Barnwell Industries amends rights agreement

Barnwell Industries, Inc. (NYSE American:BRN), a company specializing in crude petroleum and natural gas with annual revenue of $21.72 million, has amended its Rights Agreement, according to a recent filing with the Securities and Exchange Commission (SEC).

According to InvestingPro data, the company operates with moderate debt levels and has shown strong returns over the last month. The amendment was made to clarify the Board of Directors’ fiduciary duties under applicable law.

The initial Rights Agreement, facilitating a dividend distribution of one right for each outstanding share of common stock, was entered on January 26, 2025. While the company currently does not pay regular dividends to shareholders, this rights distribution comes as Barnwell maintains a healthy current ratio of 1.14. Shareholders of record as of February 7, 2025, are eligible for the dividend.

This amendment to the Rights Agreement, dated February 6, 2025, was made to ensure that the Rights Agreement does not impede the Board’s fiduciary responsibilities. The adjustment was made in collaboration with Broadridge Corporate Issuer Solutions, LLC, who acts as the rights agent. Investors should note that Barnwell’s next earnings report is scheduled for February 11, 2025. Get deeper insights and additional financial metrics with InvestingPro.

The Rights Agreement and its amendment are crucial governance documents for the company, outlining the mechanisms by which shareholder rights are protected. The specifics of the amendment are detailed in Exhibit 4.1 attached to the SEC filing.

The company, headquartered in Honolulu, Hawaii, has not disclosed further details on the implications of the amendment for shareholders or the company’s operations. The information is based on a press release statement.

In other recent news, Barnwell Industries Inc. has made significant changes to its corporate bylaws, directly affecting stockholder meeting rights. The company’s Board of Directors approved an amendment that removes the provision allowing stockholders with at least a 25% share in the company’s issued and outstanding capital stock to call a special meeting.

This decision, effective February 4, 2025, was disclosed in a Form 8-K filing with the Securities and Exchange Commission (SEC). The revised bylaws, which provide the full details of the changes, are attached to the filing. This development, as reported in the company’s recent SEC filing, is aimed at informing stockholders and potential investors about the changes in stockholder rights.

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