Lifeway Foods Responds to Unlawful Consent Solicitation
Lifeway Foods, Inc. (NASDAQ: LWAY), a prominent supplier of Kefir and probiotic products, has recently addressed concerns regarding a consent solicitation by Edward and Ludmila Smolyansky. The Company urges its shareholders to disregard the recent statements made by the Smolyanskys, emphasizing their illegitimacy and lack of adherence to legal protocols.
Importance of Investor Engagement
Lifeway Foods prioritizes investor feedback and consistently aims to maximize shareholder value. The Company’s robust strategies have successfully yielded significant returns, including a remarkable 788% increase over five years prior to a recent unsolicited buyout proposal. Through sheer dedication, Lifeway has achieved approximately 100% revenue growth from fiscal year '19 to fiscal year '24. Management is optimistic about continuing this positive trajectory for the benefit of all shareholders.
Legal Issues Surrounding the Smolyanskys' Proposal
The consent solicitation statement filed by the Smolyanskys violates Illinois law and the Company's governing documents. Their submission inaccurately claims a record date for their proposals, despite lacking the necessary rights to do so. It also neglects to ensure all eligible shareholders receive adequate notification regarding proposed actions. As a result, this submission fails to meet legal standards and is deemed insufficient.
Shareholder Guidance
Given these concerns, Lifeway Foods strongly advises shareholders to disregard any communications from the Smolyanskys that breach legalities and the Company’s bylaws. The Board remains committed to transparent operations and protecting shareholder interests.
About Lifeway Foods, Inc.
Established as one of Forbes' Best Small Companies, Lifeway Foods, Inc. is recognized as the leading provider of Kefir, a probiotic-rich fermented beverage that supports gut health. In addition to its flagship drinkable Kefir, the company manufactures various cheese products and caters to younger consumers with its ProBugs line aimed at kids. Lifeway's tangy dairy products are accessible to customers in several countries including but not limited to the United States, Mexico, Ireland, South Africa, the United Arab Emirates, and France. More information about Lifeway's health-benefiting products can be explored at their website.
Additional Information for Shareholders
Lifeway Foods has plans to submit a proxy statement and related documents with the U.S. Securities and Exchange Commission (SEC) in connection with the upcoming shareholders’ meeting. It's vital for shareholders to read the definitive proxy statement and associated documents carefully, as these will provide crucial information regarding their rights and the Company’s governance.
Participants in Corporate Governance
The Board of Directors and specific executive officers are considered participants in the proxy solicitation process at the 2025 annual meeting. Detailed information regarding the interests of the Company's directors and officers—including their securities holdings—can be gathered from SEC filings. This ensures that all shareholders stay informed about their rights and any matters under consideration that may affect their stakes in the Company.
Company Contact Information
Perceptual Advisors
Dan Tarman
Email: [email protected]
Derek Miller
Vice President of Communications, Lifeway Foods
Email: [email protected]
Frequently Asked Questions
What prompted Lifeway Foods to respond?
Lifeway Foods responded to protect shareholder interests against unauthorized consent solicitations that violate laws.
How has Lifeway achieved shareholder return?
Lifeway has successfully implemented strategies that have led to a 788% return over five years.
What kind of products does Lifeway offer?
Lifeway specializes in Kefir, probiotic beverages, various cheeses, and products tailored for children.
Where are Lifeway products available?
Products are sold in multiple countries, including the United States, Mexico, and several European and Middle Eastern nations.
How can shareholders stay informed?
Shareholders are encouraged to review official proxy statements and filings for important updates regarding their investments.
