2023-06-16 10:11:37 ET
Lifeway Foods ( NASDAQ: LWAY ) responded on Friday to the push by activist investor by Kanen Wealth Management to pursue a sale and criticisms on the competency of management.
The company noted the board's Audit & Corporate Governance Committee has retained Kroll Securities as its exclusive financial advisor to support an ongoing evaluation of strategic alternatives.
"We are always open to considering all available avenues to maximize shareholder value. While we are confident in the company's current strategy, we are also committed to exploring strategic alternatives that might be in the best interests of all shareholders," read a statement from the board.
Lifeway ( LWAY ) also defended the track record of management after Kanen Wealth expressed concerns.
"Lifeway has a highly qualified Board and management team that collectively possess the right skills and experience to continue driving positive performance and creating value for shareholders. Chief Executive Officer Julie Smolyansky and the entire leadership team are successfully executing our Lifeway 2.0 strategy to optimize growth, productivity and profitability."
The board noted it is committed to maintaining high standards of corporate governance and has a strong, clearly defined Lead Independent Director role. In regard to executive compensation, the board maintained it consistently engages with shareholders and has listened to concerns.
The Kanen letter to shareholders from the activist investor was said to be riddled with inaccuracies, mischaracterizations and blatantly false statements that demonstrate an ignorance of the Lifeway business.
Shares of Lifeway Foods ( LWAY ) fell 1.57% in early trading on Friday to cut into the +20% year-to-date rally.
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Lifeway Foods defends itself after activist investor comes out firing