Boston, MA 05/22/2014 (wallstreetpr) – Atossa Genetics Inc. (NASDAQ:ATOS) shares are up in the market by a high of 79.54% after the approval of a stockholder rights agreement by the company’s board of directors. The rights agreement was developed to deter any forms of coercive, unfair or inadequate takeovers that might come calling in the future. There was a huge concern that abusive tactics if used in a bid of gaining control of the company could result in shareholders not gaining the fair value of their share prices.
Terms of the Rights Agreement
The right’s agreement will not be used to deter any future takeovers but will be used to ensure the realization of full and fair price while bidders negotiate with Atossa Genetics Inc. (NASDAQ:ATOS)’s board of directors. The terms of the agreement also covers right’s agents distributing to the company’s stockholders, nontaxable dividends of one stock for each share of Atossa held. The expiry date has been set as May 26, 2014.
The rights will become applicable if one acquires 15% or more of the company’s stock. If a person owned 15% or more stock before the signing of the right’s agreement, then he will be eligible for the rights, only if, he buys an additional 2% shares. A person will also enjoy the rights if he or she commences a tender offer that becomes consummated.
Rights to Acquiring Person
Once one becomes an acquiring person, he or she will be entitled to purchase a number of shares with a market value that is twice the exercise value of the right. The initial exercise price per right is $15. Atossa rights agreement follows the completion of the company’s public offering in the first quarter that raised a total of $13 million in net proceeds.
During the quarter, Atossa Genetics Inc. (NASDAQ:ATOS) raised a total of $182,670 in net revenue consisting of $169,230 in diagnostic service revenue. Gross profit for the quarter dropped to 24, 124 compared to a high of $116, 206 for the first three months of 2013. Increase in net loss for the quarter to $2,411, 531 was attributed to an increase in general and administrative expenses.