SANTA CLARA, Calif. April 25, 2012 July 3, 2011 $262.1M $92.3
In general, the Rights Plan provides that stockholders shall not hold in excess of 4.95% of the Company’s outstanding common stock in order to protect the NOL asset. The Board will continue to consider exemptions, and has previously granted exemptions to investors (including Starboard Value and Opportunity Fund, Ltd) that have allowed such investors to exceed the 4.95% ownership limit under the Rights Plan. In such situations, the Board, in consultation with legal and tax advisors, determined that such exemptions would not trigger impairment of the Company’s NOL under the relevant Internal Revenue Service calculations and would therefore not threaten the usage of the Company’s NOL position.
The Board continues to believe that not redeeming the rights issued pursuant to the Rights Plan and maintaining the Rights Plan is consistent with, and in furtherance of, its fiduciary duties and is in stockholders’ best interests.
Thursday, April 26, 2012 2:00 p.m. Pacific Time Santa Clara, California
Extreme Networks, Inc.
Santa Clara, CA http://www.extremenetworks.com
SOURCE Extreme Networks, Inc.