Catch up on news from Wisconsin’s innovation community with these recent headlines:
—Arrowhead Pharmaceuticals, which is based in Pasadena, CA, but houses its research and development operations in Madison, entered into a stockholder rights agreement. This type of agreement, known colloquially as a “poison pill,” is typically aimed at protecting a company’s shareholders in the event of a hostile takeover attempt.
Arrowhead (NASDAQ: ARWR) said in a press release that it would give stockholders a right to purchase one one-thousandth of a share of a new series of preferred stock at the price of $20 for each common share owned. This right would trigger only if an investor or investment group acquires a 15 percent or greater stake in Arrowhead. Under the terms of the agreement, shareholders who buy preferred stock would receive the same dividend, voting rights, and liquidation preferences as one share of common stock. That means purchasers of the new preferred stock would essentially have two votes per share owned. The idea is to make it easier for existing shareholders to buy more shares, and in the process dilute the shares held by the acquiring company. Arrowhead said that if it receives a takeover offer, owners of preferred stock would be able to buy $40 worth of common stock for $20. Read the full story here.