Like someone would want it?
Aware, Inc. Adopts Stockholder Rights Plan
BEDFORD, Mass.--(BUSINESS WIRE)--Oct. 2, 2001--Aware, Inc. (NASDAQ: AWRE), a worldwide DSL technology leader and innovator, announced today that its Board of Directors has adopted a Stockholder Rights Plan. The Rights Plan is designed to enable all of Aware's stockholders to receive a fair price and fair and equal treatment in the event that an unsolicited attempt is made to acquire control of Aware. The adoption of the Rights Plan is intended as a means to guard against abusive takeover tactics and was not adopted in response to any known effort to acquire control of Aware.
Under the Rights Plan, the rights will be issued to stockholders of record on October 15, 2001. The rights will be exercisable only if a person or group, subject to certain exceptions, buys or announces a tender offer to buy 15 percent or more of Aware's common stock. In that case, all rightsholders, except the buyer, may be entitled to acquire Aware's stock at a discount. The effect will be to discourage acquisitions of more than 15 percent of Aware's common stock without negotiations with the Board.
Until the rights become exercisable, the rights will trade with Aware's common stock and do not represent any significant value to stockholders. The rights will be distributed as a non-taxable dividend and will expire on October 2, 2011, unless redeemed earlier. Aware's Board of Directors may redeem the rights at $.001 per right any time prior to the time a person or group has acquired 15% of Aware's common stock.
A summary of the terms of the Rights Plan will be mailed to all stockholders following the record date. |
