Shareholder Update: Lifeway Foods Key Developments Ahead

Update on Lifeway Foods, Inc. Shareholder Actions

Edward and Ludmila Smolyansky, significant shareholders of Lifeway Foods, Inc. (NASDAQ: LWAY), are urging fellow shareholders to engage in an ongoing consent solicitation aimed at reshaping the Board of Directors. They assert that they currently control approximately 26% of the company's outstanding shares, and their recent update explains the importance of this process.

Building Momentum in Consent Solicitation

"Our outreach program is fully underway, and the momentum is growing behind our consent solicitation," noted the Smolyanskys. Encouragement stems from positive responses among fellow shareholders who share concerns regarding the current Board's actions.

Board's Response to Consent Solicitation

Despite the ongoing solicitation, Lifeway Foods issued a statement claiming that the consent solicitation is inadequate as proper notice has not been given to shareholders and no record date has been established. The Board's assertion has led to a call for fellow shareholders to dismiss the Smolyanskys' recent efforts.

Concerning Board Actions

In a striking development, recent filings suggest a mismatch between the Board's statements and their actions. The leadership indicated earlier that a potential offer from Danone at $27 per share significantly undervalued the company, an assertion that was cited as justification for adopting anti-takeover measures.

Director Activity Indicates Concerns

Moreover, Jason Scher, the lead independent director, has made headlines by selling nearly all of his shares, retaining only a single share. This raises eyebrows and leads the Smolyanskys to question why such action does not violate the company's own stock ownership policy, which mandates significant shareholding by directors.

Challenges to Accountability

The Smolyanskys openly criticized the Board, stating, "Director Scher's selling off nearly all of his shares is a troubling indicator of the Board's real plans for Lifeway Foods and its impact on stock value." The Smolyanskys urge their fellow shareholders to view these actions critically.

Mastering the Consent Process

As part of their appeal, the Smolyanskys are requesting shareholders to sign and return WHITE consent cards following the guidelines laid out in their definitive consent statement. They emphasize the importance of shareholder unity in achieving necessary changes to the Board structure.

Conclusion and Future Actions

In closing, the Smolyanskys are calling for active engagement from Lifeway Foods’ shareholders to ensure that the company is held accountable for its actions. They believe that through cooperation and decisive action, shareholders can influence meaningful changes for the betterment of Lifeway Foods.

Frequently Asked Questions

What is the current status of the consent solicitation by the Smolyanskys?

The Smolyanskys are actively soliciting consent to change the Board of Directors at Lifeway Foods, with significant shareholder support reported.

Why does the Board oppose the Smolyanskys' consent solicitation?

The Board claims the solicitation lacks adequate notice and a record date, urging shareholders to disregard the Smolyanskys' actions.

What actions has the lead independent director taken recently?

The lead independent director, Jason Scher, sold nearly all his shares, which prompted concern regarding Board accountability and strategy.

How can shareholders participate in the consent solicitation?

Shareholders are encouraged to sign and return WHITE consent cards based on instructions from the Smolyanskys' definitive consent statement.

What message do the Smolyanskys want to convey to Lifeway Foods shareholders?

The Smolyanskys want shareholders to unite to hold the Board accountable and influence positive changes within the company.

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