LFVN - LifeVantage Sends Letter to Stockholders and Releases Investor Presentation Detailing Success of Ongoing Transformation | Benzinga
Highlights Decisive Actions Taken by Board to Rebuild Senior Leadership Team and Develop New LV360 Strategy That Is Delivering Results
Urges Stockholders to Vote "FOR" LifeVantage's Seven Highly Engaged Directors on the WHITE Universal Proxy Card
SALT LAKE CITY, Oct. 16, 2023 (GLOBE NEWSWIRE) -- LifeVantage Corporation (NASDAQ:LFVN) ("LifeVantage" or the "Company,"), a leading health and wellness company with products designed to activate optimal health processes, today sent a letter to stockholders and released an investor presentation detailing the actions taken by the Company's Board of Directors (the "Board") over the last three years to rebuild the senior leadership team, develop a new strategic plan and reposition the Company for profitable growth.
These actions have led to significant stockholder value creation, with LifeVantage stock generating total shareholder returns of more than 100% in 2023, making LifeVantage one of the best performing stocks in the United States this year.
Despite these exceptional returns, two stockholders are seeking to replace half the independent directors on the Board.
The Board encourages all stockholders to vote "FOR" the Company's seven director candidates using the WHITE proxy card at the Company's upcoming 2024 annual meeting of stockholders, scheduled to be held on November 6, 2023.
The investor presentation is available here.
The full text of the letter follows:
October 16, 2023
Dear Fellow Stockholders:
Over the last three years, the Board of Directors (the "Board") of LifeVantage Corporation ("LifeVantage," the "Company," "we" or "us") has taken actions to rebuild the senior leadership team and develop a comprehensive new strategy to address the Company's challenges and opportunities. The culmination of these actions is our new LV360 strategy, which we announced in January 2023.
As you undoubtedly know, this year has been exceptional for LifeVantage and our stockholders. Through October 12, 2023, our stock has generated total shareholder returns of more than 100%, making LifeVantage one of the best performing stocks in the United States this year.
Today, we released a presentation describing how the Board and senior leadership team redirected the Company's strategy and operations to produce these exceptional results. The presentation also provides information on our plans to continue our trajectory of extraordinary returns with our new strategy.
The presentation can be viewed by scanning the QR code below or by visiting: https://tinyurl.com/t3xtkupz.
Key highlights from the presentation include:
- The Board took decisive action to rebuild the senior leadership team and develop a new strategy to reposition the Company. In recognition of the changes accelerated and amplified by the pandemic, the Board initiated a process to transform the business, beginning by rebuilding the senior leadership team. Since September 2020, we have appointed or promoted nine new senior executives, including our CEO. The Board also enhanced its own composition in February 2022, by appointing Cynthia Latham, who has over 35 years of direct selling, strategic market planning and product development experience.
- The Board deliberately and systematically strengthened the business in preparation for the launch of our new LV360 strategy. The Board worked closely with the new leadership team to plan, design and execute a new strategy to address the Company's challenges and opportunities. Under the Board's stewardship, we developed a new industry-leading, modernized compensation plan, enhanced our digital tools to support consultants, developed and launched additional products to align with customer needs and emerging trends, expanded into new geographies and invested in social media to drive customer and consultant engagement.
- The Company's transformation is driving improved results and delivering value for stockholders. Since the launch of our LV360 strategy, we have reported consecutive quarters of revenue and Adjusted EBITDA growth and higher Adjusted EBITDA margins. Our improved operational performance has created value for stockholders; our stock has generated a total return of more than 100% since the announcement of our LV360 plan in January 2023, and we now trade at a premium valuation multiple to our peers.
- A group of stockholders (the "Radoff-Sudbury Group") launched a misguided, costly and disruptive proxy contest at a critical time in the Company's transformation. Despite our attempts to engage constructively with the Radoff-Sudbury Group for more than two years, it has failed to offer meaningful ideas for improving and growing our business. Nevertheless, we sought to interview the Radoff-Sudbury Group's nominees and made good faith attempts at a resolution; all of our efforts have been rejected. Now, the Radoff-Sudbury Group is seeking to replace half of our independent directors, including the Chairman of our Board, the Chair of our Compensation Committee and the three individuals comprising our entire Audit Committee, which we believe would significantly weaken the Board and disrupt our progress.
- The Radoff-Sudbury Group's nominees would not be additive to our Board. Two of its nominees have large ownership stakes in competing businesses, and its third nominee serves as President of a SPAC that is trying to acquire a direct selling business, which we believe creates multiple potential conflicts of interest. We do not believe any of the Radoff-Sudbury Group nominees would enhance our Board; rather, we believe their election is more likely to destabilize our business and hinder our progress.
The Board strongly urges stockholders to vote "FOR" ALL of the Company's highly qualified and experienced director candidates using the WHITE universal proxy card.
Stockholders who have any questions or need assistance voting their shares are encouraged to contact the Company's proxy solicitor, Morrow Sodali LLC, at (800) 662-5200 or LFVN.info@investor.morrowsodali.com.
Sincerely,
The LifeVantage Board of Directors
About LifeVantage Corporation
LifeVantage Corporation (NASDAQ:LFVN), the activation company, is a pioneer in nutrigenomics, the study of how nutrition and naturally occurring compounds affect human genes to support good health. The Company engages in the identification, research, development, formulation and sale of advanced nutrigenomic activators, dietary supplements, nootropics, pre- and pro-biotics, weight management, skin and hair care, bath & body, and targeted relief products. The Company's line of scientifically-validated dietary supplements includes its flagship Protandim® family of products, LifeVantage® Omega+, ProBio, IC Bright®, Daily Wellness, Rise AM, Reset PM, and D3+ dietary supplements, the TrueScience® line of skin, hair, bath & body, and targeted relief products. The Company also markets and sells Petandim®, its companion pet supplement formulated to combat oxidative stress in dogs, Axio® its nootropic energy drink mixes, and PhysIQ, its smart weight management system. LifeVantage was founded in 2003 and is headquartered in Lehi, Utah. For more information, visit www.lifevantage.com.
Cautionary Note Regarding Forward Looking Statements
This document contains forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Words and expressions reflecting optimism, satisfaction or disappointment with current prospects, as well as words such as "believe," "will," "hopes," "intends," "estimates," "expects," "projects," "plans," "anticipates," "look forward to," "goal," "may be," and variations thereof, identify forward-looking statements, but their absence does not mean that a statement is not forward-looking. The declaration and/or payment of a dividend during any quarter provides no assurance as to future dividends, and the timing and amount of future dividends, if any, could vary significantly in comparison both to past dividends and to current expectations. Examples of forward-looking statements include, but are not limited to, statements we make regarding executing against and the benefits of our key initiatives, future growth, including geographic and product expansion, the impact of COVID-19 on our business, expected financial performance, and expected dividend payments in future quarters. Such forward-looking statements are not guarantees of performance and the Company's actual results could differ materially from those contained in such statements. These forward-looking statements are based on the Company's current expectations and beliefs concerning future events affecting the Company and involve known and unknown ...