YZi Labs Criticizes CEA Industries Over Governance Moves
YZi Labs, a major shareholder in CEA Industries (BNC), has publicly condemned the company's adoption of a stockholder rights plan and bylaw amendments. The measures, implemented last December, appear designed to counter YZi's formation of a 7% shareholder group and its consent solicitation process. Filings suggest YZi's potential diluted ownership could reach 34%.
The activist investor labeled BNC's actions as a 'poison pill,' arguing they impose unnecessary procedural hurdles beyond Nevada's legal requirements. YZi claims the board prioritized entrenchment over fiduciary duty, warning that further erosion of shareholder rights WOULD face backlash. 'We cautioned the Board about potential liability for failing its fiduciary obligations,' YZi stated, accusing leadership of suppressing shareholder rights rather than engaging constructively.
