On January 5th, according to official news, YZi Labs released an announcement on social media stating:
YZi Labs Management Ltd. is currently reviewing recent actions taken by BNC (CEA Industries) against YZi's formation of a shareholder group and initiation of a proxy solicitation process. These actions, which harm shareholder interests, include the use of a "poison pill" plan and amendments to the articles of incorporation designed to obstruct and delay shareholders' exercise of their rights through written consent. YZi believes that the material impact of these actions is the addition of unnecessary restrictions and procedural burdens beyond what is required by Nevada law.
The Board of Directors (the "Board") took these steps clearly to consolidate its position—even after YZi warned that further damage to shareholder rights would trigger strong shareholder dissatisfaction. YZi had reminded the Board of Directors of potential legal risks arising from its failure to properly fulfill its fiduciary responsibilities. Nevertheless, the Board of Directors chose to restrict shareholder rights rather than admit wrongdoing, indicating their awareness of a lack of shareholder support. Many other shareholders have confirmed to us that they share YZi's concerns and shock regarding BNC's unwise strategic shift and abandonment of the BNB ecosystem.
Furthermore, YZi refuted the company's false statement that it "has never considered adopting alternative tokens for its digital asset reserve strategy, nor has it launched a competing digital asset reserve business." This denial contradicts BNC CEO David Namdar's statement at an industry conference in November 2025 that BNC had considered switching to other crypto assets such as Solana. Given Mr. Namdar and board member Hans Thomas's active promotion and fundraising efforts for other digital asset reserve projects during their leadership roles at BNC, YZi believes shareholders have reason to worry about a potential betrayal of their interests.
