent new directors. YZiLabs also specifically named issues such as delayed filing of key SEC documents, failure to update digital asset treasury and NAV data in a timely manner, and confusion regarding external identity and strategic narrative, believing that shareholders can no longer wait.

The announcement indicates that the parties involved in this nomination process are expected to include YZiLabs Management, CZ, and several proposed board candidates. YZiLabs currently directly holds approximately 2.15 million BNC common shares and various warrants potentially convertible into common shares; however, these warrants will not be exercised in the short term due to the 4.99% shareholding cap. YZiLabs stated that it will soon announce the specific list of board candidates, aiming to unlock the company's potential value through stronger board governance without compromising BNC's digital asset treasury vision.