Bastion Trading, which holds nearly 10% of SkyAI, is demanding answers on the company's SOL sales ahead of a proposed buyback. SkyAI's latest filing showed roughly 400,000 fewer SOL than the company announced days earlier. Bastion also wants a higher buyback price.
Bastion Trading, which holds nearly 10% of Solana treasury company SkyAI, is demanding an explanation for a drop in the firm's SOL holdings. The demand comes ahead of a proposed $3-per-share buyback. In a Wednesday release, the investment firm said it would not participate in the tender offer until its concerns were addressed.
SkyAI's SOL balance falls 70% in under a month
SkyAI said on Sept. 14 that it held more than 2 million SOL, worth roughly $207 million at the time, and remained committed to its Solana treasury strategy. Then, in an Oct. 11 buyback announcement, the company disclosed it sold around 1 million SOL and still held roughly 1 million.
However, an 8-K filed Tuesday put the remaining balance at approximately 600,000 SOL, a 70% reduction of the treasury in less than a month. The filing did not explain the 400,000 SOL discrepancy from the previously announced sale.
Bastion's demands
Bastion wants SkyAI to disclose dates, quantities, prices, and proceeds of all recent sales, along with how the transactions were approved. It called the sale a "fundamental departure" from SkyAI's treasury strategy.
According to the filings, SkyAI plans to use proceeds from the SOL sales to buy up to 95% of its outstanding shares and warrants for around $200 million. Bastion is pushing to raise the per-share buyback from $3 to $3.50. It also wants strategic advisor warrants excluded, because they were granted to a company controlled by the brother of SkyAI's CIO.
The dispute follows a September shareholder protest in which all five SkyAI directors received more withhold votes than support. They kept their seats because shareholders had no option to vote to remove them.
Source: The Block
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