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YZi Labs Responds to CEA Industries' Proposed Amendments to Asset Management Agreement
Globenewswire· 2026-02-23 21:00
Core Viewpoint - YZILabs Management Ltd. expresses support for the CEA Industries Inc. Board's acknowledgment of the need for amendments to the Asset Management Agreement (AMA) with 10X Capital Asset Management LLC, while criticizing the Board for misrepresenting facts and delaying necessary changes [1][2][3]. Group 1: Board's Acknowledgment and Criticism - The Board admits that the AMA requires lower management fees, a shorter term, and a more favorable termination provision, which aligns with YZILabs' demands [2]. - YZILabs accuses the Board of fabricating claims that it was blocking the Board's actions, asserting that it had terminated the Strategic Services Agreement and advocated for fee reductions [3][5]. - The Board's rebranding of the Strategic Services Agreement as a "Secret Side Agreement" is described as a deceptive tactic to distract stockholders from its failures [4]. Group 2: Financial Incentives and Conflicts of Interest - YZILabs highlights that the delay in AMA amendments benefits 10X, which continues to extract unearned wealth from the Company while stockholders suffer [6]. - The Board is urged to retract its claims about YZILabs and the Strategic Services Agreement, which are characterized as defamatory [7]. Group 3: Demands for Transparency and Accountability - YZILabs demands that the Board retract false claims, ensure that directors affiliated with 10X recuse themselves from AMA discussions, and publicly disclose all proposed amendments and agreements [15]. - The firm reserves the right to pursue legal action against Board members for continued misrepresentations [9]. Group 4: Company Background - YZILabs Management Ltd. is an investment firm focused on high-governance participation in the digital asset and blockchain sectors, emphasizing operational integrity and shareholder alignment [10].