Note 17 - Subsequent Events |
6 Months Ended |
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Sep. 26, 2020 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] |
( 1
7 ) 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. |