ITASCA, Ill. — Midas Inc.’s board of directors has amended the company’s existing rights agreement to allow certain long-term shareholders to increase their ownership of the company.
The rights agreement, adopted on Dec. 7, 2007, effectively restricts a shareholder from acquiring 20 percent or more of the outstanding shares.
The newly adopted amendment allows an institutional investor that has held 5 percent or more of Midas’ common shares continuously throughout the past three years to acquire additional shares without becoming an “acquiring person,” so long as it does not own 24.5 percent or more of the company’s outstanding common shares.
The rights will expire on Dec. 31, 2017, unless previously redeemed, exercised or exchanged.
Additional information is available in the Form 8-K, which was filed yesterday with the Securities and Exchange Commission.