- Bastion demands an explanation for the roughly 70% reduction in SOL holdings.
- The investor wants a higher offer price and changes to board oversight.
- The proposed tender remains conditional on SOL prices and shareholder participation.
Bastion Trading is challenging the proposed SkyAI buyback after the company disclosed a sharp reduction in its Solana treasury. The investor, which owns approximately 9.99% alongside affiliates, demanded a full accounting on October 14. It said it would not participate until concerns over SOL sales, board oversight and the proposed $3 offer were addressed.
SkyAI buyback faces questions over shrinking SOL reserves
SkyAI reported holding more than two million SOL on September 14 while reaffirming its treasury strategy. Its October 11 announcement then disclosed sales of approximately one million tokens, leaving roughly one million.
However, an October 13 SEC filing placed remaining holdings at approximately 600,000 SOL. That implies a roughly 70% reduction from the September balance and leaves a 400,000-token discrepancy between disclosures.
Bastion wants transaction dates, quantities, prices and proceeds, alongside details of how the sales were authorized. It argues that the disposals represent a major departure from the business strategy shareholders previously supported.
The SkyAI buyback would use proceeds from those sales to repurchase shares and warrants. The company reported having approximately 80% of the cash required, making funding another factor in completing the transaction.
Investor seeks higher price and changes to board oversight
The SkyAI buyback proposes purchasing up to 95% of each eligible securities class at $3 per share. Bastion wants at least $3.50 and seeks to exclude strategic advisor warrants.
According to Bastion’s statement, those warrants went to an entity controlled by the brother of SkyAI’s chief investment officer. The investor also renewed its demand for a complete board overhaul.
Its objections follow September voting that delivered more withheld votes than support for all five directors. Despite that result, the directors retained their seats.
The proposed SkyAI buyback is expected to open around October 15 and run for 10 business days. Conditions include SOL remaining above $100 and at least 50% participation in each securities class. Bastion wants both conditions removed. The filing states that the offer has not commenced and may not proceed.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. CoinCryptoNewz is not responsible for any losses incurred. Readers should do their own research before making financial decisions.
