Yzi Labs investment partner Alex Odagiu accuses CEA Industries' board of directors of recklessly delaying the annual general meeting (AGM), potentially putting the company at risk of Delisting from Nasdaq.
In a letter to the Board of Directors, Odagiu argued that postponing the AGM was intended to avoid voting and could trigger Nasdaq's Delisting consideration, even though the Board of Directors tried to appear technically compliant.
- Yzi Labs warns CEA Industries risks Delisting from Nasdaq due to delays in its AGM.
- The board of directors is accused of changing the fiscal year end date to April 30th in order to extend the meeting cycle to 16 months.
- Yzi Labs demands the immediate announcement of the 2025 AGM date and a halt to actions XEM to hinder shareholder democracy.
Allegations of delaying the AGM and the risk of Delisting.
Alex Odagiu's letter stated that postponing the AGM could put CEA Industries at risk of Delisting by Nasdaq.
Odagiu wrote that the board of directors acted recklessly by delaying the annual meeting, creating a situation that could trigger Nasdaq's Delisting decision. He stressed that this was not merely a procedural delay but an act of circumventing shareholder voting procedures.
The letter also pointed out the relevant timeline: more than 400 days have passed since the previous AGM on December 17, 2024. According to Odagiu's argument, such a long gap increases the risk of the company being perceived as failing to meet governance and transparency expectations for a listed company.
Accused of exploiting loopholes: changing the fiscal year, the poison pill, and amending regulations.
Odagiu accused the board of directors of exploiting a loophole by changing the fiscal year closing date to April 30th to extend the time between AGMs to 16 months.
The letter called this an accounting maneuver aimed at legitimizing the postponement of the meeting and avoiding voting. Odagiu argued that the board's attempt to comply technically was essentially malicious manipulation, sufficient for Nasdaq to consider Delisting within its authority.
Furthermore, Odagiu stated that last December, the Board of Directors used the excuse of a "ski vacation" to cover up obstructing shareholder democracy through a poison pill plan and amendments to the charter. Yzi Labs demanded that the Board of Directors immediately announce the 2025 AGM date and cease all actions deemed to threaten the company's listing status.
