Peregrine Diamonds Ltd. PGDIF

Securities question

[northmark]

In Kaisers latest comment he touches on the fact that the Friedlands have'nt taken advantage of cheap shares on the open market due to "running afoul of takeover related securities regulations".
Any truth to these restrictions?

[ekim]

Poison pill rules. It is a thing.ekim

[mill44]

Poison pills are adopted by companies to defend themselves against hostile takeovers, no?

[Fivecarat]

Dont get the poison pill connection with the initial,question?

[mill44]

https://www.mergersandacquisitionsincanada.com/legal-guide-0/overview-of-canadian-securities-legislation-1/takeover-bids-100 The best that I found about takeovers. I don't see a problem buying shares on the market if they have no intention of a takeover, but that does not mean there are none.

[ekim]

It is all blended up together. There is a reason why you see companies like Agnico Eagle and Goldcorp and others buy exactly 19.9% interest in Company X. Whether it is the regulators or poison pills, etc. there is a very legal line at 20% that brings on a heep of rules. Both Eric and Robert have over 20% because of the rights offering and warrants..but mainly the standby agreement..which is

[mill44]

Like I said, if they have no other intention but to hold the shares, they have no problems.

[jamesbay]

the way I understand the situation, a person/company can hold up to 19%....but if they go over that mark, they have to declare  hostile takeover intent....

[Fivecarat]

Ah, I don't think they have to state they are intending to partake in a takeover just because they are over 20%, just if indeed that is their intent, correct?  Otherwise everyone who does go over that amount would be automatically labeled with that intent right or wrongly.

[jamesbay]

Overview Of Canadian Securitie... Introduction Overview of Canadian Securities Legislation Take−Over Bids Plan of Arrangement Conclusion Tax Considerations − General Overview Of Canadian Income Tax Principles Competition Act − Merger Notification And Review Foreign Investment Notification And Approval Under The Investment Canada Act Labour

[mill44]

I think they definitely have to declare an intent. But if they say they have no intention of takeover, that might be binding, at least for a while.

[northmark]

Didn't have a chance to thank you for your responses yesterday so thanks.