Alex Odagiu, a partner at YZi Labs, recently sent a letter to the board of directors of CEA Industries, criticizing their delay in holding the annual shareholders meeting as extremely reckless and potentially leading to the company facing Nasdaq delisting risk. The letter pointed out that it has been over 400 days since the last shareholders meeting was held on December 17, 2024. The board attempted to extend the meeting interval to 16 months by changing the fiscal year-end to April 30, using accounting measures to exploit regulatory loopholes. Odagiu stated that the board’s actions were intended to avoid shareholder voting and that last December they used the excuse of a “ski vacation” to cover up their adoption of a “poison pill” plan and amendments to the bylaws that hinder shareholder democracy. The letter emphasized that although the board tried to maintain technical compliance, their malicious manipulation could trigger Nasdaq’s discretionary power to delist the company. YZi Labs demanded that the board immediately announce the date of the 2025 annual shareholders meeting and called for an end to actions that jeopardize the company’s listing status in order to retain board positions.
