Montana-based Stillwater Mining (NASDAQ) has adopted a rights agreement under which stockholders will receive a dividend in the form of a preferred stock purchase right.
The rights will be distributed at the rate of one per common share. Each right will allow the holder to buy one one-thousandth of a share of Series A preferred stock at an initial price of US$80.
The agreement is designed to assure that stockholders receive equal treatment in the event of any proposed takeover.
The rights will become exercisable 10 business days after a person or group acquires beneficial ownership of 15% or more of the outstanding common stock of the company.
In financial news, Stillwater reported a net loss of US$722,000 (or 3 cents per share) for the third quarter. This compares with a net income of US$280,000 (or 2 cents per share) for the same period last year.
Revenues dipped slightly to US$10.6 million from US$12.7 million for the third quarter of last year .The loss was due to low production stemming from the continuation of grade problems during the second quarter.
For the nine months of 1995, Stillwater reported a net loss of US$204,000 (1 cents per share) on revenue of US$42.8 million, compared with a net income of US$672,000 (4 cents per share) on US$40.1 million for the same period in 1994.
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