Business
RCM Technologies Adopts Stockholder Rights Plan
PENNSAUKEN, N.J., May 22, 2020 (GLOBE NEWSWIRE) -- RCM Technologies, Inc. (“RCM” or “the Company”) (NasdaqGM: RCMT), a premier provider of business and
About this update from Rcm Technologies, Inc.
[{"type":"text","content":"PENNSAUKEN, N.J., May 22, 2020 (GLOBE NEWSWIRE) -- RCM Technologies, Inc. (“RCM” or “the Company”) (NasdaqGM: RCMT), a premier provider of business and technology solutions designed to enhance and maximize the operational performance of its customers through the adaptation and deployment of advanced engineering, specialty health care and information technology services, today announced that its Board of Directors has approved the adoption of a limited duration stockholder rights plan (the “Rights Plan”) and declared a dividend distribution of one right (“Right”) for each outstanding share of common stock.\n The Rights Plan is intended to protect RCM and its stockholders from efforts to obtain control of RCM that the Board of Directors determines are not in the best interests of RCM and its stockholders, and to enable all stockholders to realize the long-term value of their investment in RCM. The Rights Plan is not intended to interfere with any merger, tender or exchange offer or other business combination approved by the Board of Directors. Nor does the Rights Plan prevent the RCM Board from considering any offer that it considers to be in the best interest of its stockholders. The Rights Plan adopted by RCM is similar to rights plans adopted by many other publicly-traded companies, and is intended to promote the fair and equal treatment of all RCM stockholders and ensure that no person or group can gain control of RCM through open market accumulation or other tactics potentially disadvantaging the interests of all stockholders without paying an appropriate control premium to deliver sufficient value for all RCM stockholders. The Board of Directors has taken note in particular that, in light of the COVID-19 pandemic, recent market events, and other factors, the closing price of the Company’s common stock has dropped by 59% year-to-date 2020 and by 69% as compared to its 52-week high. The Board of Directors believes RCM’s stock is significantly undervalued as the result of the current market environment. Pursuant to the Rights Plan, RCM is issuing one Right for each current share of common stock outstanding at the close of business on June 2, 2020. Initially, the Rights will not be exercisable, will be represented by RCM common stock certificates or book entry notations, and will trade with the shares of RCM’s common stock. If t...