CZ-backed YZi Labs escalates fight over CEA’s ‘poison pill’ and BNB treasury strategy
YZi Labs is challenging CEA Industries’ newly adopted poison pill and bylaw changes, accusing the board of entrenchment and misrepresenting its commitment to a BNB treasury.
Changpeng “CZ” Zhao-backed YZi Labs has escalated its campaign against CEA Industries over a newly adopted poison pill (a defensive tactic a company’s board uses to make a hostile takeover extremely difficult or expensive), and bylaw amendments that it claims are “stockholder-unfriendly” and intended to entrench the current board.
The investment firm, backed by Binance founder CZ, outlined its objections in a Monday filing with the United States Securities and Exchange Commission (SEC) and in a parallel public X statement on Wednesday.
YZi said it is reviewing CEA’s adoption of a shareholder rights plan and bylaw changes that affect shareholders’ ability to act by written consent.