RH Announces Chairman & CEO Gary Friedman Plans to Exercise Expiring Stock Options and Sell a Portion of the Shares to Fund the Exercise and Satisfy Tax Obligations
December 08 2022 - 3:05PM
Business Wire
RH (NYSE: RH) announced today that Chairman & Chief
Executive Officer Gary Friedman intends to sell approximately 0.7
million shares of common stock related to 1.0 million options that
are set to expire in connection with the ten-year anniversary of
the grant date of July 2013. Mr. Friedman plans to use the sale
proceeds to fund the option exercise and satisfy the resulting tax
obligations.
Following the option exercise and sale, Mr. Friedman will retain
beneficial ownership of approximately 5.0 million shares,
representing approximately 19% of RH’s common stock
outstanding.
ABOUT RH
RH (NYSE: RH) is a curator of design, taste and style in the
luxury lifestyle market. The Company offers collections through its
retail galleries, source books, and online at RH.com, RHModern.com,
RHBabyandChild.com, RHTEEN.com and Waterworks.com.
FORWARD-LOOKING STATEMENTS
This Release contains forward-looking statements within the
meaning of the federal securities laws, including without
limitation, statements regarding the intention of our Chairman
& Chief Executive Officer’s to exercise 1.0 million options
that are set to expire at the ten-year anniversary of their
original grant date of July 2013 and to sell approximately 0.7
million shares of our common stock in order to fund the option
exercise price and satisfy the resulting tax obligations;
expectations concerning the timing of such events or the price that
Mr. Friedman might receive for such shares of common stock; the
number of shares that may need to be sold in order to fund the
exercise price and related tax obligations; and any statements or
assumptions underlying any of the foregoing. You can identify
forward-looking statements by the fact that they do not relate
strictly to historical or current facts. These statements may
include words such as “anticipate,” “estimate,” “expect,”
“project,” “plan,” “intend,” “believe,” “may,” “will,” “should,”
“likely” and other words and terms of similar meaning in connection
with any discussion of the timing or nature of future events. We
cannot assure you that future developments affecting us will be
those that we have anticipated. Important risks and uncertainties
that could cause actual results to differ materially from our
expectations include, among others: changes related to the share
price of our common stock; risks related to the global outbreak of
the COVID-19 virus including variants of such virus and any ongoing
impact on our business related to the virus; risks related to
natural disasters including earthquakes, fire and weather as well
as other conditions outside of our control including outbreak of
hostilities, war or civil; risks related to our dependence on key
personnel and any changes in our ability to retain key personnel;
successful implementation of our growth strategy; risks related to
the number of new business initiatives we are undertaking;
successful implementation of our growth strategy including our real
estate transformation and the number of new Gallery locations that
we seek to open and the timing of openings; uncertainties in the
current performance of our business including a range of risks
related to our operations as well as external economic factors;
general economic conditions and the housing market as well as the
impact of economic conditions on consumer confidence and spending;
changes in customer demand for our products; our ability to
anticipate consumer preferences and buying trends, and maintaining
our brand promise to customers; decisions concerning the allocation
of capital; factors affecting our outstanding convertible senior
notes or other forms of our indebtedness; changes in consumer
spending based on weather and other conditions beyond our control;
strikes and work stoppages affecting port workers and other
industries involved in the transportation of our products; our
ability to obtain our products in a timely fashion or in the
quantities required; our ability to employ reasonable and
appropriate security measures to protect personal information that
we collect; our ability to support our growth with appropriate
information technology systems; risks related to our sourcing and
supply chain including our dependence on imported products produced
by foreign manufacturers and risks related to importation of such
products including risks related to tariffs and other similar
issues, as well as those risks and uncertainties disclosed under
the sections entitled “Risk Factors” and “Management’s Discussion
and Analysis of Financial Condition and Results of Operations” in
RH’s most recent Form 10-K and Form 10-Q filed with the Securities
and Exchange Commission, and similar disclosures in subsequent
reports filed with the SEC, which are available on our investor
relations website at ir.rh.com and on the SEC website at
www.sec.gov. Any forward-looking statement made by us in this
release speaks only as of the date on which we make it. We
undertake no obligation to publicly update any forward-looking
statement, whether as a result of new information, future
developments or otherwise, except as may be required by any
applicable securities laws.
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PRESS CONTACT truthgroup@RH.com
INVESTOR RELATIONS CONTACT Allison Malkin, 203.682.8225,
allison.malkin@icrinc.com
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