LOS GATOS, Calif., Oct. 8 /PRNewswire-FirstCall/ -- NOVT Corporation (Pink Sheets: NOVT.PK) ("the Company") today announced that its Board of Directors voted to terminate the Company's current shareholder rights plan. The Board of Directors determined the plan was no longer necessary due to the Company's reincorporation in Delaware and adoption of a new charter, which contains a provision protecting the Company's Net Operating Loss carryforwards. This new charter provision restricts the transfer of stock to a transferee (or a group in which the transferee is a member) if the transfer would either (i) increase the transferee's beneficial ownership of the Company to 4.75 percent or above or (ii) increase the transferee's beneficial ownership of the Company from 4.75 percent or above to a greater ownership interest percentage.
The rights plan will be terminated by changing its 2009 expiration date to October 29, 2007, while the Board retains the right to adopt a new plan at a future date in the event of changed circumstances.
|SOURCE NOVT Corporation|
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