YZILabs Raises Management Concerns Against CEA Industries

YZILabs Management, a significant stockholder of CEA Industries, issued a statement regarding recent media reports detailing a new lawsuit filed by another stockholder against the Company and Director Hans Thomas, who is also the Founding Partner of the Company's asset manager, 10X Capital Asset Management. The firm said, "According to reports from financial media outlets, a complaint filed by an investor named Abraham Gomez asserts a shocking level of corporate dysfunction at BNC. The allegations confirm that YZi Labs is not the only party raising severe concerns about the Company's management and its apparent lack of basic corporate infrastructure and exploitation of investor capital. The reported complaint alleges that after completing an initial investment, the stockholder visited the Company's offices to understand the situation on the ground. Instead of a functioning Nasdaq-listed business, the investor allegedly found the Company to be in a state of near "operational vacuum." According to the reports, the filing asserts that, at the time of the visit, BNC operated with: No Chief Financial Officer; No Chief Operating Officer; No Operations or Marketing Teams; No Investor Relations or Public Relations function; No Fund Management System; No registered domain name and not even a functioning website. In our view, for a public company whose Board of Directors recently signed a 20-year Asset Management Agreement with 10X to manage a massive treasury, the absence of a basic fund management system, executive leadership, or even a website is a catastrophic indictment of the Board's lack of oversight...The Board can no longer pretend that stockholder discontent is isolated. The chorus of investors demanding accountability is growing louder, and the legal liabilities are mounting. YZi Labs demands that the Board immediately: Address the Allegations: Issue a public response detailing exactly what corporate infrastructure, executives, and systems actually exist at BNC today, and explain how a public company was allowed to operate in an "operational vacuum." In our view, the recent announcement of Brent Miller's appointment as CFO is too little too late. It is deeply concerning that the Company went more than 21 months without a formally appointed CFO, including more than seven months after closing its $500 million PIPE on August 5, 2025, before finally appointing Mr. Miller effective March 9, 2026. Investigate Mr. Thomas: Form an independent, unconflicted special committee to investigate the allegations that Mr. Thomas and the Company utilized investor funds and credibility under false pretenses. Void the AMA: Terminate the 20-year AMA with 10X, which is extracting exorbitant fees from a Company that allegedly lacks the basic infrastructure to even manage its own website. Stockholders deserve a real company, not a shell seemingly designed to serve 10X. YZi Labs will continue to take all necessary actions to protect stockholder value and enforce basic corporate governance."