Bastion Trading Challenges SkyAI Tender Offer Price and Board Composition

Background Context

SkyAI, Inc. has announced a cash tender offer to buy back nearly all of its own stock with cash raised from selling Solana. One of its biggest shareholders, Bastion Trading Limited, has publicly challenged the company's proposed tender offer on October 14.

The Offer

SkyAI (NASDAQ: SKYA) has planned to buy up to 95% of its common stock at $3.00 per share. The offer also covers three classes of warrants. The total maximum value of the deal is approximately $201 million. Part of that cash comes from the company's recent sales of its Solana holdings.

Bastion's Complaints

Bastion's central complaint is disclosure. The company has reportedly sold around 70% of its SOL holdings. The research puts that at roughly 1 million SOL sold, with SkyAI retaining somewhere between 600,000 and 1 million SOL. Bastion is demanding detailed disclosures about the tender offer and the treasury liquidation behind it.

Demands

Bastion wants the offer raised to at least $3.50 per share. Its reasoning: by Bastion's estimate, SkyAI's net asset value sits at about $3.30 per share. Beyond the money, Bastion has raised questions about board legitimacy. It is pushing for board reconstitution.

The tender fight is not SkyAI's only recent corporate drama. The company also rejected an unsolicited proposal from Forward Industries. For SkyAI shareholders, the immediate decision is whether $3.00 is good enough. The offer delivers a meaningful premium to where the stock traded just before the announcement. But Bastion's NAV estimate of $3.30 per share gives holders a reason to wait and see whether pressure produces a better number.

Conclusion

Bastion's challenges to SkyAI's tender offer are significant, and the outcome will have implications for the company's shareholders and the Solana ecosystem.