Bastion Trading, which holds nearly 10% of Solana treasury company SkyAI (NASDAQ: $SKYA), said Wednesday it will not participate in SkyAI's planned tender offer until the company explains a steep drop in its SOL (CRYPTO: $SOL) holdings. The investment firm also repeated its call for a complete overhaul of the board.
SkyAI said on Sept. 14 that it held more than 2 million SOL, worth roughly $207 million, and remained committed to its Solana treasury strategy. In an Oct. 11 announcement, it disclosed that it had sold about 1 million SOL and still held roughly 1 million. A Form 8-K filed Tuesday then put the remaining balance at about 600,000 SOL, a 70% reduction in less than a month.
The filing did not explain the 400,000 SOL gap from the previously announced sale. Bastion wants SkyAI to disclose the dates, quantities, prices and proceeds of all recent sales, along with how the transactions were approved. It called the sales a "fundamental departure" from the company's treasury strategy.
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SkyAI plans to use proceeds from the sales to buy up to 95% of its outstanding shares and warrants at $3 each, for roughly $201 million. Bastion is pressing for a higher price of at least $3.50. It also wants strategic advisor warrants excluded, because they were granted to a company controlled by the brother of SkyAI's chief investment officer.
SkyAI has said the offer is expected to begin around Oct. 15 and remain open for 10 business days. According to reports on the Oct. 11 announcement, it is conditioned on SOL's closing price staying above $100. Solana traded near $104 Wednesday. The company also rejected the latest acquisition proposal from larger Solana treasury firm Forward Industries (NASDAQ: $FWDI), saying it undervalued SkyAI.
The dispute follows a shareholder protest in September, when all five SkyAI directors received more withhold votes than votes of support. They kept their seats because shareholders had no option to vote for their removal. The company also lost a vote on an equity plan.
Shares of SkyAI (NASDAQ: SKYA) are currently trading at $2.55, down from a 52 week high of $6.14.
