CCA Industries Issues Stockholder Protection Plan

The CCA Industries board has adopted a Stockholder Protection Rights Plan in response to the purchase by Sardar Biglari, Biglari Holdings Inc., Biglari Capital Corp., The Lion Fund, L.P. and Philip L. Cooley, as reported on their Schedule 13D with a report date of January 25, 2011, of 381,506 shares of common stock.


According to Ira W. Berman, CCA’s chairman, “The Rights Plan is intended to promote the fair and equal treatment of the company’s stockholders and deter any potential coercive takeover tactics that could be used to deprive stockholders of the full value of their investment. The board is committed to acting in the best interests of all its stockholders.”


With its acquisition, Sardar Biglari, Biglari Holdings Inc., Biglari Capital Corp., The Lion Fund, L.P. and Philip L. Cooley, now hold6.3% of CCA’s outstanding common stock, and “may acquire additional shares of the [Company’s] capital stock or dispose of shares, in the open market or otherwise, or may formulate other purposes, plans or proposals regarding the [Company] or its shares,” according to their Schedule 13D report.