Lifeway Foods shareholders demand resignations of CEO, certain directors

Ludmila and Edward Smolyansky, who beneficially own approximately 29% of the outstanding common stock of Lifeway Foods, announced their demand that the Company’s CEO, Julie Smolyansky, and certain of the Company’s other directors, resign from their positions. The Smolyanskys believe these actions are necessary to avoid further underperformance and mismanagement of Company assets, and that new leadership can deliver swift and significant changes to shareholders. The Smolyanskys’ previous campaign, which began in February 2022, called for replacing the Company’s CEO and commencing an exploration of the Company’s strategic alternatives. Lifeway’s shares rose approximately 50% following that disclosure. The Smolyanskys subsequently agreed to terminate their campaign in exchange for a commitment by the Company to, among other things, engage a nationally recognized financial advisor to assist it with the exploration of strategic alternatives. Edward Smolyansky stated, “Lifeway did not make a good faith effort to honor its obligations under our settlement agreement, and by February 2023 it was apparent that it had breached the agreement. In light of the board’s failures, we believe that even significant changes are needed, and are calling for resignations of each of the board’s directors, other than Juan Carlos Dalto, who we believe is the only qualified independent director.”