Utah Medical Products, Inc. Terminates its Shareholder Rights Agreement

Rhea-AI Summary

Utah Medical Products, Inc. (Nasdaq: UTMD) announced the termination of its Shareholder Rights Agreement by unanimous consent of the Board of Directors. Originally approved in 1994 and extended multiple times, the decision reflects evolving corporate governance standards and shareholder feedback. The company focuses on developing specialty medical devices for women and infants, recognized worldwide for their quality. This strategic move aims to align with changing investor expectations and modern governance practices.

Positive

• Termination of the Shareholder Rights Agreement may improve corporate governance and shareholder relations.

Negative

• None.

News Market Reaction – UTMD

+5.20%

+5.20% Session move

In the trading session that priced this news, UTMD gained 5.20%, reflecting a notable positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

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Salt Lake City, UT , March 01, 2021 (GLOBE NEWSWIRE) -- via NewMediaWire -- Utah Medical Products, Inc. (Nasdaq: UTMD) announces that its Board of Directors, acting by unanimous written consent, terminated the Company’s Shareholder Rights Agreement, sometimes referred to as a “poison pill.”  The Rights Agreement with a ten year life was originally approved by a vote of all shareholders at the 1994 Annual Meeting, and then was extended in 2004 and again in 2014 by the board without a shareholder vote. The board elected to terminate the rights agreement in response to changing corporate governance practices and investor input. 

Utah Medical Products, Inc., with particular interest in health care for women and their babies, develops, manufactures and markets a broad range of disposable and reusable specialty medical devices recognized by clinicians in over a hundred countries around the world as the standard for obtaining optimal long term outcomes for their patients.  For more information about Utah Medical Products, Inc., visit UTMD’s website athttp://www.utahmed.com.

Contact:  Crystal Rios
(801) 566-1200           

FAQ

What did Utah Medical Products announce on March 1, 2021?

The company announced the termination of its Shareholder Rights Agreement.

Why did Utah Medical Products terminate its Shareholder Rights Agreement?

The termination was in response to changing corporate governance practices and investor input.

What is the significance of the Shareholder Rights Agreement for Utah Medical Products?

The agreement, often referred to as a 'poison pill,' was aimed at protecting the company from hostile takeovers.