CLST's ability to use its NOLs and built in losses would be limited if there was an "ownership change" under Section 382. This would occur if stockholders owning (or deemed under Section 382 to own) 5% or more of the CLST's stock increase their collective ownership of the aggregate amount of outstanding shares of CLST by more than 50 percentage points over a defined period of time. The Rights Plan was adopted to reduce the likelihood of an "ownership change" occurring as defined by Section 382.
Under the Rights Plan, one right will be distributed for each share of common stock of CLST outstanding as of the close of business on
The Rights Plan will continue in effect for ten years after the date of the Rights Plan, unless it is terminated or the rights are redeemed earlier by CLST.
On or prior to
Forward?Looking Statement
Certain information included herein and in other company reports may contain forward?looking statements, including statements concerning estimated future sales and earnings, new product introduction, and operational improvement. Forward?looking statements involve known and unknown risks and uncertainties that may cause the actual results in future periods of CLST Holdings, Inc. to differ materially from forecasted results. Please refer to our reports and filings with the Securities and Exchange Commission, including our most recent Annual Report on Form 10?K and Quarterly Reports on Form 10?Q, for a further discussion of these risks and uncertainties. We also caution you not to place undue reliance on forward?looking statements, which speak only as of the date they are made. We undertake no obligation to update publicly any forward?looking statements to reflect new information, events or circumstances after the date they were made or to reflect the occurrence of unanticipated events.
SOURCE CLST Holdings, Inc.