PLBY Group CEO Ben Kohn and Other Executive Officers to Sell a Portion of Shares from RSU Settlements to Satisfy Tax Obligations

Rhea-AI Summary

PLBY Group announced that CEO Ben Kohn and other executives will sell about 600,000 shares of common stock to cover tax withholding obligations from the settlement of 1.2 million vested RSUs. After these transactions, Kohn will own roughly 2.6 million shares, equivalent to 5.4% of the company’s outstanding stock. This stock sale is in line with the company’s practices for fulfilling withholding tax obligations. The press release also included forward-looking statements regarding market conditions and potential risks to the business.

Positive

• CEO and executives are proactively managing tax obligations through stock sales, which reflects financial responsibility.

Negative

• The sale of shares to cover tax obligations might raise concerns about insider selling and its impact on stock performance.
• Potential risks outlined in the press release include issues with maintaining Nasdaq listing and market conditions affecting business.

LOS ANGELES, Dec. 14, 2022 (GLOBE NEWSWIRE) -- PLBY Group, Inc. (NASDAQ: PLBY) (the “Company”) announced today that Chief Executive Officer Ben Kohn and the other Section 16 officers of the Company will sell in the aggregate approximately 0.6 million shares of common stock, and the sale proceeds will be applied to cover the executives’ tax withholding obligations in connection with the settlement of approximately 1.2 million vested restricted stock units ("RSUs") previously granted to the executives. Pursuant to the Company's current practices, withholding tax obligations arising from RSU settlements are being satisfied by the sale of shares by the recipients solely to cover the taxes related to such transactions.

Following the RSU settlement and his sale to cover tax obligations, Mr. Kohn will beneficially own up to approximately 2.6 million shares, representing approximately 5.4% of the Company’s common stock outstanding. Beneficial ownership is determined according to the rules of the Securities and Exchange Commission, which generally includes options that are currently exercisable or exercisable within 60 days. Company stock issuable upon exercise of options currently exercisable or exercisable within 60 days are deemed outstanding solely for purposes of calculating the percentage of total voting power of the beneficial owner, but the actual ownership percentage would be lower in the event the holder does not exercise options that are exercisable.

About PLBY Group, Inc.
PLBY Group, Inc. is a global pleasure and leisure company connecting consumers with products, content, and experiences that help them lead more fulfilling lives. PLBY Group’s flagship consumer brand, Playboy, is one of the most recognizable brands in the world, driving billions of dollars annually in global consumer spending with products and content available in approximately 180 countries. PLBY Group’s mission — to create a culture where all people can pursue pleasure — builds upon almost seven decades of creating groundbreaking media and hospitality experiences and fighting for cultural progress rooted in the core values of equality, freedom of expression and the idea that pleasure is a fundamental human right.

Forward-Looking Statements
This press release includes “forward-looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995, including without limitation, statements regarding the intentions of Mr. Kohn and other executive officers to sell approximately 0.6 million shares of our common stock in order to fund the tax obligations resulting from the settlement of RSUs; expectations concerning the timing of such events or the price that Mr. Kohn or the other executive officers might receive for such shares of common stock; the number of shares that may need to be sold in order to fund the tax obligations; and any statements or assumptions underlying any of the foregoing. The Company’s actual results may differ from their expectations, estimates, and projections and, consequently, you should not rely on these forward-looking statements as predictions of future events. Words such as “expect,” “estimate,” “project,” “budget,” “forecast,” “anticipate,” “intend,” “plan,” “may,” “will,” “could,” “should,” “believes,” “predicts,” “potential,” “continue,” and similar expressions (or the negative versions of such words or expressions) are intended to identify such forward-looking statements.

These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from those discussed in the forward-looking statements. Factors that may cause such differences include: (1) prevailing market conditions; (2) the impact of the COVID-19 pandemic on the Company’s business and acquisitions; (3) the inability to maintain the listing of the Company’s shares of common stock on Nasdaq; (4) the risk that the Company’s business combination, acquisitions or any proposed transactions disrupt the Company’s current plans and/or operations, including the risk that the Company does not complete any such proposed transactions or achieve the expected benefits from them; (5) the ability to recognize the anticipated benefits of the business combination, acquisitions, commercial collaborations, commercialization of digital assets and proposed transactions, which may be affected by, among other things, competition, the ability of the Company to grow and manage growth profitably, and retain its key employees; (6) costs related to being a public company, acquisitions, commercial collaborations and proposed transactions; (7) changes in applicable laws or regulations; (8) the possibility that the Company may be adversely affected by global hostilities, supply chain disruptions, inflation, interest rates, foreign currency exchange rates or other economic, business, and/or competitive factors; (9) risks relating to the uncertainty of the projected financial information of the Company, including changes in our estimates of the fair value of certain of our intangible assets; (10) risks related to the organic and inorganic growth of the Company’s business, and the timing of expected business milestones; and (11) other risks and uncertainties indicated from time to time in the Company’s annual report on Form 10-K, including those under “Risk Factors” therein, and in the Company’s other filings with the Securities and Exchange Commission. The Company cautions that the foregoing list of factors is not exclusive, and readers should not place undue reliance upon any forward-looking statements, which speak only as of the date which they were made. The Company does not undertake any obligation to update or revise any forward-looking statements to reflect any change in its expectations or any change in events, conditions, or circumstances on which any such statement is based.

Contact
Investors: investors@plbygroup.com
Media: press@plbygroup.com

FAQ

What is the reason for PLBY Group executives selling 600,000 shares?

Executives are selling shares to cover tax withholding obligations related to the settlement of 1.2 million vested RSUs.

How many shares will CEO Ben Kohn own after the sale?

After the sale, CEO Ben Kohn will beneficially own approximately 2.6 million shares, representing about 5.4% of the company’s outstanding stock.

What risks did PLBY Group mention in their press release?

The company mentioned risks regarding market conditions, maintaining Nasdaq listing, and potential disruptions from various external factors.

When was the PLBY Group press release issued?

The press release was issued on December 14, 2022.

What are RSUs in the context of PLBY Group's press release?

RSUs, or restricted stock units, are a form of stock compensation granted to executives, which become vested after certain conditions are met.