Lemonade Announces Early Lock-up Expiration Extension
September 29 2020 - 8:00AM
Business Wire
Lemonade, Inc. (NYSE: LMND) (the “Company”) today announced an
extension of the early lock-up expiration date pursuant to the
terms of lock-up agreements with the underwriters (“lock-up
agreements”) of its initial public offering (“IPO”) of common
stock, par value $0.00001 per share, until one business day
following the release of earnings for the third quarter of
2020.
In connection with the Company’s IPO, all of its executive
officers, directors, and substantially all of the holders of the
Company’s common stock, or securities exercisable for or
convertible into the Company’s common stock outstanding immediately
prior to the IPO (the “securities”), are parties to market standoff
agreements with the Company or entered into lock-up agreements that
restrict their ability to sell or transfer their securities, or
otherwise engage in certain transactions related to their
securities, for a period of up to 180 days after July 1, 2020 (the
“lock-up period”).
Pursuant to the lock-up agreements, the lock-up period is
scheduled to end with respect to 33% of the securities subject to
each lock-up agreement on September 29, 2020, which falls within
the Company’s quarterly blackout period. Therefore, in accordance
with the lock-up agreements, the lock-up period with respect to 33%
of the securities subject to each lock-up agreement will end one
business day following the release of earnings for the third
quarter, which date will be separately announced (the “early
lock-up expiration extension date”). The Company will also release
the same portion of securities restricted under the market standoff
agreements on the early lock-up expiration extension date.
The Company estimates that, based on the number of shares of the
Company's common stock, which as of September 29, 2020 are: (i)
outstanding or (ii) subject to stock options that have vested,
approximately 15,058,356 shares of the Company’s common stock may
become eligible for sale in the public market at the open of
trading on the early lock-up expiration extension date. This
includes 9,899,362 shares held by affiliates which are subject to
volume and other restrictions of Rule 144 of the Securities Act of
1933, as amended.
About Lemonade
Lemonade offers renters, homeowners, and pet health insurance in
the United States, and contents and liability insurance in Germany
and the Netherlands, through its full-stack insurance carriers.
Powered by artificial intelligence and behavioral economics,
Lemonade set out to replace brokers and bureaucracy with bots and
machine learning, aiming for zero paperwork and instant everything.
A Certified B-Corp, Lemonade gives unused premiums to nonprofits
selected by its community, during its annual Giveback. Lemonade is
currently available for most of the United States, Germany and the
Netherlands, and continues to expand globally.
Follow @lemonade_inc on Twitter for updates.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. All statements contained in this press release that do not
relate to matters of historical fact should be considered
forward-looking statements. These statements are neither promises
nor guarantees, but involve known and unknown risks, uncertainties
and other important factors that may cause our actual results,
performance or achievements to be materially different from any
future results, performance or achievements expressed or implied by
the forward-looking statements, including, but not limited to, the
following: our history of losses and the fact that we may not
achieve or maintain profitability in the future; our ability to
retain and expand our customer base; the fact that the “Lemonade”
brand may not become as widely known as incumbents’ brands or the
brand may become tarnished; the denial of claims or our failure to
accurately and timely pay claims; our ability to attain greater
value from each user; the novelty of our business model and its
unpredictable efficacy and susceptibility to unintended
consequences; the possibility that we could be forced to modify or
eliminate our Giveback, which could undermine our business model;
the results of examinations by our primary state insurance
regulator that could result in adverse examinations findings and
necessitate remedial actions or give rise to regulatory orders
requiring remedial, injunctive, or other corrective action; our
limited operating history; our ability to manage our growth
effectively; the impact of intense competition in the segments of
the insurance industry in which we operate on our ability to attain
or increase profitability; the unavailability of reinsurance at
current levels and prices, which could limit our ability to write
new business; our ability to renew reinsurance contracts on
comparable duration and terms to those currently in effect; our
exposure to counterparty risks as a result of reinsurance; the loss
of personal customer information, damage to our reputation and
brand, or harm to our business and operating results as a result of
security incidents or real or perceived errors, failures or bugs in
our systems, website or app; our actual or perceived failure to
protect customer information and other data, respect customers’
privacy, or comply with data privacy and security laws and
regulations; our ability to comply with extensive insurance
industry regulations and the need to incur additional costs or
devote additional resources to comply with changes to existing
regulations; our exposure to additional regulatory requirements
specific to other vertical markets that we enter or have entered,
including auto, pet and life insurance, and the need to devote
additional resources to comply with these regulations; and our
inability to predict the lasting impacts of COVID-19 to our
business in particular, and the global economy generally. These and
other important factors are discussed under the caption “Risk
Factors” in our Quarterly Report on Form 10-Q for the period ended
June 30, 2020 and our other filings with the Securities and
Exchange Commission could cause actual results to differ materially
from those indicated by the forward-looking statements made in this
press release. Any such forward-looking statements represent
management’s beliefs as of the date of this press release. While we
may elect to update such forward-looking statements at some point
in the future, we disclaim any obligation to do so, even if
subsequent events cause our views to change.
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Lisa Horton lemonade@astrskpr.com
Lemonade (NYSE:LMND)
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