08:35 AM EDT, 08/16/2024 (MT Newswires) -- AN2 Therapeutics ( ANTX ) said Friday it adopted a shareholder rights plan after investor BML Investment Partners acquired additional shares to increase its stake in the pharmaceutical firm to nearly 20% within a week.

BML has acquired a total of 19.3% of AN2's stock as of Wednesday, a jump from a 14.2% stake as of Monday, according to regulatory filings.

Under the rights plan, each common share held by stockholders of record on Aug. 29 will be granted one preferred stock purchase right to purchase one one-thousandth of a share of newly created series A junior participating preferred stock at an exercise price of $6.50.

The board of directors are entitled to redeem the rights at $0.01 per right at any time before any shareholder has acquired at least 20% of the outstanding common stock, the company said.

The rights will expire on Aug. 15, 2025.