Lemonade (LMND) Announces Early Lock-up Expiration Extension

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.

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