YZi Labs accuses the BNC Board of Directors of betraying shareholders, obstructing reforms, and falling into strategic confusion

On January 5th, according to official sources, YZi Labs issued a statement on social media stating: YZi Labs Management Ltd. is currently reviewing recent actions taken by BNC (CEA Industries) regarding the formation of a shareholder group and the initiation of a proxy solicitation process. These actions that harm shareholder interests include the use of a “poison pill” plan and amendments to the bylaws aimed at obstructing and delaying shareholders’ rights to exercise their rights through written consent. YZi believes that the substantive effect of these actions is to increase unnecessary restrictions and procedural burdens beyond what is required by Nevada law. The company’s board of directors (“Board”) has taken these steps clearly to consolidate its position—even after YZi warned that further impairment of shareholder rights could provoke strong shareholder discontent. YZi has reminded the Board that failure to properly fulfill fiduciary duties could pose potential legal risks. Nevertheless, the Board chose to restrict shareholder rights rather than admit fault, indicating their awareness of lacking shareholder support. Many other shareholders have confirmed to us their concerns and shock over BNC’s unwise strategic shift and abandonment of the BNB ecosystem, sharing the same worries as YZi. Furthermore, YZi refutes the false claim made by the company that it has “never considered adopting alternative tokens for the company’s digital asset reserve strategy, nor has it launched competitive digital asset reserve businesses.” This denial contradicts statements made by BNC CEO David Namdar at an industry conference in November 2025, where he explicitly stated that BNC had considered shifting to other cryptocurrencies such as Solana. Coupled with Mr. Namdar and Board member Hans Thomas actively promoting and fundraising for other digital asset reserve projects during their leadership of BNC, YZi believes shareholders have reason to worry about their interests being betrayed.