Company: UHG
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0001830188-25-000079
Chunk: 17

Company: United Homes Group, Inc.
Filing Date: 2025-11-07
Form: 10-Q
Item: Part II, Item 1A
Chunk 17
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 continue, which may adversely affect UHG’s business, and investors in UHG’s Class A common stock may experience substantial losses.

On May 19, 2025, UHG announced that the Board initiated a process to explore strategic alternatives to maximize shareholder value. On October 20, 2025, following the evaluation of a full range of strategic alternatives, UHG announced that the special committee of independent directors constituted for such purpose had concluded its review and determined that, in light of current macroeconomic conditions, continuing to execute on UHG’s strategic plan as an independent, public company is in the best interests of UHG and its stockholders at this time. At the same time, UHG also announced that James P. Clements had resigned from the board and all committees thereof, effective immediately, and that Robert Dozier, Jason Enoch, Alan Levine, Nikki Haley, and James Pirrello notified UHG of their intent to resign from the Board and all committees thereof no later than November 14, 2025. Following these announcements, the trading price of UHG’s Class A common stock has been and may continue to be volatile. UHG’s operating results, from time to time, may be below the expectations of public market analysts and investors, which could have a material adverse effect on the market price of UHG’s Class A common stock. When the market price of a stock has been volatile, holders of that stock will sometimes file securities class action litigation against the company that issued the stock. If any shareholders were to file a lawsuit, UHG could incur substantial costs defending the lawsuit, which could also divert the time and attention of management.

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If UHG is unable to timely identify and recruit additional board members, UHG’s Class A Common Stock may be subject to delisting.

Following UHG’s October 20, 2025 announcement regarding the resignation or planned resignation of substantially all of the members of the board of directors, UHG’s Executive Chairman and continuing member of the Board is working to identify replacement directors with the requisite qualifications in order to maintain compliance with the requirements under Nasdaq Listing Rule 5605 (the “Corporate Governance Requirements”). In light of UHG’s status with respect to appointment of replacement directors, directors Robert Dozier Jr., Jason Enoch, and Alan Levine informed UHG of their willingness to remain on the Board and applicable committees beyond November 14, 2025, to ensure an orderly transition as director candidates are identified and recruited in order to maintain compliance with