CLAR - Clarus says Caption Management's ownership of ~17% of co's stock violates rights agreement

• Clarus ( NASDAQ: CLAR ) on Tuesday said that the ownership of 17.1% of its common stock by investment management firm Caption Management violated a rights agreement.
• Salt Lake City, Utah-based Clarus owns several brands such as Black Diamond, which makes performance equipment and apparel for outdoor recreation activities; PIEPS, which makes avalanche safety equipment; and bullet manufacturers Sierra Bullets and Barnes Bullets.
• Caption Management along with a few other affiliated funds and its co-founders William Cooper and Jason Strasser disclosed a passive stake in Clarus last week.
• "Caption’s acquisition of in excess of 5% beneficial ownership in Clarus’ outstanding common stock without the approval of Clarus’ Board of Directors is a violation of its Rights Agreement dated February 7, 2008," CLAR said in a statement .
• CLAR added that its board will "pursue any and all remedies available against Caption, including, without limitation, taking action to trigger the remedies under the rights agreement which would result in material dilution in the economic value of Caption's ownership in Clarus' common stock."
• CLAR stock -1.9% to $15.22 in mid-day trading.

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