NEW YORK (TheStreet) -- Atossa Genetics (ATOS) stock surged on Thursday after the Board of Directors approved a poison pill provision. The adoption of the stockholder rights agreement is designed to deter "coercive, unfair, or inadequate takeovers and other abusive tactics," the company said in a statement.
The developer of breast health solutions said the agreement would not prevent takeovers at a full and fair price, but would encourage any potential acquirers to first negotiate with the Board.
Under the terms of the agreement, the rights agent will distribute to stockholders a dividend distribution of one preferred stock purchase right for each share of common stock held at the close of business May 26. Rights will be exercisable if a person becomes an "acquiring person" by acquiring ownership of 15% or more of common stock or if a person commences a tender which would result in that person becoming an "acquiring person."Rights will expire after a decade, unless redeemed or exchanged. By early afternoon, shares of the nano-cap had soared 75.5% to $2.18. Trading volume of 2.8 million shares was more than 18 times its three-month daily average. Must Read: Warren Buffett's 25 Favorite Stocks STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV