Kanen urges Real Good Food against conducting potential management buyout

Kanen Wealth Management, which identifies itself as the owner of approximately 9.2% of the Real Good Food Company Class A Common Stock outstanding, issued a public letter to the company’s board of directors, in which it stated in part: “Given our ownership of the Company, we recently requested representation on the Company’s board of directors but were rejected. We remain extremely displeased with your decision and feel that it was made to protect the control that Mr. Freeman, Mr. Law, and Mr. Chappelle currently have over the Company, rather than for the best interest of non-insider shareholders. We note that the current Board has served since 2020 and during that time over 85% of shareholder value has been destroyed! Based on our interaction with Mr. Bryan Freeman, we feel it’s appropriate to warn the current management and Board against conducting a potential management buyout of remaining shares not owned by management and the Board. It is our strong opinion that the Board has attempted to keep KWM off of the Board because it potentially plans on buying RGF shares at a premium, but nonetheless a deep discount to the peer group multiples of 3-3.5x revenue. We base this assertion on commentary directly from Mr. Freeman that implied as such… As the Company’s largest shareholder, we believe in the long-term prospects of this brand. We feel that the Company’s low-glycemic, high-protein, and healthy products fill an unmet need in the refrigerated/frozen marketplace. RGF Board – if you have nefarious intentions of taking any actions in this manner, receive our message and know that we will be watching and will oppose you. We will not allow shareholders to be taken advantage of.”