European Wax Center, Inc. Announces Inducement Grants Under Nasdaq Listing Rule 5635(c)(4)

Rhea-AI Summary

European Wax Center (NASDAQ: EWCZ), the leading U.S. franchisor of out-of-home waxing services, has announced equity grants for its new Chief Financial Officer Thomas Kim. The grants, effective April 7, 2025, include:

• 200,000 restricted stock units (RSUs) of Class A common stock
• 310,000 stock options at $3.51 exercise price
• 212,500 stock options at $9.00 exercise price
• 212,500 stock options at $12.00 exercise price

The RSUs will vest in equal installments over four years, while all stock options will fully vest on April 7, 2029. These grants were made under the company's 2025 Inducement Plan, specifically designed for new employees as per Nasdaq Rule 5635(c)(4).

Positive

• New CFO appointment demonstrates corporate governance stability
• Structured vesting schedule helps retain key executive talent
• Multiple strike prices in options grant align executive interests with stock price appreciation

Negative

• Potential dilution from 935,000 new shares (RSUs and options combined)
• Some options granted at significant premium to current stock price ($9.00 and $12.00 vs $3.51)

PLANO, Texas, April 07, 2025 (GLOBE NEWSWIRE) -- European Wax Center, Inc. (NASDAQ: EWCZ) (the “Company” or “European Wax Center”), the leading franchisor and operator of out-of-home waxing services in the United States, announced that effective as of April 7, 2025, and in connection with the previously announced appointment of Thomas Kim as the Company’s Chief Financial Officer, the Company’s Board of Directors approved grants of (i) restricted stock units (“RSUs”) covering 200,000 shares of the Company’s Class A common stock (the “Kim RSUs”), (ii) non-qualified stock option awards to purchase 310,000 shares of the Company’s Class A common stock with an exercise price of $3.51, which is equal to the closing price of the Company’s Class A common stock on the Nasdaq Stock Market on April 7, 2025, (iii) non-qualified stock option awards to purchase 212,500 shares of the Company’s Class A common stock with an exercise price of $9.00, and (iv) non-qualified stock option awards to purchase 212,500 shares of the Company’s Class A common stock with an exercise price of $12.00 ((ii), (iii) and (iv) collectively, the “Kim Options”).

The Kim RSUs and Kim Options were granted pursuant to the Company’s 2025 Inducement Plan. The Kim RSUs will vest in equal installments on each of the first four anniversaries of April 7, 2025, and the Kim Options will vest in full on the fourth anniversary of April 7, 2025, in each case subject to Mr. Kim’s continued employment with the Company on each such date. The Kim RSUs and Kim Options are subject to the terms and conditions of the Company’s 2025 Inducement Plan and the terms and conditions of the RSU award agreement and stock option award agreement covering the applicable grant.

The Inducement Plan is used exclusively for the grant of equity awards to individuals who were not previously employees of the Company (or following a bona fide period of non-employment), as an inducement material to such individuals’ entering into employment with the Company, pursuant to Rule 5635(c)(4) of the Nasdaq Listing Rules. The Kim RSUs and Kim Options were granted as such inducement material to Mr. Kim entering into employment with the Company.

About European Wax Center, Inc.

European Wax Center, Inc. (NASDAQ: EWCZ) is the leading franchisor and operator of out-of-home waxing services in the United States. European Wax Center locations perform more than 23 million services per year, providing guests with an unparalleled, professional personal care experience administered by highly trained wax specialists within the privacy of clean, individual waxing suites. The Company continues to revolutionize the waxing industry with its innovative Comfort Wax® formulated with the highest quality ingredients to make waxing a more efficient and relatively painless experience, along with its collection of proprietary products to help enhance and extend waxing results. By leading with its values – We Care About Each Other, We Do the Right Thing, We Delight Our Guests, and We Have Fun While Being Awesome – the Company is proud to be Certified™ by Great Place to Work®. European Wax Center, Inc. was founded in 2004 and is headquartered in Plano, Texas. Its network, which includes more than 1,000 centers in 45 states, generated sales of $951 million in fiscal 2024. For more information, including how to receive your first wax free, please visit: https://waxcenter.com.

Investor Contact
European Wax Center, Inc.
Bethany Johns
Bethany.Johns@myewc.com
469-270-6888

Media Contact
Edelman Smithfield
Josh Hochberg & Ashna Vasa
EWCIR@edelman.com

Zeno Group
Sophia Tortorella
sophia.tortorella@zenogroup.com
312-752-6851

FAQ

What equity compensation package did EWCZ offer to its new CFO Thomas Kim?

EWCZ granted Thomas Kim 200,000 RSUs and 735,000 stock options at various strike prices ($3.51, $9.00, and $12.00), vesting over four years.

When will the EWCZ stock options granted to CFO Thomas Kim vest?

All stock options granted to Kim will fully vest on April 7, 2029, four years from the grant date.

How are the RSUs vesting schedule structured for EWCZ's new CFO?

The RSUs will vest in equal installments on each of the first four anniversaries of April 7, 2025.

What is the purpose of EWCZ's 2025 Inducement Plan?

The plan is exclusively for granting equity awards to new employees as an inducement for joining the company, complying with Nasdaq Rule 5635(c)(4).