Mission Produce Adopts Limited Duration Stockholder Rights Plan

Rhea-AI Summary

Mission Produce (Nasdaq: AVO) adopted a limited duration stockholder rights plan effective January 21, 2026, expiring January 21, 2027 (company may extend). The plan was adopted after an accumulation of common stock by strategic investor Globalharvest Holdings Venture Ltd. and is intended to promote fair treatment of stockholders and reduce the likelihood of control by open-market accumulations without a control premium.

One right will be distributed per common share held of record on February 4, 2026. Under certain circumstances rights permit purchase of 1/100th of a Series A Junior Participating Preferred share at an exercise price of $63.00; rights trigger if a person or group acquires 15% (includes synthetic ownership).

Positive

• Board adopted a one-year Rights Plan effective Jan 21, 2026
• Rights trigger at 15% to discourage open-market control accumulations
• Rights distribution payable to record holders on Feb 4, 2026
• Board may redeem rights at $0.01, preserving flexibility

Negative

• Exercise price of $63.00 could lead to share issuance if exercised
• Rights allow creation of Series A preferred shares, potentially diluting common stock

News Market Reaction

+2.59% 1.6x vol

12 alerts

+2.59% News Effect

+3.2% Peak in 1 hr 32 min

+$25M Valuation Impact

$1.01B Market Cap

1.6x Rel. Volume

On the day this news was published, AVO gained 2.59%, reflecting a moderate positive market reaction. Argus tracked a peak move of +3.2% during that session. Our momentum scanner triggered 12 alerts that day, indicating notable trading interest and price volatility. This price movement added approximately $25M to the company's valuation, bringing the market cap to $1.01B at that time. Trading volume was above average at 1.6x the daily average, suggesting increased trading activity.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Rights plan duration: 1 year Record date: February 4, 2026 Exercise price: $63.00 +5 more

8 metrics

Rights plan duration 1 year Plan effective Jan 21, 2026, expiring Jan 21, 2027

Record date February 4, 2026 Stockholders of record receive one right per common share

Exercise price $63.00 Price to buy one one-hundredth share of Series A preferred stock

Redemption price $0.01 per right Board may redeem rights before any holder reaches 15%

Trigger threshold 15% Ownership level (including synthetic) that generally defines an acquiring person

Exchange threshold 50% Upper ownership limit before Board’s right-exchange alternative lapses

Purchase multiple 2x exercise price Rights let holders buy shares with market value twice exercise price

Exchange ratio 1 share per right Possible exchange of rights (excluding acquiring person) into common shares

Market Reality Check

Price: $13.46 Vol: Volume 1,791,370 is 2.08x...

high vol

$13.46 Last Close

Volume Volume 1,791,370 is 2.08x the 20-day average of 862,318, signaling elevated trading interest before this announcement. high

Technical Shares at $13.12 are trading above the 200-day MA of $11.78 and sit 7.08% below the $14.12 52-week high.

Peers on Argus

AVO gained 4.54% with elevated volume, while key peers showed modest mixed moves...

AVO gained 4.54% with elevated volume, while key peers showed modest mixed moves: CVGW +1.7%, ANDE +2.72%, UNFI +0.94%, SPTN 0%, WILC -0.24%. No peers appeared in the momentum scanner, pointing to a stock-specific reaction around AVO’s rights plan.

Historical Context

5 past events · Latest: Jan 14 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Jan 14	Calavo acquisition deal	Positive	+1.1%	Cash-and-stock agreement to acquire Calavo Growers, expanding avocado platform.
Dec 18	FY25 earnings	Positive	-0.1%	Record FY25 revenue and EBITDA growth with strong volume and cash generation.
Dec 18	Leadership succession	Neutral	-0.1%	CEO transition to John Pawlowski and broader board refresh initiative.
Dec 04	Earnings date set	Neutral	+0.8%	Announcement of timetable and access details for Q4 and FY25 results call.
Nov 26	Board appointment	Neutral	+0.8%	Appointment of Douglas Stone as independent director and compensation committee member.

Pattern Detected

Recent news has mostly seen price moves align with event tone, with a small divergence on strong FY25 earnings where shares were roughly flat-to-slightly down despite positive fundamentals.

