Lifecore Biomedical (LFCR) to Explore Strategic Alternatives

Lifecore Biomedical, Inc. (“Lifecore” or the “Company”), a fully integrated contract development and manufacturing organization (“CDMO”), today announced that the Board of Directors of the Company (the “Board”) intends to initiate a process to evaluate the Company’s potential strategic alternatives to maximize value for stockholders. As part of the process, the Board intends to consider a full range of strategic alternatives, which could include a sale of the Company, potential debt or equity financing transactions, or other possible strategic transactions.

The Company has retained Morgan Stanley & Co. LLC as its financial advisor to assist with the strategic review process, and has retained Latham & Watkins LLP as its legal counsel.

The Company expects to commence its strategic process once the Company has obtained a forbearance agreement from its lenders that would provide forbearance and waivers under the Company’s existing credit agreements necessary to facilitate the Company’s strategic review process.

James G. Hall, President and Chief Executive Officer of Lifecore, commented, “The management team and the Board intend to explore viable options that will maximize value for our stockholders. Regardless of the process or outcome, Lifecore will remain committed to serving our customers, supporting our employees and growing our business. We operate in a dynamic industry that is underpinned by growing demand for specialized CDMO services, which Lifecore is well positioned to capitalize on today, and in the years ahead, with its more than 40 years of expertise developing complex products.”

The Company has not set a timetable for completion of this strategic review process, nor has it made any decisions related to its strategic alternatives at this time, and does not intend to comment further on the status of this process. There can be no assurance that this strategic review will result in the Company pursuing a transaction or that any transaction, if pursued, will be completed on attractive terms, or at all. Similarly, there can be no assurance that the Company will be able to reach a forbearance agreement with its lenders on favorable terms, on terms that will allow the Company to run its strategic review process, or at all.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities nor shall there be any offer or sale of any securities in any state or other jurisdiction in which or to any person to whom such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or other jurisdiction.

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