Given Imaging schedules meeting of shareholders
Given Imaging Ltd., an Israeli maker of pill-sized diagnostic cameras, said Tuesday that it has scheduled a special meeting of shareholders to approve an amended and restated registration rights agreement between the company and its affiliated shareholders.
The affiliated shareholders — Discount Investment Corp., Elron Electronic Industries Ltd. and RDC Rafael Development Corp. — collectively own about 46.7 percent of Given Imaging's shares.
They requested an extension and amendment of the terms of the registration rights agreement to help facilitate future pledges of their shares in the company in order to secure loans and credit lines.
The companies have told Given Imaging that if the amended registration rights agreement isn't approved, they intend to require registration of their shares before the current agreement expires.
Given Imaging's board believes that could negatively affect the market for Given Imaging's shares and result in registration costs, the company said.
Israeli corporate law requires shareholders to approve a change in the registration rights agreement.
Shareholders of record on Oct. 6 will be entitled to vote at the meeting, which is scheduled for Nov. 15.
Shares of Given Imaging rose $1.37, or 8.7 percent, to $17.01 in afternoon trading.