Yzi Labs' investment partners accuse CEA Industries of maliciously delaying the shareholders' meeting, jeopardizing its listing status

Yzi Labs investment partner Alex Odagiu recently wrote to the CEA Industries board, accusing it of recklessly delaying the annual shareholder meeting, which could put the company at risk of being delisted from Nasdaq.

The letter pointed out that it has been over 400 days since the last shareholder meeting. The board attempted to extend the interval between meetings to 16 months by changing the fiscal year-end date to April 30 through "accounting maneuvers," exploiting a loophole in the rules. Alex Odagiu stated that this move by the board was to evade voting and that last December, they used the excuse of a "ski vacation" to cover up their actions to obstruct shareholder democracy through the adoption of a "poison pill" plan and amendments to the bylaws.

The letter emphasized that although the board tried to comply technically, its malicious manipulation could trigger Nasdaq's discretion to delist. Yzi Labs demands that the board immediately announce the date of the 2025 annual shareholder meeting and cease actions that jeopardize the company's listing status to maintain their positions.