SkyAI has sold its entire Solana treasury and launched a cash tender offer of up to $201.3 million. The $3 share price remains contested by shareholder Bastion Trading, which demanded at least $3.50.
SkyAI sold its entire Solana treasury and launched a cash tender offer of up to $201.3 million, the Nasdaq-listed company said in an Oct. 19 disclosure. The company, formerly Sharps Technology, reported approximately $223.8 million in cash and no SOL as of Oct. 16, when the offer began.
The cash balance now exceeds the maximum repurchase price before fees. SkyAI says it will fund purchases without borrowing or a financing condition, and it dropped a planned requirement that SOL remain above $100 during the offer.
A reversal of the treasury strategy
The wind-down reverses a strategy SkyAI defended a month earlier. In a Sept. 14 statement, it reported more than 2 million SOL, nearly all of it staking with institutional validators.
An Oct. 14 update put the average price of SOL sold at $107.51 per token, net of fees, with sales spread across BitGo, Anchorage and Coinbase. By comparison, The Defiant calculated a historical average accounting cost of about $190.44 per SOL at June 30. That portfolio average does not establish the cost basis of the specific tokens sold.
Tender keeps contested terms
The offer targets up to 95% of each covered class: common shares, cash pre-funded warrants, cryptocurrency pre-funded warrants and strategic warrants. The price is $3 per share, and eligible warrants receive $3 less their $0.0001 exercise price.
However, the price and strategic-warrant eligibility remain at odds with Bastion Trading's Oct. 14 demands. The shareholder, which said it and certain affiliates beneficially owned approximately 9.99% of outstanding common stock, sought at least $3.50 per share or eligible warrant. Bastion said it would not participate unless its concerns were satisfactorily addressed.
Bastion also wanted directors and executives to refrain from tendering. The definitive tender materials instead allow them to participate on the same terms as other holders.
Minimum participation conditions remain: 50% of the shares offered for tender, 50% of the two pre-funded warrant classes combined, and 50% of the strategic warrants offered. SkyAI says it intends to remain Nasdaq-listed and use its remaining cash to develop its AI financial platform.
The offer expires one minute after 11:59 p.m. ET on Oct. 29 unless extended or terminated earlier.
Source: The Defiant
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