Biofrontera Inc. adopts limited duration shareholder rights plan

Biofrontera announced that its Board of Directors has adopted a limited duration shareholder rights plan, and declared a dividend distribution of one preferred stock purchase right on each outstanding share of common stock, in order to protect the interest of all of the Company's shareholders. The rights will be issued to shareholders of record on October 24, 2022 and will expire on October 13, 2023. The Board believes that the current price of the Company's common stock is not reflective of the Company's intrinsic or long-term value. The Board further believes the Rights Plan is an effective course of action to fulfill its fiduciary duties to the Company and its shareholders, and to enable shareholders to realize the long-term value of their investment. The Rights Plan was adopted following a careful evaluation and consultation with the Company's external legal and financial advisors. The Rights Plan is similar to plans adopted by other publicly traded companies. Pursuant to the Rights Plan, the Company will distribute one right for each share of common stock outstanding as of the close of trading on October 24, 2022. While the Rights Plan is effective immediately, the rights would become exercisable only if a person or group, or anyone acting in concert with such a person or group, acquires beneficial ownership, as defined in the Rights Plan, of 20% or more of the Company's issued and outstanding common stock in a transaction not approved by the Company's Board of Directors. In that situation, each holder of a right (other than the acquiring person or group, or anyone acting in concert as defined in the Rights Plan with such person or group), will have the right to purchase a number of shares of Company common stock at an exercise price of one-half the market value of the right. In addition, at any time after a person or group acquires 20% or more of the Company's common stock, unless such person or group acquires 50% or more, the Company's Board of Directors may exchange one share of the Company's common stock for each outstanding right, other than rights owned by such person or group, which would have become void.