Capstone Holding Corp. Reinstates Tax Benefit Plan
Capstone Holding Corp. reinstated a Tax Benefit Plan, declaring a dividend distribution of one Right for each outstanding share of common stock to shareholders of record as of May 1, 2024. Each Right entitles the holder to purchase Series A Preferred Stock at an exercise price of $5. The Board aims to protect the Company's Tax Benefits through the Benefit Plan until April 1, 2027.
The Board's decision to reinstate the Tax Benefit Plan demonstrates a commitment to protecting the Company's valuable Tax Benefits.
Shareholders may experience dilution due to the issuance of Rights entitling them to purchase Preferred Stock at a potentially lower price than market value.
ALSIP, IL / ACCESSWIRE / May 3, 2024 / Capstone Holding Corp. (OTCQB:CAPS) ("the Company")
On May 1, 2024, the Board of Directors (the "Board") of Capstone Holding Corp. (the "Company") authorized and declared a dividend distribution of one right (a "Right") for each outstanding share of common stock, par value
By adopting the Benefit Plan, the Board is seeking to protect the Company's ability to use its net operating losses and other tax attributes (collectively, "Tax Benefits"). The Company views its Tax Benefits as highly valuable assets of the Company that are likely to inure to the benefit of the Company and its shareholders. The Board believes that it is in the best interests of the Company and its shareholders that the Company provide for the protection of these assets. The final expiration date of the Benefit Plan is April 1, 2027.
Please see the Company's Annual Report filed with the OTCQB Markets for further information.
About Capstone Holding Corp.
Capstone Therapeutics was a biotechnology company committed to developing novel therapeutic peptides aimed at helping patients with under-served medical conditions. The drug development business has been discontinued and the Company's name changed to Capstone Holding Corp. The Company's primary business activities presently include the operations of TotalStone, LLC, a construction materials company.
Capstone's corporate headquarters is located in Alsip, Illinois. For more information, please visit the Company's website: www.capstonethx.com.
Statements in this press release or otherwise attributable to Capstone regarding our business that are not historical facts are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from predicted results. These risks include the factors discussed in our Annual Report for the fiscal year ended December 31, 2023, and other documents we filed with the U.S. Securities and Exchange Commission or OTCQB Markets.
FOR FURTHER INFORMATION:
Investor Relations
(708)371-0660
investorinquiries@capstonethx.com
SOURCE: Capstone Holding Corp.
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FAQ
<p>What is Capstone Holding Corp.'s Tax Benefit Preservation Plan?</p>
The Tax Benefit Preservation Plan aims to protect the Company's ability to utilize its net operating losses and other tax attributes, considered valuable assets.
<p>When was the Benefit Plan adopted by Capstone Holding Corp.?</p>
The Benefit Plan was adopted by Capstone Holding Corp. on May 1, 2024.
<p>How long will the Benefit Plan be in effect?</p>
The Benefit Plan is set to expire on April 1, 2027.
