TrueBlue's Board of Directors unanimously resolved to adopt a limited duration shareholder rights agreement. This action was taken in response to an unsolicited proposal from HireQuest, Inc. to acquire all common stock of TrueBlue at $7.50 per share.
The Rights Agreement is intended to reduce the likelihood that any entity, person, or group can gain control of TrueBlue through open market accumulation without paying all shareholders an appropriate control premium. It also provides the Board with sufficient opportunity to make informed judgments.
Under the agreement, rights will generally become exercisable if a person or group acquires beneficial ownership of 15% or more of outstanding shares in an unapproved transaction. In such a scenario, other holders would be entitled to purchase additional shares at a 50% discount, or shares of an acquiring company's stock at a 50% discount if TrueBlue is acquired.
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