Nightfood CEO and Largest Shareholder Sean Folkson Extends Existing Lock-Up Agreement Additional Twelve Months, Into February 2022
TARRYTOWN, NY, Jan. 21, 2021 (GLOBE NEWSWIRE) -- via NewMediaWire -- Nightfood, Inc. (OTCQB: NGTF), the company pioneering the category of “sleep-friendly” nutrition and snacking, today announced that founder and CEO Sean Folkson has extended his existing lock-up agreement for an additional twelve months. This information was first made public via an 8K filing on Wednesday, January 20, 2021. Folkson has not disposed of any shares in any way since November of 2015. He has increased his position during that time by purchasing 400,000 shares through the exercise of warrants at a $.30 strike price, as well as through recent purchasing of shares in the open market. Folkson’s previous Lock-Up Agreement was set to expire On February 4, 2021. That agreement has now been extended an additional twelve months, through February 4, 2022. In exchange, Folkson was issued warrants for NGTF common stock with a strike price of $.30 and a term of one year. Should Folkson not exercise the warrants on or prior to February 4, 2022, they will expire. Folkson commented, “I look forward to the opportunity to exercise these warrants at their $.30 strike price during the next twelve months to increase my share position while remaining aligned with the best interests of all Nightfood shareholders. We’re on the cusp of significant milestones, and I have no intention of selling a single share until we’ve achieved our goal. That means pioneering and leading this new consumer category so people can snack better and sleep better every night. We believe having a formal Lock Up Agreement in place inspires greater shareholder confidence in our vision for both the short and long-term prospects of the Company, as well it should.” Nightfood’s award-winning sleep-friendly ice cream is currently available in over 800 supermarkets, including divisions of Kroger, Albertsons and H-E-B. More distribution and strategic partnerships are expected to be announced shortly. In addition to the $.30 warrants issued as part of this Lock-Up Agreement, Folkson recently agreed to a new Consulting Agreement and compensation package with the company effective January 1, 2021. The new compensation structure consists of a $6,000 monthly consulting fee as Folkson’s only cash compensation. In addition, the new twelve month consulting agreement contains bonus warrants with strike prices of $.50 and $1.00. Those bonus warrants would only be earned when the Company achieves certain revenue targets (such as the first million-dollar revenue quarter) and other strategic milestones during 2022 which Management believes would increase shareholder value. Folkson’s new consulting agreement went into effect on January 1, 2021, and was made public via an 8-K filing on December 22, 2020. About Nightfood Holdings: Nightfood Holdings, Inc. (OTC: NGTF), owns Nightfood, Inc. and MJ Munchies, Inc. Nightfood has expanded distribution for its ice cream into major divisions of the largest supermarket chains in the United States: Kroger (Harris Teeter), Albertsons Companies (Jewel-Osco and Shaw’s and Star Markets), and H-E-B (Central Market) as well as Lowe’s Foods, Rouses Markets, and other independent retailers. Nightfood won the 2019 Product of the Year award in the ice cream category in a Kantar survey of over 40,000 consumers. Nightfood was also named Best New Ice Cream in the 2019 World Dairy Innovation Awards. Nightfood has been endorsed as the Official Ice Cream of the American Pregnancy Association and is the recommended ice cream for pregnant women. There are approximately 3,000,000 pregnant women in the United States at any given time, and ice cream is the single most-widely reported pregnancy craving. With more calcium, magnesium, zinc, prebiotic fiber, and casein protein, less sugar and a lower glycemic profile than regular ice cream, Nightfood has been identified as a better choice for expectant mothers. Nightfood is not just for pregnant women. Over 80% of Americans snack regularly at night, resulting in an estimated 700M+ nighttime snack occasions weekly, and an annual spend on night snacks of over $50 billion dollars, the majority of it on options that are understood to be both unhealthy, and disruptive to sleep quality. Nightfood was formulated by sleep and nutrition experts with ingredients that research suggests can support nighttime relaxation and better sleep quality. Scientific research indicates unhealthy nighttime cravings are driven by human biology. Willpower is also weakest at night, and stress is another contributing factor. A majority of night snackers report feeling both guilty and out-of-control when it comes to their nighttime snacking. Because unhealthy night snacking is believed to be biologically driven, and not a trend or a fad, management sees significant opportunity in pioneering the category of nighttime-specific snacks for better sleep. MJ Munchies, Inc. was formed in 2018 as a new, wholly owned subsidiary of Nightfood Holdings, Inc. to capitalize on legally compliant opportunities in the CBD and marijuana edibles and related spaces. The Company is seeking licensing opportunities to market such products under the brand name “Half-Baked”, for which they’ve successfully secured trademark rights. Questions can be directed to [email protected] Management also encourages Nightfood shareholders to connect with the Company via these methods: E-mail: By signing up at ir.nightfood.com, investors can receive updates of filings and news releases in their inbox. Telegram: There is now a live, interactive Telegram group which interested parties can join to reach team members and discuss Nightfood. Ask questions, learn more about the company and discuss future prospects. Join the Telegram Group Here: https://t.me/NightfoodHoldings YouTube: The company has established a new YouTube series which will feature weekly videos with team members, insights into latest industry developments, and provide a behind the scenes look at the latest company developments. Click here to subscribe to Nightfood’s YouTube channel. Forward-Looking Statements: This current press release contains "forward-looking statements," as that term is defined in Section 27A of the United States Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Statements in this press release which are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future, including but not limited to, any products sold or cash flow from operations. Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with distribution and difficulties associated with obtaining financing on acceptable terms. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that the beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that such beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in our most recent annual report for our last fiscal year, our quarterly reports, and other periodic reports filed from time-to-time with the Securities and Exchange Commission. Media Contact: Tim [email protected] Investor Contact:Stuart [email protected], x3
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