The board of MiMedx Group (NASDAQ:MDXG) has unanimously authorized a limited duration shareholder rights plan that will go into effect at the open tomorrow, November 8, when its common shares will cease trading on Nasdaq.
The poison pill provision, aimed at preventing a hostile takeover, will be triggered if an investor or group of investors acquires at least 10% of the company's common stock in a transaction not approved by the board. If so, right holders (exclusive of the aforementioned investors) will be eligible to purchase common shares at a 50% discount after paying an exercise price.
Shares are down 33% premarket on average volume.
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