Emcore announces adoption of tax benefits preservation plan

Emcore announced that its board of directors has approved the adoption of a tax benefits preservation plan in the form of a Section 382 rights agreement designed to protect and preserve the long-term value of certain tax attributes primarily associated with net operating loss carryforwards. Emcore intends to submit the plan, which is similar to tax benefits preservation plans adopted by many other public companies with significant tax attributes, for shareholder ratification at its 2024 annual meeting of shareholders. As of September 30, 2022, Emcore had approximately $424.9M of federal net operating loss carryforwards, or NOLs, that could potentially be utilized in certain circumstances and subject to certain restrictions to offset Emcore’s future taxable income and reduce its federal income tax liability. Additional information with respect to these NOLs is contained in Emcore’s annual report on Form 10-K for the fiscal year ended September 30, 2022, which Emcore filed with the Securities and Exchange Commission on December 28, 2022.