CEA Industries Confirms Receipt of Letter Requesting Board Set a Record Date in Connection with YZi Labs’ Consent Solicitation

Core Viewpoint - CEA Industries Inc. is facing a consent solicitation from YZILabs Management Ltd. to add up to seven directors to its Board, which could lead to a transfer of control to YZILabs, raising concerns about the interests of existing stockholders [2][3][5]. Group 1: Consent Solicitation Details - YZILabs has submitted a Request Letter to the Board to set a record date for its consent solicitation process [2][4]. - The current Board consists of six directors, and adding seven nominees from YZILabs would effectively transfer control to YZILabs [3]. - Only stockholders holding shares as of the record date will be eligible to vote on YZILabs' proposals, including the election of its director nominees [4]. Group 2: Concerns Raised by the Board - The Board has expressed concerns that the proposed nominees from YZILabs are closely associated with Changpeng Zhao (CZ) and his affiliates, which could lead to conflicts of interest [4][5]. - If YZILabs gains control, it could result in the Company purchasing BNB at inflated prices or approving transactions that do not benefit the Company [5]. - The Board is committed to objectively assessing YZILabs' candidates based on their potential to enhance the Board's skills and independent oversight [6]. Group 3: Board's Actions and Statements - The Board is currently reviewing the Request Letter to ensure compliance with the Company's bylaws [7]. - If the Request Letter is deemed valid, the Board will announce a record date for stockholders entitled to participate in the consent process [7]. - The Board emphasizes that stockholders are not required to take any action at this time [8].