YZi Labs Responds to Adoption of Poison Pill and Defensive Bylaw Amendments by CEA Industries

Core Viewpoint - YZILabs Management Ltd. expresses disappointment in CEA Industries Inc.'s Board for prioritizing self-entrenchment over stockholder interests and calls for a fair director nomination and election process [1][2][3] Group 1: Board Actions and Stockholder Rights - The Board has adopted a poison pill and bylaw provisions that hinder stockholders' ability to act by written consent, which YZi believes adds unnecessary constraints beyond Nevada law [1][2] - YZi warns that the Board's actions could expose it to liability for failing to fulfill fiduciary duties, as it appears to prefer restricting stockholder rights rather than acknowledging its mistakes [2][3] - The Board has delayed the 2025 Annual Meeting past its scheduled date, raising concerns about manipulative behavior regarding the election process [4] Group 2: Strategic Direction and Token Strategy - YZi rejects the Board's claim that it has never considered alternative tokens for its digital asset treasury strategy, citing a comment from CEO David Namdar about contemplating a switch to other crypto assets [5][11] - There is a concern among stockholders that the Board's actions may betray their interests, as they expect representation aligned with the token strategy in which they invested [5] Group 3: Shareholder Engagement and Future Actions - YZi is closely monitoring the Company's activities and disclosures, particularly regarding the upcoming 2025 Annual Meeting, which is critical for stockholders to vote on the Board's composition [3][4] - YZi Labs aims to provide stockholders with the opportunity to elect new board members at the 2025 Annual Meeting, emphasizing the need for better governance and alignment with shareholder interests [5]