Bimini Capital Management, Inc. (OTCQX:BMNM) adopted a First Amendment to its Stockholder Rights Plan on December 10 2025. The amendment extends the plan’s expiration from December 21 2025 to December 21 2030 and raises the purchase price of the rights from $4.76 to $10.20 per share.
The primary purpose of the amendment is to safeguard the company’s substantial net operating loss (NOL) carryforwards—approximately $253.9 million as of September 30 2025—by reducing the likelihood of an ownership change that would trigger Section 382 limitations on the use of those tax assets.
By increasing the purchase price, the amendment makes the rights more dilutive and less attractive to potential acquirers, thereby protecting the NOLs from being forfeited. The change also preserves shareholder value by maintaining the company’s tax advantage, which is a key component of its long‑term financial strategy.
The amendment will be presented to shareholders at the 2026 annual meeting. If shareholders do not approve the amendment, it will automatically terminate on June 30 2026, at which point the rights plan would revert to its prior terms.
Bimini Capital is not currently covered by any equity analysts; a neutral rating from TipRanks’ AI Analyst reflects the company’s significant financial challenges and high leverage, but the rights plan amendment represents a proactive step to secure its tax position in the face of those challenges.
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