Recent Company History

Over the past several months, Mission Produce has reported record FY25 revenue of $1.39 billion and higher adjusted EBITDA, alongside leadership succession where John Pawlowski becomes CEO around the April 2026 annual meeting. The company also announced a cash-and-stock deal to acquire Calavo Growers on Jan 14, 2026, expanding its avocado footprint and prepared foods presence. Board refreshment continued with Douglas Stone’s appointment in Nov 2025. Today’s limited-duration rights plan follows these strategic and governance moves, intersecting with recent significant share accumulation by Globalharvest.

Market Pulse Summary

This announcement details a one-year stockholder rights plan effective January 21, 2026, with rights...

Analysis

This announcement details a one-year stockholder rights plan effective January 21, 2026, with rights issued to holders of record on February 4, 2026 and key thresholds at 15% and 50% ownership. It follows significant open‑market buying by Globalharvest reported in recent Form 4s and an updated Schedule 13D/A, plus the Calavo acquisition agreement and leadership transition plans. Investors may watch future SEC filings, board actions under the plan’s redemption or exchange features, and progress on the Calavo merger for further context.

Key Terms

stockholder rights plan, preferred stock purchase right, series a junior participating preferred stock, tender offer, +3 more

7 terms

stockholder rights plan regulatory

"approved the adoption of a limited duration stockholder rights plan (the “Rights Plan”)"

A stockholder rights plan is a strategy used by a company to protect itself from unwanted takeovers by making it more difficult or expensive for an outside party to acquire a large ownership stake without approval. It often involves granting existing shareholders special rights that activate if someone attempts to buy a significant portion of the company, helping to safeguard the company's interests and giving investors confidence that decisions are made with stability in mind.

preferred stock purchase right financial

"one preferred stock purchase right will be distributed for each share of common stock"

A preferred stock purchase right is a contractual option that lets a holder buy preferred shares at a predetermined price and under set conditions. For investors, it matters because exercising that right can change ownership stakes, bring priority claims on dividends and assets, and dilute other shareholders — in short, it affects potential income, control and the value of existing shares much like a coupon that can be redeemed for a special class of stock.

series a junior participating preferred stock financial

"one one-hundredth of a share of newly-created Series A Junior Participating Preferred Stock"

A Series A junior participating preferred stock is a specific class of preferred share that gives its holders a priority payment when a company distributes cash (like dividends or sale proceeds) but ranks below any senior preferred shares for those payments; the “participating” feature lets holders also share in leftover proceeds with common shareholders after receiving their preference. For investors this means a mix of downside protection and potential upside—more safety than common stock but less claim than senior preferred, while still allowing extra gains if the company performs well, similar to having a reserved seat that also lets you join the crowd when there’s a bonus.

tender offer regulatory

"announces a tender offer and the consummation of that offer would result in such ownership"

A tender offer is a proposal made by a person or company to buy shares from existing shareholders at a set price, usually higher than the current market value, within a specific time frame. It matters to investors because it can lead to a change in ownership or control of a company, and shareholders must decide whether to sell their shares at the offered price.

derivative transactions financial

"including shares that are synthetically owned pursuant to derivative transactions or ownership of derivative securities"

Derivative transactions are contracts whose value depends on the price or performance of something else—like stocks, bonds, currencies, interest rates or commodities. Think of them as insurance or bets about a future price: investors use them to protect against losses, lock in prices, or try to amplify returns, but they can also magnify losses, create cash demands and expose a firm to the risk that the other party won’t meet its obligation, so they can materially affect a company’s financial stability and volatility.

business combination transaction regulatory

"If the Company is acquired in a merger or other business combination transaction that has not been approved"

A business combination transaction is when two companies join together—through a merger, acquisition or similar deal—so they operate as one entity. For investors, it matters because the deal can change ownership stakes, the company’s value, future profits and risks, and often leads to new management or strategy; think of two households combining finances and plans, which can improve efficiency but also bring uncertainty about who controls the budget and how resources are used.

form 8-k regulatory

"Further details about the rights plan will be contained in a Form 8-K to be filed"

A Form 8-K is a report that companies file with the government to share important news quickly, such as changes in leadership, major business deals, or financial updates. It matters because it helps investors stay informed about significant events that could affect the company's value or stock price.

