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

Rhea-AI Summary

European Wax Center (NASDAQ: EWCZ) announced Board approval for equity grants to one new employee effective March 31, 2025. The grants include:

• 84,000 restricted stock units (RSUs) of Class A common stock
• 130,000 stock options at $3.95 exercise price
• 95,000 stock options at $9.00 exercise price
• 95,000 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 March 31, 2029. These grants were made under the company's 2025 Inducement Plan, specifically designed for new hires as per Nasdaq Rule 5635(c)(4).

Positive

• Structured equity compensation plan to attract and retain new talent
• Multiple-price option structure provides incentive for stock price growth

Negative

• Potential future dilution from 404,000 new shares (84,000 RSUs + 320,000 options)
• Current stock price ($3.95) significantly below higher-priced option tranches ($9.00 and $12.00)

News Market Reaction

+6.33%

1 alert

+6.33% News Effect

On the day this news was published, EWCZ gained 6.33%, reflecting a notable positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

PLANO, Texas, March 31, 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 March 31, 2025, the Company’s Board of Directors approved grants of (i) restricted stock units covering 84,000 shares of the Company’s Class A common stock (the “RSUs”), (ii) non-qualified stock option awards to purchase 130,000 shares of the Company’s Class A common stock with an exercise price of $3.95, which is equal to the closing price of the Company’s Class A common stock on the Nasdaq Stock Market on March 31, 2025, (iii) non-qualified stock option awards to purchase 95,000 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 95,000 shares of the Company’s Class A common stock with an exercise price of $12.00 ((ii), (iii) and (iv) collectively, the “Options”) to one new employee.

The RSUs and Options were granted pursuant to the Company’s 2025 Inducement Plan. The RSUs will vest in equal installments on each of the first four anniversaries of March 31, 2025, and the Options will vest in full on the fourth anniversary of March 31, 2025, in each case subject to the individual’s continued employment with the Company on each such date. The RSUs and 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 RSUs and Options were granted as such inducement material to the individual 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 did European Wax Center (EWCZ) grant to its new employee in March 2025?

EWCZ granted 84,000 RSUs and 320,000 total stock options at various exercise prices ($3.95, $9.00, and $12.00) to one new employee.

What is the vesting schedule for EWCZ's March 2025 equity grants?

The RSUs vest in equal installments over 4 years, while all stock options vest fully on March 31, 2029.

What was the exercise price of EWCZ's stock when the options were granted on March 31, 2025?

The market price of EWCZ stock was $3.95 on March 31, 2025, as reflected in the first option grant's exercise price.

Why did European Wax Center issue these equity grants under the 2025 Inducement Plan?

The grants were made under the Inducement Plan as required by Nasdaq Rule 5635(c)(4) for new employees who weren't previously with the company.