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As the Company reaches the first year of overhead restructuring in late 2023, it is announcing continued increases in fixed costs and the benefits of its incentive plan.
Toronto, Ontario, Oct. 01, 2024 (GLOBE NEWSWIRE) – MiniLuxe Holding Corp. (the “Company”) (TSXV: MNLX), today announced that it has granted 3,000,000 aggregate options with an exercise price of CDN $0.30 to certain executive officers of the Company as part of its ongoing program to grant equity options in lieu of cash compensation. In some executive leadership positions, equity-based options make up 30 to 100 percent of senior executives. the foundation wage compensation. Any new option awards continue to accrue from existing employee incentive payments without additional new additions to shareholders. The options will be subject to a 1-year cliff vesting plan (active deferral and final incentive) and will be exercisable in the voting shares of the Company for a period of 10 years following the date of grant.
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Last November MiniLuxe announced the reorganization and restructuring of the Company’s SG+A which includes the use of stock options as a major part of the leadership incentive that will have two benefits: reducing cash burn and fully aligning management and shareholders’ interests.
Over the past year, the Company has significantly reduced SG+A as a percentage of revenue and reduced cash burn by over 65 percent from ~$10M to today’s annualized burn rate of ~$3M. This coupled with the growing contribution from the core business (up nearly 4x YTD over the prior year) has created a strong fixed cost ratio and improved operating cash flow.
About MiniLuxe
MiniLuxe is a Delaware corporation based in Boston, Massachusetts. MiniLuxe is a lifestyle brand and talent empowerment platform serving the beauty and personal care industry. The Company specializes in delivering quality nail care and beauty services and offers a range of trusted proprietary products used in the Company’s studio facilities. The Company’s studios are company owned and operated, and the company currently offers franchising opportunities. For more than a decade, MiniLuxe has been raising the bar in the industry with healthy, ultra-clean services, modern aesthetic design, socially responsible labor practices, and better-for-you, cleaner products. MiniLuxe aims to revolutionize the highly fragmented and unregulated nail care industry with its product, standards, and technology platform together empowering top talent and customer experience. For its customers, MiniLuxe offers industry leading personal care services and products that are better for you, as well as nail care and beauty professionals, MiniLuxe wants to be the employer of choice. In addition to creating long-term economic benefits for our stakeholders, the product seeks to positively impact and empower the most diverse and largest hourly workforce through professional development and certification, economic mobility, and company ownership opportunities (eg, equity participation and franchise opportunities) future). Since its inception, MiniLuxe has completed more than 4 million services.
For more information
Christine Mastrangelo
Investor Relations, MiniLuxe Holding Corp.
cmastrangelo@miniluxe.com
https://miniluxe.com
https://miniluxe.com/pages/franchise
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