09:26 AM EDT, 06/07/2024 (MT Newswires) -- Edgio ( EGIO ) said Friday it has adopted a rights plan to protect its available federal and state net operating loss carryforwards, or NOLs, and other tax benefits.

As of Dec. 31, Edgio ( EGIO ) said it has about $300 million in NOLs that can be used to offset taxable income.

The company's board declared a dividend of one preferred share purchase right for each outstanding share, to be issued to shareholders of record as of June 17 as part of the tax plan, Edgio ( EGIO ) said. The rights are exercisable upon acquiring at least 4.95% of Edgio's ( EGIO ) common stock, the company added.

The tax plan also includes an option to exchange an outstanding right for one common share, Edgio ( EGIO ) said, adding the rights will expire on June 30, 2025,

The company said the plan will be submitted for ratification by the stockholders at the annual meeting.

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