CEA Industries provides update on AMA renegotiation with 10X Capital

CEA Industries (BNC) provided an update on the status of the efforts by the board of directors to renegotiate the company’s Asset Management Agreement with 10X Capital Asset Management. The board sought to align the agreement with market practice and improve three key provisions of a reduction in management fees payable to 10X from 1.75% of the company’s treasury asset NAV to 0.50% of NAV, a reduction in the term of the agreement from 20 years to two years from the original date, and a commensurate reduction in the fees payable to 10X in the event of a termination without cause. To date, 10X has not provided the company with a definitive and comprehensive counterproposal, a mark-up of the proposed revised agreement, or even any substantive feedback on two of the proposal’s most important economic terms.