Biopharmaceutical company Dynavax Technologies Corp. (DVAX) announced Tuesday that its Board of Directors has adopted a limited-duration shareholder rights plan or poison pill, effective immediately.
The Dynavax Board adopted the rights plan in response to the recent rapid accumulations of stock by Deep Track Capital, which recently disclosed in a Schedule 13D/A filing its ownership of 13.6% of the Company's outstanding common stock.
The rights plan is intended to protect the investment of Dynavax stockholders during a period in which it believes shares of the Company do not reflect the inherent value of the business or its long-term growth potential.
The rights plan should reduce the likelihood that any person or group gains control of Dynavax through open market accumulation without paying all stockholders an appropriate control premium or without providing the Board sufficient time.
In connection with the adoption of the rights plan, the Board declared a dividend of one preferred share purchase right for each outstanding share of Dynavax's common stock as of the close of business on November 8, 2024, the record date.
Under the rights plan, the rights generally would become exercisable only if a person or group acquires beneficial ownership of 15% or more of Dynavax common shares.
Once the rights become exercisable, each right will entitle its holder to purchase, for $52.00, additional shares of Dynavax common stock having a market value of twice such exercise price.
Dynavax intends to submit the rights plan to a vote of its stockholders at its 2025 Annual Meeting.
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