CEA Industries Provides Update on Status of Renegotiation of Asset Management Agreement with 10X Capital

Core Viewpoint - CEA Industries Inc. is actively seeking to renegotiate its Asset Management Agreement with 10X Capital Asset Management LLC, aiming to align the agreement with market standards and improve terms for stockholders [1][8]. Summary by Sections Negotiation Efforts - On February 18, the Company proposed specific terms for amendments to the Asset Management Agreement (AMA) after discussions with 10X, with a formal Market Proposal delivered on March 8 [2]. - The original AMA was executed in August 2025, prior to the majority of the current Board's tenure [2]. Proposed Enhancements - The Board's proposed terms are designed to be more favorable to BNC stockholders compared to demands made by YZILabs Management Ltd. [3]. - Key enhancements include a reduction in management fees, a shorter term for the agreement, and adjusted liquidated damages [9]. 10X's Response - Despite initial willingness from 10X's principal, Hans Thomas, to engage constructively, the Company has not received a comprehensive counterproposal or meaningful feedback on the Market Proposal [4][7]. - 10X's only response has been a nominal reduction in management fees, which the Company views as insufficient and merely cosmetic [5]. Delays and Concerns - The Board believes that 10X has delayed negotiations by engaging a consulting firm for benchmarking, despite the Company already completing a thorough analysis [6]. - The lack of urgency and constructive engagement from 10X has been noted, with the Company asserting that no meaningful concessions have been offered [7]. Limitations of the Current Agreement - The restrictive terms of the original AMA prevent the current Board from unilaterally demanding amendments or terminating the agreement without incurring substantial fees [8]. - Amending the AMA to a market-standard version requires constructive engagement from 10X [8].