LINDBLAD EXPEDITIONS HOLDINGS, INC.

LINDBLAD EXPEDITIONS HOLDINGS, INC. Material Event Summary: Lindblad Strengthens Stake in Natural Habitat

Event Description: Lindblad Boosts Ownership in Natural Habitat Lindblad Expeditions Holdings, Inc. (referred to as "Lindblad" or the "Company") has significantly increased its ownership in Natural Habitat, Inc. ("Nat Hab"), a leading adventure travel company. Lindblad acquired an additional 5% of Nat Hab from its founder, Ben Bressler. This purchase raises Lindblad's total stake in Nat Hab to 95% and involved a cash payment of $16,586,787.

Event Date/Timeline: A Planned Acquisition The transaction closed on March 3, 2024. This acquisition stemmed from a long-standing agreement established when Lindblad first acquired a majority stake in Natural Habitat in 2016. Ben Bressler, Nat Hab's founder, exercised a pre-arranged "put right" to sell these shares. The $16,586,787 purchase price was determined by a pre-established valuation method outlined in the original agreement. A "put/call arrangement" for Bressler's remaining 5% stake is still in place, allowing for potential future acquisition by Lindblad or sale by Bressler.

Impact Assessment: Who is Affected? This transaction has several implications for various stakeholders:

• Lindblad Expeditions: Lindblad gains greater control and a larger share of Nat Hab's financial results (profits or losses). This enhances strategic alignment and integration with a key subsidiary, reinforcing Lindblad's strategy in the high-growth experiential travel market. However, it also increases Lindblad's exposure to Nat Hab's specific operational risks.
• Natural Habitat, Inc.: Operations are expected to remain stable, as Ben Bressler continues as CEO. Lindblad's increased ownership signals ongoing confidence in Nat Hab's business model.
• Employees of Natural Habitat: No immediate direct changes are anticipated, given stable leadership.
• Customers (travelers): No immediate changes to travel offerings or booking options from either Lindblad or Natural Habitat.
• Ben Bressler (Nat Hab Founder & CEO): Bressler successfully monetized a portion of his stake while retaining 5% ownership and his leadership role, maintaining a vested interest in Nat Hab's ongoing success.

Financial Impact: What Does it Mean for the Books?

• Cash Outflow: Lindblad paid $16,586,787 in cash for the additional 5% stake.
• Liquidity: This payment reduces Lindblad's cash reserves and overall liquidity. It's important for investors to consider this against the Company's current cash and equivalents.
• Consolidated Earnings: With 95% ownership, Lindblad will consolidate a larger portion of Nat Hab's financial results. This could potentially boost consolidated earnings per share if Nat Hab continues its strong performance.
• Future Financial Commitments: The existing put/call arrangement for the remaining 5% stake represents a potential future cash outflow for Lindblad if the Company chooses to acquire or is required to purchase those shares.

Key Takeaways for Investors: What You Need to Know

• Cash Flow Impact: The $16.6 million cash payment is a one-time expenditure that reduces current cash reserves, affecting funds available for other uses like debt reduction or new investments.
• Increased Exposure to Nat Hab's Performance: Lindblad investors now have greater exposure to Natural Habitat's financial performance. Historically, Nat Hab has been a strong contributor to Lindblad's overall revenue and profitability.
• Anticipated Future Transactions: Lindblad may eventually acquire the remaining 5% of Natural Habitat, which would represent a planned future cash outflow.
• Strategic Reinforcement: This planned transaction reinforces Lindblad's long-term strategy in the high-end expedition travel market and its commitment to integrating valuable subsidiaries.
• Investment Strategy Consideration: Investors should assess how this capital allocation and increased exposure to the adventure travel segment align with their overall investment thesis for Lindblad. They should weigh the cash outflow against the potential for increased future earnings from a valuable subsidiary.