Why Is Nanostock Jet.AI Falling Nearly 4% After-Hours?

• The rights will be exercisable only if a person or group acquires 10% or more of the company’s outstanding common stock.
• The rights will expire on February 12, 2027, unless the rights are earlier redeemed or exchanged.

Jet.AI on Friday announced the adoption of a limited duration stockholders’ rights and declared a dividend distribution of one preferred share purchase right on each outstanding share of the company’s common stock.

The company said that the rights are designed to assure that all of its stockholders receive fair and equal treatment in the event of any proposed takeover of the firm and to guard against abusive tactics to gain control of the company without paying all stockholders a premium for that control.

More On Rights Adoption

The company said that the adoption of new rights will not prevent a takeover but should encourage anyone seeking to acquire the company to negotiate with the Jet.AI’s board prior to attempting a takeover.

The rights will be exercisable only if a person or group acquires 10% or more of the company’s outstanding common stock.

The dividend distribution will be made on February 24, 2026, payable to stockholders on that date and is not taxable to stockholders. The rights will expire on February 12, 2027, unless the rights are earlier redeemed or exchanged.

Other News

Jet.AI on Thursday cancelled a previously planned $50 million financing tied to an amended merger agreement with flyExclusive. Jet.AI while cancelling the financing said the financing is no longer necessary, since it now has sufficient positive net working capital to meet the merger’s minimum cash requirement. 

As per the revised terms, the companies removed a closing condition that required Jet.AI to secure a new securities purchase agreement with a third-party investor. The previously planned arrangement included a warrant for up to $50 million in preferred stock.

Jet.AI and flyExclusive signed an agreement last year under which flyExclusive would acquire Jet.AI’s aviation business in an all-stock deal. 

How Did Stocktwits Users React?

Retail sentiment on Stocktwits around JTAI was in ‘bullish’ territory amid ‘high’ message volume. 

Shares in the firm fell 94% over the past year.

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