CEA Industries responds to ‘false claims’ by YZILabs Management

CEA Industries (BNC) responded to false claims made by YZILabs Management about the company’s compliance with Nasdaq Stock Market rules regarding the date of the company’s Annual Meeting of Stockholders: “BNC is in full compliance with Nasdaq Rule 5620(a). Nasdaq rules also allow the company to submit a plan to regain compliance if the Annual Meeting has not been held by the fiscal year end. Given that our fiscal year does not even end for two more months, YZi Labs’ reckless claim that the company is at risk of delisting is self-evidently false. Furthermore, contrary to YZi Labs’ implication that the change to the company’s fiscal year end was intended to disadvantage or thwart YZi Labs, the company transitioned its fiscal year end on June 29, 2025 – well before YZi Labs had acquired a single share of BNC stock – to align with the fiscal year end of the company’s then-largest operating business. This change was approved in accordance with applicable law and was properly disclosed to all stockholders on a Form 8-K filed on July 3, 2025. We are disappointed that YZi Labs would resort to promoting baseless conspiracy theories that it knows, or should know, are false. The company will not be drawn into inflammatory public exchanges and remains focused on disciplined governance, long-term value creation and acting in the best interests of all stockholders.”