Lifeway Foods says dissident nominees ‘unfit to serve’ on board

Lifeway Foods (LWAY) issued a statement in response to Edward Smolyansky’s intent to nominate George Sent, Managing Director of Cascadia Capital, and the Dissident for election to the Company’s Board of Directors, which read, in part, “The track record of the Dissident Nominees demonstrates they are unfit to serve on the Company’s Board of Directors and lead the Company and pose a clear risk to shareholder value. The Dissident Nominees have disqualifying issues raising ethical concerns.Ed Smolyansky: Terminated for cause as Lifeway’s COO in 2022; Intoxicated on multiple occasions during the performance of his duties while an employee and director of Lifeway; Subject to an emergency protection order prohibiting him from communicating with or going near Lifeway’s CEO, Julie Smolyansky; Founded a direct competitor of Lifeway; Defaulted on a $10.4M mortgage; Created multiple false social media accounts to post negative false statements about Lifeway, including while he was serving as a Director of Lifeway. Ludmila Smolyansky, the Dissident’s mother, with whom the Dissident files Schedule 13Ds and votes: Facing over $2.3M in federal and state tax liens. George Sent, Managing director of Cascadia Capital: As Lifeway’s former Lead Independent Director and Chair of the special committee that investigated the Dissident’s misconduct and recommended removing several of his titles and responsibilities, Mr. Sent’s sudden willingness to align himself with the Dissident is a disturbing reversal of principle that underscores questionable judgement and deeply concerning ethics. The Dissident’s personal financial distress and that of Ludmila Smolyansky, his mother, and the limited amount of shares they can sell in the aggregate each calendar year seem to be fueling their demands for a sale of the Company at any price and could cause the Dissident Nominees to vote in ways that help the Dissident and his mother personally but are not in the best interests of other shareholders…Under the current Board as adjusted in 2026, Lifeway is well positioned for continued success, whether as an independent company or in a transaction that achieves a compelling value for Lifeway shareholders. Replacing any of the Company’s current directors with the dissident candidates is not in the best interests of Lifeway or its shareholders. We urge you to reject the Dissidents’ solicitation on behalf of the Dissident Nominees and the Dissident’s proposal and protect the value of your investment.”