CZ-Backed YZi Labs Slams CEA’s “Poison Pill” As Boardroom War Escalates Fast

Core Viewpoint - YZi Labs has criticized CEA Industries Inc. for adopting a poison pill and amending its bylaws, which are seen as actions that entrench the current board rather than protect shareholder interests [1][2]. Group 1: Governance Conflict - YZi Labs holds approximately 5% of CEA's outstanding shares and argues that the new measures restrict shareholders' ability to act and add procedural hurdles beyond Nevada law [2]. - The conflict represents a significant shift from the optimism surrounding CEA, which had recently pivoted to become a BNB-focused digital asset treasury after a $500 million private investment in public equity deal [3]. - CEA's stock has fallen over 90% from its peak, closing near $6.50, despite BNB rising approximately 38% over the past six months [4]. Group 2: Poison Pill Strategy - Tensions escalated when YZi Labs filed a preliminary Schedule 14A with the SEC to overhaul CEA's board, seeking to expand the board and install new directors through written shareholder consent [5]. - In response, CEA's board adopted a poison pill strategy, allowing existing shareholders to purchase additional shares at a 50% discount if any person or group acquires 15% or more of the company's shares without board approval [6]. - YZi Labs views these actions as indicative of the board's lack of shareholder support and a focus on self-preservation, raising concerns about the delay of CEA's 2025 annual meeting [7].