Cue Health adopts limited-duration shareholder rights plan

Cue Health announced that its Board of Directors has unanimously approved the adoption of a limited-duration shareholder rights plan to protect the long-term interests of all shareholders. The Board adopted the Rights Plan in response to a rapid accumulation of shares by a third party. The Rights Plan is effective immediately and has a one-year term, expiring on September 20, 2024. “Cue is committed to engaging in constructive dialogue with our shareholders, and we value their perspectives,” said Ayub Khattak, Chairman and Chief Executive Officer of Cue Health. “We are also focused on ensuring that all shareholders receive fair and equal treatment and are able to realize the full long-term value of their investment, which is what a Rights Plan is designed to do. As we look ahead, we are focused on executing our strategic plan, and we are confident that Cue is poised for significant sustainable growth with numerous near-term milestones.” The Rights Plan is designed to reduce the likelihood that any entity, person, or group can gain control of Cue through open market accumulation without paying all other shareholders an appropriate control premium and on terms that would not deliver sufficient value for all shareholders. It will also give the Board sufficient time to make informed judgments and take actions that it believes are in the best interests of all shareholders. The Rights Plan does not preclude the Board from considering an offer that recognizes the full value of Cue.