Performance Shipping Inc. Adopts Shareholders’ Rights Agreement
ATHENS, GREECE, December 20, 2021 – Performance Shipping Inc. (NASDAQ: PSHG), (the “Company”), a global shipping company specializing in the ownership of tanker vessels, announced today that its Board of Directors has unanimously adopted a shareholders’ rights agreement (the “Rights Agreement”) and declared a dividend of one right (the “Right”) for each share of the Company’s common stock, par value $0.01 per share (the “Common Stock”) held as of December 30, 2021. The Rights Agreement has a term of ten years.
Pursuant to the Rights Agreement, each Right will entitle the shareholder to buy one one-thousandth of a share of Series A participating preferred stock at an exercise price of $50.00.
Under the Rights Agreement, the rights generally will become exercisable only if a person or group acquires beneficial ownership (as defined in the Rights Agreement) of 10% or more of the Company’s Common Shares in a transaction not approved by its Board of Directors. In that situation, each holder of a right (other than the acquiring person, whose rights will become void and will not be exercisable) will have the right to purchase, upon payment of the exercise price, a number of shares of the Company’s Common Shares having a then-current market value equal to twice the exercise price.
Under the Rights Agreement’s terms, it will expire on December 20, 2031.
Additional information about the Rights Agreement is contained in a report on Form 6-K filed by the Company with the U.S. Securities and Exchange Commission.