Bastion Trading, which owns roughly 9.99% of SkyAI, has raised questions about the company's recent sale of most of its Solana holdings and said it will not tender its shares at $3 each unless the board addresses its concerns. Bastion has also urged other investors to delay participation in the proposed buyback.
Unexplained Gap in Solana Holdings
SkyAI reported holding more than 2 million SOL on September 14, then worth roughly $207 million. On October 11, the company said it had sold about 1 million tokens and retained roughly 1 million. However, an October 13 Securities and Exchange Commission filing placed SkyAI's remaining balance near 600,000 SOL, indicating a decline of at least 70% since September.
Bastion identified a gap of roughly 400,000 tokens between the two disclosures and demanded that SkyAI provide complete transaction records, including dates, amounts, prices, fees, and proceeds. The firm also requested records showing how directors reviewed and approved the sales and asked why SkyAI had not announced the transactions to shareholders sooner.
Broader Governance Disputes
The Solana sale dispute compounds existing shareholder tensions. At SkyAI's September shareholder meeting, each of the five directors received more votes to withhold support than votes in favor, although the company's election rules allowed them to remain in office.
Bastion has renewed its demand for independent directors and a committee to examine the buyback. The firm also opposes adviser warrants, citing their award to a company controlled by SkyAI's investment chief's brother. SkyAI separately rejected Forward Industries' takeover proposal.
Buyback Details and Conditions
SkyAI plans to offer $3 per share or an eligible warrant and buy up to 95% of each class. Bastion is pushing for at least $3.50 and restrictions on insider participation. The company expects to begin the offer around October 15, subject to conditions including SOL staying above $100. According to its filing, SkyAI had gathered about 80% of the required cash for the roughly $201 million buyback.
