GlobeNewswire·Dec 3, 2025, 8:00 AM ET

YZi Labs has Issued Formal Notice to 10X Capital and Cautions Shareholders of CEA Industries, Inc. Regarding the Value-Destructive Actions of 10X Capital, the Company's Asset Manager

BMNR BNC

YZi Labs issued a formal Notice and Demand for Corrective Action to 10X Capital Asset Management LLC, citing mismanagement, lack of transparency, & threatened breaches of the Strategic Services Agreement regarding CEA Industries Inc. (NASDAQ: BNC).
YZi Labs alleges 10X plans to abandon the promised BNB Treasury Strategy just three months after a $500 million PIPE investment was secured for that specific purpose, with management reportedly shifting focus to alternative cryptocurrencies like Solana.
The Notice demands written confirmation by December 5, 2025, that 10X will adhere to the BNB Treasury Strategy & has not improperly disposed of BNB assets.
YZi Labs claims 10X & its principals, CEO David Namdar & Board Member Hans Thomas, have destroyed shareholder value through delayed disclosures, insufficient transparency on assets, & conflicts of interest involving competing Digital Asset Treasury ventures.
BNC stock has fallen approximately 19% below pre-PIPE levels & 87% below post-announcement levels, contrasting sharply with peer BitMine Immersion Technologies (NASDAQ: BMNR), which rose 667% from its pre-announcement close.
YZi Labs demands 10X amend the Asset Management Agreement & provide comprehensive transparency including an operational plan, asset-management methodology, risk framework, reporting package, personnel overview, & evidence of internal controls.
YZi Labs requires the implementation of a chronologically accurate dashboard disclosing BNB holdings, outstanding share counts, & other critical data customary for publicly traded Digital Asset Treasuries.
YZi Labs intends to solicit shareholder consent to expand the Board with independent directors & has filed a preliminary consent statement with the SEC on December 1, 2025.
As of the announcement date, YZi Labs Management directly owns 2,150,481 shares of BNC common stock & holds significant underlying positions in Pre-Funded, Stapled, & Strategic Advisor Warrants subject to beneficial ownership limitations.