08:32 AM EDT, 06/06/2024 (MT Newswires) -- DMC Global Inc ( BOOM ) said Thursday its board of directors has unanimously approved a limited-duration shareholder protection rights agreement.

The approval of the plan, which became effective Wednesday and will expire June 4, 2025, was in response to the accumulation of shares of the company's common stock. The plan is intended to reduce the likelihood of any entity, person, or group gaining control of the company through open-market accumulation without paying a premium.

The company said the plan is not intended to deter offers and does not prevent the board from considering takeover offers.

Under the plan, the company is issuing one right for each share of common stock as of the close of business on June 17. The rights will initially trade with DMC's common stock and will generally become exercisable only if any person or group acquires 10% or more, or 20% in the case of certain passive investors of the company's outstanding common stock.