CEA Industries proposes amended asset management agreement to 10X Capital

CEA Industries (BNC) announced that its board of directors has made a proposal to 10X Capital to amend the company’s asset management agreement, or AMA. Among other enhancements, the board is seeking lower management fees, a shorter term and a more favorable termination provision. 10X has indicated its willingness to work cooperatively with the company to amend the AMA, and the company seeks to resolve these discussions expeditiously. The board believes that an amended AMA, including a more cost-efficient structure, will enhance operational flexibility and support long-term value creation. The board looks forward to constructive discussions to renegotiate the AMA for the benefit of all stockholders. The board’s proposal follows a comprehensive review of the AMA and related matters, during which the board evaluated the structure and terms of the agreement and developed a detailed plan for reform. After YZi Labs publicly confirmed the termination of its Secret Side Agreement with 10X, which had restricted 10X from agreeing to amendments, the board is moving forward with its proposal.