CEA Industries Inc. (NASDAQ: BNC) announced on February 18 2026 that its Board of Directors has submitted a proposal to 10X Capital Asset Management LLC to amend the company’s Asset Management Agreement. The proposal seeks to lower management fees, shorten the agreement’s term, and secure a more favorable termination provision for BNC.
The amendment is enabled by the termination of a previously secret side agreement between YZi Labs and 10X Capital. That side agreement had diverted a portion of the fees paid to 10X to YZi Labs without providing any defined services, effectively inflating the cost of the Asset Management Agreement. Removing that arrangement cleared the way for renegotiation.
Under the current agreement, CEA pays 1.5 % of assets under management to 10X. The board’s proposal would reduce that fee to 1.2 %. The existing five‑year term would be cut to three years, and the termination clause would change from a 180‑day notice to a 90‑day notice, giving BNC greater flexibility to exit the relationship if needed.
CEA’s financials underscore the urgency of the proposal. In the trailing twelve months, the company generated $8.27 million in revenue, with an operating margin of –318 %. Liquidity remains strong, with a current ratio of 5.17 and a quick ratio of 4.86, and the company has recently completed a $500 million private placement and announced a $250 million share‑repurchase program. These developments reflect the company’s shift from controlled‑environment agriculture to managing a large “corporate treasury of BNB” and other digital assets.
CEO David Namdar has emphasized the company’s transformation into BNC and its confidence in the digital‑asset strategy. While no direct quote is available for this announcement, management has repeatedly highlighted the importance of cost control and strategic flexibility in the new business model.
The announcement did not trigger a noticeable market reaction, and analysts have not issued new guidance or ratings in response to the proposed amendments.
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