LWAY - Lifeway Foods holder Kanen Wealth urges company to sell itself

2023-06-08 09:00:00 ET

A Lifeway Foods ( NASDAQ: LWAY ) shareholder is urging the company to sell itself and believes the maker of kefir can fetch $15–$20 per share in a sale.

Kanen Wealth Management, which owns over 600,000 shares or a 4.1% stake in Lifeway Foods ( LWAY ), said it plans to vote in support of a recent board slate nominated by Edward and Ludmilla Smolyansky, who own 31% of Lifeway shares, according to a statement.

"We believe the current board and CEO have been mismanaging the business and not acting in the best interest of its shareholders," Kanen Wealth President/CEO David Kanen wrote in a letter to Lifeway's board on Thursday. "We further believe the company’s stock is undervalued, but cannot realize a greater value with the current CEO and board."

Last month Ludmila Smolyansky notified Lifeway ( LWAY ) that she was resigning from the board due to a disagreement with the board about her opinions on the business and management, according to an 8-K filing.

Yogurt maker Danone ( OTCQX:DANOY ) owns a ~24% stake in Lifeway Foods ( LWAY ).

More on Lifeway Foods

• Lifeway Foods: Making Hay On The Latest Market Trend
• Lifeway: Only Fairly Valued And Does Not Represent An Opportunity

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