Lemonade Announces Proposed Public Offering of Common Stock

Lemonade, Inc. (“Lemonade”) (NYSE:LMND), the insurance company powered by artificial intelligence and behavioral economics, today announced that it intends to offer 3,000,000 shares of its common stock for sale in an underwritten public offering (the “Primary Offering”). Certain selling stockholders of Lemonade also intend to offer 1,524,314 shares of Lemonade’s common stock for sale in the offering (the “Secondary Offering” and together with the Primary Offering, the “Offering”). Lemonade also intends to grant the underwriters 30-day options to purchase up to an additional 678,647 shares of Lemonade’s common stock.

Lemonade intends to use its net proceeds from the Primary Offering for general corporate purposes. Lemonade will not receive any proceeds from the sale of shares by the selling stockholders in the Secondary Offering.

Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC, Allen & Company LLC and Barclays Capital Inc. are serving as joint active bookrunners.

A registration statement relating to the Offering has been filed with the Securities and Exchange Commission (the “SEC”) but has not yet become effective (the “Registration Statement”). The Offering will be made only by means of a prospectus. These securities may not be sold nor may offers to buy be accepted prior to the time when the Registration Statement becomes effective. Copies of the preliminary prospectus relating to the Offering may be obtained from Goldman Sachs & Co. LLC, Attn: Prospectus Department, 200 West Street, New York NY 10282 (Tel: 1-866-471-2526, or email to [email protected]), from Morgan Stanley & Co. LLC, Attn: Prospectus Department, 180 Varick Street, 2nd Floor, New York, NY 10014, from Allen & Company LLC, Attn: Prospectus Department, 711 Fifth Avenue, New York, NY 10022 (Tel: 212-339-2220 or email to: [email protected]), or from Barclays Capital Inc., c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717 (Tel: 1-888-603-5847 or email to: [email protected]).

This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

Forward-Looking Statements:

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including statements identified by terms such as “may,” “will,” “should,” “expect,” “plan,” “anticipate,” “could,” “intend,” “target,” “project,” “contemplate,” “believe,” “estimate,” “predict,” “potential”, or “continue” or the negative of these terms or other similar expressions. These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to, the following: our future results of operations and financial position; our ability to attract, retain, and expand our customer base; our ability to operate under and maintain our business model; our ability to maintain and enhance our brand and reputation; our ability to effectively manage the growth of our business; the effects of seasonal trends on our results of operation; our ability to attain greater value from each customer; our ability to compete effectively in our industry; future performance of the markets in which we operate; our ability to maintain reinsurance contracts; our ability to utilize our proprietary artificial intelligence algorithms; our ability to underwrite risks accurately and charge profitable rates; our ability to protect our intellectual property; our domestic and international expansion strategy and ability to expand domestically and internationally; our ability to expand our product offerings or improve existing ones; our ability to attract and retain personnel; potential harm caused by misappropriation of our data and compromises in cybersecurity; potential harm caused by changes in internet search engines’ methodologies; our ability to raise additional capital; our lack of operating history and ability to attain profitability; fluctuations in our results of operation and operating metrics; our ability to receive, process, store, use and share data, and compliance with laws and regulations related to data privacy and data security; our ability to stay in compliance with laws and regulation that currently apply, or become applicable, to our business both in the United States and internationally; our inability to predict the lasting impacts of COVID-19 to our business in particular, and the global economy generally; and our expected uses of the net proceeds from the Primary Offering. These and other important factors discussed under the caption “Risk Factors” in Lemonade’s filings with the SEC, including the Registration Statement, could cause actual results to differ materially from those indicated by the forward-looking statements made in this press release. Any such forward-looking statements represent management’s beliefs as of the date of this press release. While we may elect to update such forward-looking statements at some point in the future, we disclaim any obligation to do so, even if subsequent events cause our views to change.

About Lemonade:

Lemonade (NYSE:LMND) offers renters, homeowners, and pet health insurance in the United States, contents and liability insurance in Germany and the Netherlands, and renters insurance in France, through its full-stack insurance carriers. Powered by artificial intelligence and behavioral economics, Lemonade set out to replace brokers and bureaucracy with bots and machine learning, aiming for zero paperwork and instant everything. A Certified B-Corp, Lemonade gives unused premiums to nonprofits selected by its community, during its annual Giveback. Lemonade is currently available for most of the United States, Germany, the Netherlands and France and continues to expand globally.

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