AI-generated analysis. Not financial advice.

OXNARD, Calif., Jan. 22, 2026 (GLOBE NEWSWIRE) -- Mission Produce, Inc. (Nasdaq: AVO) (“Mission Produce” or the “Company”), a world leader in sourcing, producing, and distributing fresh Hass avocados, with additional offerings in mangos and blueberries, today announced that its Board of Directors has approved the adoption of a limited duration stockholder rights plan (the “Rights Plan”), effective January 21, 2026, with a one-year duration expiring on January 21, 2027.

The Rights Plan was approved in response to the accumulation of the Company’s common stock by a strategic investor, Globalharvest Holdings Venture Ltd. The Company has engaged, and expects to continue to engage, in dialogue with Globalharvest Holdings Venture Ltd. regarding its investment in the Company. However, discussions to date have not resulted in any commitments regarding Globalharvest’s intended level of ownership. The Rights Plan is designed to promote the fair and equal treatment of all stockholders and to reduce the likelihood that any person or group gains control or undue influence over the Company through open market accumulations or other tactics without paying all shareholders an appropriate control premium. The Rights Plan is not being adopted in response to a proposal or intended to deter offers that are fair and otherwise in the best interests of the Company’s stockholders, and does not prevent the Board from considering or negotiating any proposal.

The Rights Plan is similar to other plans adopted by publicly held companies in comparable circumstances. Under the plan, one preferred stock purchase right will be distributed for each share of common stock held by stockholders of record on February 4, 2026. Under certain circumstances, each right will entitle stockholders to buy one one-hundredth of a share of newly-created Series A Junior Participating Preferred Stock of the Company at an exercise price of $63.00. The Company’s Board of Directors may redeem the rights at $0.01 per right at any time before a person or group has acquired 15% or more of the outstanding common stock. Additionally, at any time after a person or group becomes an acquiring person and before such person or group acquires 50% or more of the outstanding common stock, the Board of Directors may exchange the outstanding rights (other than those held by the acquiring person, which will be void) for shares of common stock at an exchange rate of one share of common stock per right, subject to adjustment. The Rights Plan is effective January 21, 2026 and has a one-year duration, expiring on January 21, 2027, subject to the Company’s right to extend such date, unless earlier redeemed or exchanged by the Company or terminated.

Subject to limited exceptions, if a person or group acquires 15% or more of the Company’s common stock (including shares that are synthetically owned pursuant to derivative transactions or ownership of derivative securities) or announces a tender offer and the consummation of that offer would result in such ownership (we refer to such a person or group as an “acquiring person”), each right will entitle its holder to purchase, at the right’s then-current exercise price, a number of shares of common stock having a market value at that time of two times the right’s exercise price. Rights held by the acquiring person will become void and will not be exercisable. If the Company is acquired in a merger or other business combination transaction that has not been approved by the Board of Directors after the rights become exercisable, each right will entitle its holder to purchase, at the right’s then-current exercise price, a number of shares of the acquiring company’s common stock having a market value at that time of two times the right’s exercise price.

The dividend distribution to establish the new Rights Plan will be payable to stockholders of record on February 4, 2026. The rights distribution is not taxable to stockholders. Further details about the rights plan will be contained in a Form 8-K to be filed by the Company with the SEC.

About Mission Produce, Inc.

Mission Produce is a global leader in the worldwide avocado business with additional offerings in mangos and blueberries. Since 1983, Mission Produce has been sourcing, producing and distributing fresh Hass avocados, and currently services retail, wholesale and foodservice customers in over 25 countries. The vertically integrated Company owns and operates four state-of-the-art packing facilities in key growing locations globally, including California, Mexico, Peru, Guatemala and has additional sourcing capabilities in Chile, Colombia, the Dominican Republic, Brazil, Ecuador, South Africa and more, which allow the company to provide a year-round supply of premium fruit. Mission’s global distribution network includes strategically positioned forward distribution centers across key markets throughout North America, China, Europe, and the UK, offering value-added services such as ripening, bagging, custom packing and logistical management. For more information, please visit www.missionproduce.com.

