MEI Pharma announces limited-duration stockholder rights plan

MEI Pharma announced that its Board of Directors has unanimously approved the adoption of a limited-duration stockholder rights plan under which stockholders will receive rights to purchase a new series of preferred stock in certain circumstances. The Board of Directors resolved to adopt the Rights Plan following the recent Schedule 13D amendments filed by Anson Advisors and Cable Car Capital LLC, in which the Anson and Cable Car Group disclosed that they and their affiliates have acquired a position that represents approximately 19.9% of the outstanding shares in MEI Pharma held outright. Additionally, the Anson and Cable Car Group have sold exchange-listed put options representing a potential aggregate of an additional 1.5M shares. Pursuant to the Rights Plan, the company is issuing one right for each share of common stock as of the close of business on October 12, 2023. The rights will initially trade with MEI Pharma’s common stock and will become exercisable only if any person acquires 20% or more of the company’s outstanding common stock. In that case, each holder of a right will be entitled to purchase, at the then-current exercise price, additional shares of common stock having a then-current market value of twice the exercise price of the right. Any stockholders with beneficial ownership of 20% or more of the company’s outstanding common stock prior to this announcement are grandfathered at their current ownership levels but are not permitted to increase their ownership without triggering the Rights Plan. The Rights Plan is effective immediately and will expire on September 30, 2024.