Protein Polymer Technologies, Inc. Announces Stockholder Rights Plan
SAN DIEGO, Aug. 27, 1997 -- Protein Polymer Technologies, Inc.
(Nasdaq: PPTI), reports today its Board of Directors has adopted a Stockholder
Protection Agreement ("Rights Plan") that distributes Rights to stockholders
of record as of September 10, 1997.
On behalf of the Board of Directors of Protein Polymer Technologies, Inc.,
J. Thomas Parmeter, President and Chief Executive Officer of the Company,
states: "The Company has been concerned that we may become an attractive
takeover target at prices that do not adequately reflect the intrinsic value
of our technology and the market opportunities the technology makes available.
"We have taken this step not because of any pending acquisition bids, but
to provide protection of all stockholders' interests when addressing the
complex issues surrounding abusive takeover tactics. The Rights Plan is
viewed as one of the few avenues available to accomplish this; it is for this
reason that thousands of companies have adopted similar stockholder rights
plans. It is a well accepted approach that helps to ensure all stockholders
are treated fairly and equally, and receive an appropriate price in the event
a hostile acquisition is attempted."
The Rights will trade together with the common stock, and generally become
exercisable ten business days after a person or group acquires, or announces
the intention to acquire 15% or more of the outstanding shares of PPTI common
stock, with certain permitted exceptions. The Rights then generally allow the
holder to acquire additional shares of PPTI capital stock at a discounted
price. The issuance of the Rights is not a taxable event, will not affect the
Company's reported earnings per share, and will not change the manner in which
the Company's common stock is currently traded. |