NEW YORK - WisdomTree, Inc. (NYSE:WT), a global provider of exchange-traded products, has announced that its Board of Directors is seeking stockholder approval to extend its stockholder rights plan at the upcoming 2024 Annual Meeting. This move is intended to protect stockholder interests and prevent any single investor or group from gaining disproportionate control without offering a premium.
The rights plan, which was initially approved at the 2023 Annual Meeting, is set to automatically expire the day after the 2024 Annual Meeting unless stockholders vote for an extension. If extended, the plan will remain in effect until March 17, 2025. This plan is designed to ensure that all stockholders are treated equally in the event of a takeover bid and to maintain their ability to realize the long-term value of their investment.
Under the terms of the rights plan, the rights will be exercisable only if a person or group acquires a 10% stake (or 20% for passive stockholders) in WisdomTree's common stock. The plan includes a qualifying offer clause allowing stockholders to call a special meeting to consider exempting a qualifying offer from the plan's provisions.
WisdomTree emphasizes that the rights plan does not prevent the Board from considering any offer that reflects the company's full value. Furthermore, the plan avoids features that would restrict future boards from redeeming the rights.
The company has filed detailed information about the rights plan with the U.S. Securities and Exchange Commission. BofA Securities is acting as financial advisor, Paul Hastings LLP as legal counsel, Innisfree M&A Incorporated as proxy solicitor, and H/Advisors Abernathy as strategic communications advisor for WisdomTree.
This initiative is part of WisdomTree's broader strategy to innovate in the financial sector, including the development of blockchain-enabled mutual funds and tokenized assets, as well as the WisdomTree Prime digital wallet.
The information in this article is based on a press release statement from WisdomTree, Inc.
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