Stockholder Rights Plan
As noted above, on October 22, 2013, the Company's Board adopted a stockholder rights plan (the "Rights Plan") and declared a dividend of one right on each outstanding share of InspireMD's common stock.
The Rights Plan is designed to assure that all of InspireMD's stockholders receive fair and equal treatment in the event of any proposed takeover of the company and to guard against tactics to gain control of InspireMD without paying all stockholders a premium for that control. InspireMD's Board deemed it appropriate and prudent to adopt the Rights Plan at this time.
The Rights Plan is intended to enable all InspireMD stockholders to realize the long-term value of their investment in the company. It will not prevent a takeover, but should encourage anyone seeking to acquire the company to negotiate with the Board.
Pursuant to the Rights Plan, InspireMD is issuing one preferred share purchase right for each outstanding share of common stock at the close of business on November 15, 2013. Initially, the rights will not be exercisable and will trade with the company's shares of common stock.
Under the Rights Plan, the rights will generally become exercisable only if a person or group acquires beneficial ownership of 15% or more of the Company's common stock in a transaction not approved by InspireMD's Board. In that situation, each holder of a right (other than the acq
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