Selectica declares dividend distribution of preferred stock purchase rights

By siliconindia   |   Thursday, 06 February 2003, 20:30 IST   |    1 Comments
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SAN JOSE: Selectica Inc. (Nasdaq:SLTC) on Thursday declared a dividend distribution of one Preferred Share Purchase 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 $18.00, in the event the Rights become exercisable," the company announced in an official release. The rights will become exercisable if a person or group becomes the owner of 15% or more of the outstanding common stock of the company or announces a tender offer for 15% or more of the outstanding Common Stock. The Board of Directors will be entitled to redeem the Rights at $.0001 per Right at any time before either of these events occur. "The Rights are not being distributed in response to any specific effort to acquire the Company," the company clarified. "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 purchase, at the Right's exercise price, a number of shares of Common Stock or equivalent securities having a market value at that time of twice the Right's exercise price. Rights held by the triggering person will become void and will not be exercisable to purchase shares at the reduced purchase