Forward-Looking Statements

Statements in this press release that are not historical in nature are forward-looking statements that, within the meaning of the federal securities laws, including the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, involve known and unknown risks and uncertainties. Words such as "may", "will", "expect", "intend", "plan", "believe", "seek", "could", "estimate", "judgment", "targeting", "should", "anticipate", "goal" and variations of these words and similar expressions, are also intended to identify forward-looking statements. The forward-looking statements in this press release address a variety of subjects, including statements about our short-term and long-term assumptions, goals and targets. Many of these assumptions relate to matters that are beyond our control and changing rapidly. Although we believe the expectations reflected in such forward-looking statements are based upon reasonable assumptions, we can give no assurances that our expectations will be attained. Readers are cautioned that actual results could differ materially from those implied by such forward-looking statements due to a variety of factors, including: reliance on primarily one main product, limitations regarding the supply of fruit, either through purchasing or growing; fluctuations in the market price of fruit; increasing competition; risks associated with doing business internationally, including Mexican and Peruvian economic, political and/or societal conditions; inflationary pressures; establishment of sales channels and geographic markets; loss of one or more of our largest customers; general economic conditions or downturns; supply chain failures or disruptions; disruption to the supply of reliable and cost-effective transportation; failure to recruit or retain employees, poor employee relations, and/or ineffective organizational structure; inherent farming risks, including climate change; seasonality in operating results; failures associated with information technology infrastructure, system security and cyber risks; new and changing privacy laws and our compliance with such laws; food safety events and recalls; failure to comply with laws and regulations; changes to trade policy and/or export/import laws and regulations; risks from business acquisitions, if any; lack of or failure of infrastructure; material litigation or governmental inquiries/actions; failure to maintain or protect our brand; changes in tax rates or international tax legislation; risks associated with global conflicts; inability to accurately forecast future performance; the viability of an active, liquid, and orderly market for our common stock; volatility in the trading price of our common stock; concentration of control in our executive officers, and directors over matters submitted to stockholders for approval; limited sources of capital appreciation; significant costs associated with being a public company and the allocation of significant management resources thereto; reliance on analyst reports; failure to maintain proper and effective internal control over financial reporting; restrictions on takeover attempts in our charter documents and under Delaware law; the selection of Delaware as the exclusive forum for substantially all disputes between us and our stockholders; risks related to restrictive covenants under our credit facility, which could affect our flexibility to fund ongoing operations, uses of capital and strategic initiatives, and, if we are unable to maintain compliance with such covenants, lead to significant challenges in meeting our liquidity requirements and acceleration of our debt; and other risks and factors discussed from time to time in our Annual and Quarterly Reports on Forms 10-K and 10-Q and in our other filings with the Securities and Exchange Commission. You can obtain copies of our SEC filings on the SEC’s website at www.sec.gov. The forward-looking statements contained in this press release are made as of the date hereof and the Corporation does not intend to, nor does it assume any obligation to, update or supplement any forward-looking statements after the date hereof to reflect actual results or future events or circumstances.

Company Contacts:

Investor Relations:
ICR
Jeff Sonnek
646-277-1263
jeff.sonnek@icrinc.com

Media:
Jenna Aguilera
Marketing Content and Communications Manager
Mission Produce, Inc.
press@missionproduce.com

FAQ

Why did Mission Produce (AVO) adopt a rights plan on January 21, 2026?

The Board adopted the plan after an accumulation of AVO shares by Globalharvest to promote fair treatment of stockholders and limit open-market control accumulations.

When will AVO stockholders receive the rights distribution?

One right will be distributed for each AVO share held of record on February 4, 2026.

What ownership level triggers Mission Produce's rights plan for AVO?

The rights become triggered if a person or group acquires 15% or more of AVO common stock, including certain synthetic holdings.

What is the exercise price and what does each right buy under the AVO plan?

Each right can permit purchase of 1/100th of a Series A Junior Participating Preferred share at an exercise price of $63.00 under specified conditions.

How long is the Mission Produce (AVO) Rights Plan effective?

The Rights Plan is effective Jan 21, 2026 and expires on Jan 21, 2027, unless redeemed, exchanged, extended, or terminated earlier.

Can Mission Produce redeem the rights before a takeover?

Yes. The Board may redeem the rights at $0.01 per right at any time before an acquiring person reaches 15% ownership.