Business
Innovative Solutions and Support, Inc. Adopts Stockholders Rights Plan
EXTON, Pa.--(BUSINESS WIRE)-- Innovative Solutions and Support, Inc. (“IS&S” or the “Company”) (NASDAQ: ISSC) today announced that its Board of Directors
About this update from Innovative Solutions And Support, Inc.
[{"type":"text","content":" EXTON, Pa.--(BUSINESS WIRE)--\nInnovative Solutions and Support, Inc. (“IS&S” or the “Company”) (NASDAQ: ISSC) today announced that its Board of Directors (the “Board”) has adopted a stockholder rights plan and declared a dividend distribution of one preferred share purchase right on each outstanding share of the Company’s common stock, par value $0.001.\n\nThe stockholder rights plan is intended to promote the fair and equal treatment of all IS&S stockholders and ensure that no person or group can gain control of IS&S through open market accumulation or other tactics without paying a control premium and potentially disadvantaging the interests of all stockholders. The rights plan helps to ensure that the Board has sufficient time to exercise its fiduciary duties to make informed judgments about the actions of third parties that may not be in the best interests of IS&S and its stockholders. The rights plan applies to all current and future stockholders, and is not intended to deter offers that are fair and otherwise in the best interest of the Company’s stockholders. The rights plan has not been adopted in response to any specific takeover bid or other proposal to acquire control of the Company.\n\nShahram Askarpour, Chief Executive Officer and member of the Board said: “We are adopting the rights agreement to protect the interests of all of our stockholders to realize the long-term value of their investment in IS&S.”\n\nThe rights will be exercisable if any person or group becomes the beneficial owner of 15% or more (which threshold may differ under certain circumstances) of the Company’s outstanding common stock. In the event that the rights become exercisable due to the triggering ownership threshold being crossed, each right will entitle its holder to purchase a number of shares of the Company’s common stock (or in certain circumstances, shares of preferred stock or other similar securities of the Company) at a 50% discount to the market value of the Company’s common stock. Rights held by the triggering person or group will become void and will not be exercisable.\n\nThe rights are scheduled to expire 12 months after the issuance of the rights plan and do not prevent any person or group from engaging in a proxy contest. The stockholder rights plan contains an exception for offers that meet certain requirements, such as an o...