Collectors Universe Approves Stockholder Rights Plan
January 13 2009 - 8:30AM
PR Newswire (US)
NEWPORT BEACH, Calif., Jan. 13 /PRNewswire-FirstCall/ -- Collectors
Universe, Inc. (NASDAQ:CLCT), a leading provider of value-added
authentication and grading services to dealers and collectors of
high-value collectibles, diamonds and colored gemstones, today
announced that, on January 9, 2009, its Board of Directors
unanimously adopted a limited duration stockholder rights plan. The
Plan has an initial term of one year ending in January 2010, but
may be extended for two additional years if the Plan is approved by
the stockholders on or prior to the end of that initial one-year
term. Commenting on the newly adopted plan, Michael Haynes, Chief
Executive Officer of Collectors Universe, stated, "We continue to
be optimistic regarding the Company's long-term prospects which we
believe are not adequately reflected in the current trading price
of our stock. With the general market for securities depressed, our
Board has taken this action to protect our stockholders from any
attempt that might be made to acquire or control the company at an
unreasonably low price. The Board also believes that the rights
plan will help ensure that the Company has the opportunity to
pursue its strategic plan and the Board will have adequate time to
evaluate alternatives if such a takeover attempt were to be made.
The rights plan as adopted is a temporary measure and compliant
with ISS guidelines. The plan is not intended to and will not
prevent an acquisition of the Company which is determined to be
advantageous to the stockholders." In connection with the adoption
of the stockholder rights plan, the Board of Directors declared a
non-taxable distribution of rights to purchase shares of a new
series of preferred stock to all stockholders of record as of
January 23, 2009. Under the Plan, if anyone becomes the beneficial
owner of 20 percent or more of the Company's outstanding shares,
then, subject to limited exceptions, each right (other than those
held by that 20 percent or more beneficial owner) will become
exercisable and entitle its holder to purchase, at the exercise
price of the right, a number of the Company's shares having a
market value of twice the right's exercise price. If anyone
announces or commences a tender offer or exchange offer for the
Company's shares, then, subject to limited exceptions, each right
will entitle its holder (other than the offeror) to purchase, at
the exercise price of the right, a number of the acquiring party's
shares having a market value at that time of twice the right's
exercise price. Unless and until either of those events occurs, the
rights will not be exercisable, will trade with the Company's
common stock and no rights certificates will be issued. Additional
information regarding the rights plan and the rights will be
contained in a Current Report on Form 8-K that the Company will be
filing with the Securities and Exchange Commission (SEC). In
addition, the Company will be sending stockholders a Summary of the
Rights that will describe the material terms of the rights plan.
About Collectors Universe Collectors Universe, Inc. is a leading
provider of value added services to the high-value collectibles and
diamond and colored gemstones markets. The Company authenticates
and grades collectible coins, sports cards, autographs, stamps,
currency, diamonds and colored gemstones. The Company also compiles
and publishes authoritative information about United States and
world coins, collectible sports cards and sports memorabilia,
collectible stamps, diamonds and colored gemstones. This
information is accessible to collectors and dealers at the
Company's web site, http://www.collectors.com/, and is also
published in print. Cautionary Statements Regarding Forward Looking
Information This news release contains statements regarding our
expectations, beliefs or views about our future financial
performance that are based on management's current beliefs and
assumptions. Such statements constitute "forward-looking
statements" as defined in the Private Securities Litigation Reform
Act of 1995. Due to a number of risks and uncertainties to which
our business is subject, our actual financial performance in the
future may differ, possibly significantly, from our beliefs and
expectations set forth in the forward looking statements contained
in this news release. Information regarding those risks and
uncertainties, and their possible impact on our future financial
performance, include, but are not limited to, the risks that our
strategy to expand into new collectibles and other high value asset
markets, such as the diamond and colored gemstone markets, and to
offer new services in our existing markets will not be successful
in enabling us to improve our profitability or may even cause us to
incur losses. Additional information regarding these and other
risks and uncertainties to which our business is subject is
contained in our Annual Report on Form 10-K for our fiscal year
ended June 30, 2008, which we filed with the SEC on September 30,
2008. Due to these risks and uncertainties, readers are cautioned
not to place undue reliance on the forward-looking statements
contained in this news release or in that Annual Report, which
speak only as of their respective dates. We also disclaim any
obligation to update or revise any of the forward-looking
statements as a result of new information, future events or
otherwise, except as may be required by law or NASDAQ rules.
Contact: Joseph Wallace Chief Financial Officer Collectors Universe
949-567-1245 Email: DATASOURCE: Collectors Universe, Inc. CONTACT:
Joseph Wallace, Chief Financial Officer, Collectors Universe,
+1-949-567-1245, Web Site: http://www.collectors.com/
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