HF Foods Approves Limited Duration Stockholders Rights Plan
(RTTNews) - HF Foods Group Inc. (HFFG), a distributor of food products to Asian restaurants, announced that its Board of Directors approved a limited duration stockholders rights plan and declared a dividend distribution of one right for each outstanding share of common stock to
(RTTNews) - HF Foods Group Inc. (HFFG), a distributor of food products to Asian restaurants, announced that its Board of Directors approved a limited duration stockholders rights plan and declared a dividend distribution of one right for each outstanding share of common stock to stockholders of record as of the close of business on June 22.
The Rights Plan was adopted in response to the news of undisclosed stock accumulation and group strategies to take control of HF Foodsactions, thereby depriving stockholders the chance to reap the benefits of their investment.
The company adopts the said plan to protect its own interests, ensuring that no entity, person or group would take control of HF Foods through open-market accumulation or group formation without paying all stockholders a full control premium.
The rights plan also offers protection of stockholders' liquidity throughout any process. It also gives the company enough time to make decisions that would serve its own interests and those of the stockholders.
The plan does not forbid the company from getting an acquisition proposal, as long as it benefits the firm and serves its interests.
The Rights Plan has a 364-day term, expiring on June 10, 2027.
On the Nasdaq, the shares closed Thursday's regular trading 1.57 percent lower at $1.88.
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