Major Vitacost.com Inc. Shareholder Calls on the CEO and Board to Sell the
Leading On-Line Vitamin Retailer after Nearly Four Years of Operating Losses
LOS ANGELES -- February 20, 2014
A shareholder with 7.7% of Vitacost.com Inc. (NASDAQ:VITC) common stock today
called on the CEO and Board to unlock shareholder value by putting the Company
up for sale.
Ryan Drexler, president and shareholder of Consac, LLC, said Vitacost has more
than two million customers and approximately $400 million in annual revenue
but continues to report operating losses and has seen its stock price decline
37% in the last six months.
In a letter to CEO Jeffrey J. Horowitz and the Board, Drexler said he believes
the public markets are unlikely to recognize the full value of the Company’s
market presence and distribution network.
“While I remain supportive of Vitacost.com and its growth potential as a major
on-line retailer, I am deeply concerned with the significant disparity that
exists between the value of the Company’s customer base and distribution
network and the trading range of its shares,” wrote Drexler, whose family
founded Country Life Vitamins in the 1970s.
“The only way to unlock this value for shareholders is to put the Company up
for sale,” he added. “The Company’s market share and distribution network will
be of interest to several significant industry players and other retailers,
who will be able to better leverage the Company’s strengths within a larger,
better capitalized entity.”
Drexler said in the letter that he had helped manage and grow Country Life
before he negotiated its sale in 2005 to Japanese conglomerate Kikkoman
Corporation, adding “to say the whole vitamin-related space is in my blood
would be an understatement.”
Drexler’s Consac, LLC owns 2.6 million shares totaling 7.7% of the Company.
About Consac, LLC
Consac, LLC ("Consac") invests in the securities of publicly traded and
venture-stage companies, primarily in the health and wellness space. Consac
may increase, decrease, dispose of or change the form or substance of its
investment in Vitacost.com for any or no reason, at any time. Consac also may
change its views about Vitacost.com at any time. Consac disclaims any
obligation to notify the market of any such changes.
The information and opinions contained in this press release and the letter
attached hereto are based on publicly available information about Vitacost.com
and other companies. Although Consac believes the statements it makes in this
press release and such letter are accurate in all material respects and do not
omit to state material facts necessary to make those statements not
misleading, Consac makes no representation or warranty, express or implied, as
to the accuracy or completeness of the statements contained in this press
release or such letter and expressly disclaims any liability relating to those
statements (or any inaccuracies or omissions therein). Thus, shareholders and
others should conduct their own independent investigation and analysis of
those statements and of Vitacost.com and any other companies to which those
statements may be relevant. Furthermore, some of the statements herein and in
the letter attached hereto are forward-looking statements, estimates,
projections and opinions. Such statements, estimates, projections and opinions
may prove to be substantially inaccurate and are inherently subject to
significant risks and uncertainties beyond Consac's control.
The statements that Consac makes herein and in the letter attached hereto are
not investment advice or a recommendation or solicitation to buy or sell any
securities, nor is Consac soliciting any proxy or other action from or by any
shareholder. Except where otherwise indicated, those statements speak as of
the date made, and Consac undertakes no obligation to correct, update or
revise those statements.
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