VANCOUVER, BC, June 3, 2021 /CNW/ - HealthSpace Data Systems Ltd. (the "Company" or "HealthSpace") (CSE: HS) (Frankfurt: 38H) (OTC: HDSLF) announces that the Company has filed its management information circular in connection with a meeting of shareholders to be held on June 29, 2021.
Among other matters, shareholders will be asked to approve the most recent version of the Company's Shareholder Rights Plan (the "Rights Plan") readopted by the board of directors effective June 1, 2021. The Rights Plan has been adopted to ensure, to the extent possible, that all shareholders of the Company are treated fairly in connection with any take-over bid for the Company, and to protect against "creeping bids", which involve the accumulation of more than 20% of common shares in the capital of the Company (the "Common Shares") through purchases exempt from applicable take-over bid rules.
Pursuant to the Rights Plan, one right attaches to each issued and outstanding Common Share of HealthSpace. Subject to the terms of the Rights Plan, the rights become exercisable in the event that any person (together with its affiliates and associates and persons acting in concert with it) becomes a beneficial holder of 20% or more of the Company's outstanding Common Shares, without complying with the "Permitted Bid" provisions under the Rights Plan. In such event, holders of the rights (other than the acquiring person and its related parties) will be permitted to exercise their rights to purchase additional Common shares of the Company at a substantial discount to the then market price of the Company's Common shares.
While the Rights Plan is effective as of the date of adoption by the board of directors of the Company, being June 1, 2021, the Company has elected to make the Rights Plan subject to ratification by the Company's shareholders.
A summary of the principal terms of the Rights Plan is included in the management information circular ,to be sent to shareholders in connection with such meeting and a complete copy of the Rights Plan will be available under the Company's profile on SEDAR at www.sedar.com. If the Rights Plan is not approved by the shareholders, it, together with the outstanding rights, will terminate and cease to be effective. Shareholders are advised to disregard an earlier version of the management information circular filed on June 1, 2021, which was uploaded in error.