Quarterly report pursuant to Section 13 or 15(d)

Note 17 - Subsequent Events

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Note 17 - Subsequent Events
6 Months Ended
Sep. 26, 2020
Notes to Financial Statements  
Subsequent Events [Text Block]
 
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1
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Subsequent Events
 
Shareholder Rights Plan 
 
On
October 8, 2020,
the Company's Board of Directors announced the adoption of a Shareholders Rights Plan designed to ensure that all Giga-tronics shareholders would receive fair treatment in any takeover of the Company. The Plan provides for the distribution of
one
right (“Right”) for each share of common stock outstanding on the record date of
October 22, 2020.
 
The Rights Plan provides that in the event any person becomes the beneficial owner of
15%
or more of the outstanding common shares, each Right (other than a Right held by the
15%
shareholder) will be exercisable, on and after the close of business on the
tenth
business day following such event, for the purchase of a number of Giga-tronics common shares (or equivalent securities, such as
one
-hundredths of the Company's Series A Junior Participating Preferred Shares) equal to the exercise price (initially
$15.00
) divided by
25%
of the then current fair market value of the common stock.  The Rights Plan further provides that if, on or after the occurrence of such event, the Company is merged into any other corporation or
50%
or more of the Company's assets or earning power are sold, each Right (other than a Right held by the
15%
shareholder) will be exercisable to purchase a similar number of securities of the acquiring corporation.
 
The Rights expire on
October 22, 2025 (
unless previously triggered) and are subject to redemption by the Board of Directors at
$0.001
per Right at any time prior to the
first
date upon which they become exercisable to purchase common shares.
 
A copy of the Rights Agreement was filed with the SEC as an exhibit to a Form
8
-K filed by the Company on
October 13, 2020.
 
 
Paycheck Protection Program (the “PPP”) under the CARES Act
 
On
October 12, 2020,
the Company submitted an application for forgiveness after the
24
week period. The forgiveness process can take up to
five
months.