Aviation General Inc. Announces Stock Repurchase Plan and Stockholder Rights Plan.BETHANY, Okla.--(BUSINESS WIRE)--April 7, 1999--Aviation General Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :AVGE AVGE Advanced Video Guidance Sensor ) announced today that its Board of Directors has authorized the purchase of up to 1 million shares of the Company's outstanding common stock. Purchases of shares will be made from time to time, in either open market or negotiated transactions, subject to market conditions. The Company's Board also has approved a Stockholder Rights Plan (the "Plan") for the Company. The Board of Directors believes these actions are in the best interest of the company and its shareholders. The Board of Directors authorized the Stock Repurchase Plan stock repurchase plan 1. See buyback. 2. See self-tender. because it believes that the Company's shares are currently undervalued Undervalued A stock or other security that is trading below its true value. Notes: The difficulty is knowing what the "true" value actually is. Analysts will usually recommend an undervalued stock with a strong buy rating. in the marketplace. The Stockholder Rights Plan was adopted because the Board has determined that it is in the best interests of the Company and its stockholders to take steps to take action; to move in a matter. See also: Step to prevent coercive, unfair or inadequate tender offers or other abusive takeover tactics and to preserve the value of the stockholders' investment in the Company. The Plan is not intended to prevent an acquisition of the Company on terms that maximize value for all stockholders. The Rights Plan initially provides each stockholder of the Company with a right to purchase one one-thousandth of a preferred share at a purchase price of $80.00 for each share of common stock held. Generally, should any person or entity become the beneficial owner Beneficial Owner A person who enjoys the benefits of ownership even though title is in another name. Notes: For example, when shares of a mutual fund are held by a custodian bank or when securities are held by a broker in street name, the true owner is the beneficial of 15% or more of the Company's outstanding common stock, each right would become a right entitling the holder, other than the acquiring person, to purchase for the purchase price Company Common Stock having a value of twice the purchase price. The record date set for distribution of the rights under the Rights Plan is April 7, 1999, after which any shares of common stock will automatically be accompanied by the associated rights. The rights expire on April 7, 2009 (unless previously triggered), and are subject to redemption by the Board of Directors of the Company at $0.01 per right at any time prior to the first date upon which they become exercisable. Aviation General Inc. is a publicly traded holding company with two wholly-owned subsidiaries, Commander Aircraft Company and Strategic Jet Services Inc. Commander Aircraft Company manufactures, markets and provides support services support services Psychology Non-health care-related ancillary services–eg, transportation, financial aid, support groups, homemaker services, respite services, and other services for its line of single engine, high performance, Commander aircraft and consulting, brokerage and refurbishment re·fur·bish tr.v. re·fur·bished, re·fur·bish·ing, re·fur·bish·es To make clean, bright, or fresh again; renovate. re·fur services for all types of piston aircraft through its Aviation Services division. Strategic Jet Services Inc. provides consulting, brokerage and refurbishment services for jet aircraft. |
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