#United States #Lifeway Foods #Morton Grove #Shareholder Rights #kefir products

Lifeway Foods Extends Shareholder Rights Plan

Lifeway Foods, Inc. (Nasdaq: LWAY), a prominent name in the market for kefir and fermented probiotic products, has recently made headlines with a significant update concerning its Shareholder Rights Plan. On October 29, 2025, the company's Board of Directors announced an amendment to extend the expiration of this plan for an additional year, a decision made with the well-being of both the company and its shareholders in mind.

What is the Shareholder Rights Plan?

The Rights Plan serves as a protective measure designed to safeguard the interests of all shareholders against any potential hostile takeovers or acquisitions that could occur without the individuals receiving proper compensation for their shares. Lifeway’s Board concluded that circumstances could lead to one or more shareholders potentially gaining control over the company, possibly without providing fair value to the other shareholders.

This conclusion stemmed from an analysis of Lifeway’s ownership structure, which shows a high concentration of shares held by a few entities. Such an ownership landscape presents risks where additional shares could be acquired by existing shareholders or larger holders might sell off their shares, creating a path for control over the company. This not only raises the specter of de facto control being achieved but also increases the possibility that the acquirer's interests would not align with other shareholders’ interests.

Importance of the Extension

The extension of the Rights Plan is grounded in Lifeway’s commitment to prioritizing shareholder value. The Board believes that ensuring all stakeholders have the chance to maximize their investment's worth is crucial. By extending the Rights Plan until October 29, 2026, Lifeway aims to deter tactics that could lead to shifts in control without adequate compensation.

Moreover, the Board’s decision to extend this plan is not a reaction to any specific takeover bid, which importantly highlights Lifeway’s proactive approach to corporate governance, rather than a defensive maneuver against an immediate threat.

Continuous Monitoring

As part of this strategy, Lifeway Foods intends to continue closely monitoring the market dynamics and any developments concerning its shareholder base. This vigilance is essential in assessing the potential for significant sales that could lead to further stock accumulation. The management reiterates its focus on stability and fair treatment for all shareholders.

The specifics of the Rights Plan will be elaborated in a Current Report on Form 8-K to be filed with the Securities and Exchange Commission, ensuring transparency throughout the process.

However, it is not just the protective aspects of the Rights Plan that make headlines. Lifeway Foods is also recognized for its contribution to the health-focused beverage market, standing out as a leader in kefir production and probiotic health benefits.

About Lifeway Foods

Lifeway has been lauded not only for its delicious probiotic kefir but also for its commitment to quality and innovation. Their kefir products suit a variety of dietary needs and are currently available to consumers across the United States and in several international markets including Mexico, Ireland, South Africa, the United Arab Emirates, and France.

The company has received multiple accolades, affirming its status as a major player in the food and beverage sector. As it addresses shareholder interests, Lifeway remains firmly focused on growth and the development of its product lines, such as the ProBugs® range for children and its diverse selection of cheese products.

Overall, Lifeway Foods' decision to extend its Shareholder Rights Plan represents a combination of strategic foresight and genuine regard for shareholder welfare. This proactive stance enhances their market position while maintaining investor trust, critical benchmarks for ongoing business success.

For further information on Lifeway Foods and its extensive product range, visit their website at lifewayfoods.com.

For questions or additional comments, Derek Miller, Lifeway Foods' Vice President of Communications, is available for contact, as well as the external financial advisor, Evercore, and legal counsel from Sidley Austin LLP.

Ultimately, this move highlights the intricate balance of corporate accountability and market strategy as Lifeway navigates through the complexities of modern business environments.