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.