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The Board of Directors of FreightCar America, Inc. Adopts a Limited Duration Stockholder Rights Plan
FreightCar America (NASDAQ: RAIL) announced that its Board adopted a new limited duration stockholder rights plan effective August 5, 2026, replacing the existing plan that expires the same day. The plan aims to protect all stockholders’ long-term value and ensure fair treatment in any potential takeover.Under the Rights Plan, the Board declared a non-cash dividend of one preferred share purchase right for each common share outstanding as of August 5, 2026. The rights become exercisable if any person or group acquires at least 15% of common stock without Board approval, or 20% for eligible passive 13G filers. If triggered, each right (excluding those of the acquiring holder) allows stockholders to buy FreightCar America common shares at a 50% discount, while the acquiring party’s rights become void. According to the company, it continues to achieve industry-leading margins despite relatively low volumes, increased its share of new railcar orders to approximately 45% in Q2, and has expanded its higher-margin aftermarket business through strategic acquisitions.