12:37 PM EDT, 05/28/2024 (MT Newswires) -- Izea Worldwide ( IZEA ) said Tuesday its board adopted a limited-duration stockholder rights plan that covers rights to purchase a new series of preferred stock in certain circumstances.

The company said its board adopted the plan to safeguard shareholders' interest in an attempt to protect stockholders from coercive or otherwise unfair takeover tactics after a single investor rapidly accumulated its stock.

Izea's ( IZEA ) board approved a dividend of one preferred share right for each common share, payable on June 7, according to the company's filing.

The preferred share right will allow registered holders to purchase one one-thousandth of a share of series A junior participating preferred stock for $8.25 and the rights will be attached to all outstanding common shares, the company added.

The rights will be activated if a person or group acquires 15% or more of the Izea's ( IZEA ) common stock, with exceptions for existing shareholders, and significantly dilutes the ownership of the acquirer, according to the company.

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