ROCKVILLE, Md., Sept. 25 /PRNewswire-FirstCall/ -- Vanda Pharmaceuticals Inc. (Nasdaq: VNDA), a biopharmaceutical company focused on the development and commercialization of clinical-stage product candidates for central nervous system disorders, announced today that the Board of Directors of Vanda Pharmaceuticals Inc. (the "Company") declared a dividend distribution of one Preferred Share Purchase Right (a "Right") on each outstanding share of its Common Stock. Each Right will initially entitle stockholders to buy one one-thousandth of a share of newly created Series A Junior Participating Preferred Stock of the Company, at an initial exercise price of $6.00, in the event the Rights become exercisable. In general, the Rights will become exercisable if a person or group becomes the beneficial owner of 15% or more of the outstanding voting power of the Common Stock of the Company or announces a tender offer for 15% or more of the outstanding voting power of the Common Stock. The Board of Directors will in general be entitled to redeem the Rights at one cent per Right at any time before the triggering ownership threshold is crossed.
The Rights are not being distributed in response to any specific effort to acquire the Company. The Rights are designed to assure that all stockholders of the Company receive fair and equal treatment in the event of any proposed takeover of the Company, to guard against two-tier or partial tender offers, open market accumulations and other tactics designed to gain control of the Company without paying all stockholders a fair price, and to enhance the Board's ability to negotiate with a prospective acquiror.
In the event that the Rights become exercisable, each Right will
entitle its holder to purcha
|SOURCE Vanda Pharmaceuticals Inc.|
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