YZi Labs, a significant shareholder in CEA Industries, Inc. (NASDAQ: BNC), has issued a formal rectification notice to 10X Capital, the asset manager of BNC. The notice accuses 10X of mismanagement, lack of transparency, and potential breaches of its strategic service agreement with YZi Labs. It highlights serious breaches of fiduciary duty and governance deficiencies by 10X and its personnel.
The notice follows reports that 10X is pressuring BNC to abandon its BNB asset management strategy, despite a recent $500 million PIPE investment aimed at expanding this business. YZi Labs claims that 10X's actions violate agreements that require a majority of BNC's capital to be allocated to the BNB strategy, subject to market conditions. Additionally, BNC's management is accused of conflicts of interest and failing to disclose critical information, including BNB holdings and share counts.
YZi Labs Warns 10X Capital Over Mismanagement of BNC Assets
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