LONDON (Alliance News) - ProPhotonix Ltd Friday said it has adopted a stockholder rights agreement and declared a dividend distribution of one common stock purchase right on each outstanding shares of its common stock.
The company said the adoption of the rights plan is in the best interests of its stockholders and designed to ensure that all stockholders realise the long-term value of their investment in the company.
ProPhotonix also said the rights are in place to ensure stockholders receive fair and equal treatment in the event of a potential takeover and enhances the board's ability to negotiate with a prospective buyers.
Each right will initially entitle stockholders to buy one share of common stock of the company, at an exercise price of USD0.30, in the event the rights become exercisable, subject to adjustment and the terms of the rights plan.
In general, the rights will become exercisable if a person or group of affiliated or associated parties becomes the beneficial owner of 20% or more of the outstanding common stock of the company or announces a tender offer for 20% or more of the outstanding common stock of the company.
The stock was quoted up 11.1% at 3.75 pence Friday afternoon.
By Anthony Tshibangu; anthonytshibangu@alliancenews.com; @AnthonyAllNews
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