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CEA Industries Provides Update on Status of Renegotiation of Asset Management Agreement with 10X Capital
LOUISVILLE, CO, March 26, 2026 (GLOBE NEWSWIRE) -- CEA Industries Inc. (NASDAQ: BNC) ("BNC" or the "Company") today provided an update on the status of the
About this update from Cea Industries Inc.
[{"type":"text","content":"LOUISVILLE, CO, March 26, 2026 (GLOBE NEWSWIRE) -- CEA Industries Inc. (NASDAQ: BNC) (\"BNC\" or the \"Company\") today provided an update on the status of the efforts by BNC’s Board of Directors (the “Board”) to renegotiate the Company’s Asset Management Agreement (the “AMA”) with 10X Capital Asset Management LLC (“10X”). On February 18, following a number of conversations with 10X on the subject, the Company outlined specific proposed terms to 10X for substantive amendments to the AMA, which were also included in a proposed amended version of the AMA that was delivered on March 8 (the “Market Proposal”). The AMA was originally executed in August 2025, long before a majority of the current directors joined the Board. Among other enhancements, the Board sought to align the AMA with market practice and improve three key provisions: Fees: A reduction in management fees payable to 10X from 1.75% of the Company’s treasury asset NAV to 0.50% of NAV, plus a potential performance bonus of up to 0.25% based on income generated; Term: A reduction in the term of the agreement from 20 years to two years from the original AMA date; and Liquidated Damages: A commensurate reduction in the fees payable to 10X in the event of a termination of the AMA without cause (and no fees payable in the event of a termination for cause). Notably, these industry-aligned proposed terms are materially more favorable to BNC stockholders than those YZILabs Management Ltd. (“YZi Labs”) has demanded in its own communications with the Company and 10X. At the time of the February 18 conversation and as of the date that the Company delivered the Market Proposal, 10X’s principal, Hans Thomas (now a former Director), indicated his willingness to engage constructively. Unfortunately, 10X has not followed through on this commitment. To date, 10X has not provided the Company with a definitive and comprehensive counterproposal, a mark-up of the proposed revised AMA, or even any substantive feedback on two of the Market Proposal’s most important economic terms. Instead, 10X has only committed to a nominal reduction to its management fee. But in the Company’s view, this purported “concession” is merely cosmetic since 10X is no longer sharing a portion of its fees with YZi Labs under their since-terminated 10X – YZi Side Agreement. As a result of YZi Labs’ termination of tha...