Vera Bradley Inc. (VRA) has announced that its Board of Directors has unanimously approved a shareholder rights plan designed to protect shareholder interests and enhance value for all shareholders.
This strategic plan is intended to ensure that all shareholders have the opportunity to benefit from the company's long-term value, while preventing any single investor or group from acquiring control through aggressive stock purchases without Board consent and without offering a fair premium to all shareholders.
Under the terms of the plan, VRA will issue one right for each share of its common stock. These rights become exercisable if any individual or group acquires 15% or more of the company's stock without the Board's approval, or if a current stakeholder increases their ownership beyond this specified threshold. Should the plan be triggered, it grants existing shareholders the option to purchase additional shares at a price equivalent to twice the exercise price, allowing the Board sufficient time to evaluate and protect the interests of the company and its shareholders.
As of Friday's close, VRA's stock was priced at $5.18, marking an increase of $0.04 or 0.78%. During after-hours trading, the stock experienced a further gain of $0.37 or 7.14%.