Investor Presentaiton
LSB
INDUSTRIES
Stockholder Rights Plan in Place to Preserve Substantial NOL's
Our Section 382 Stockholder Rights Plan (the "Rights Plan") is intended to protect our substantial net operating losses
("NOLS"), carryforwards and other tax attributes.
We can generally use our NOLs and other tax attributes to reduce federal and state income tax that would be paid in the
future.
Our ability to use our NOLS could be substantially limited if we experience an "ownership change," as defined under Section
382 of the Internal Revenue Code of 1986, as amended (the "Code") and the rights plan has been designed to help prevent
such an "ownership change."
The Rights Plan provides that if any person becomes the beneficial owner (as defined in the Code) of 4.9% or more of our
common stock, stockholders other than the triggering stockholder will be entitled to acquire shares of common stock at a 50%
discount or LSB may exchange each right held by such holders for one share of common stock.
Under the Rights Plan, any person which currently owns 4.9% or more of LSB's common stock may continue to own its shares
of common stock but may not acquire any additional shares without triggering the Rights Plan.
Our Board of Directors has the discretion to exempt any person or group from the provisions of the Rights Plan.
On August 22, 2023, the Company entered into an Amended and Restated Section 382 Rights Agreement. As a result, the
Rights Plan will continue in effect until August 22, 2026, unless terminated earlier in accordance with its terms. The Company
plans to submit the Amended and Restated Section 382 Rights Agreement to a vote of the stockholders at its 2024 Annual
Meeting of Stockholders.
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