TSXV:AZC.P - Post by User
Post by
deismanon Sep 26, 2013 1:59pm
143 Views
Post# 21770410
Shareholders Rights Plan
Shareholders Rights Plan
I just received notice of a special meeting to ratify a Shareholder rights plan for Augusta. I looked it over and am a bit confused by the exercise price " each Right may be exercised to purchase one common share at an exercise price per Right of $15.00 " My understanding of a "poison pill" is that it should give shareholderes a right to buy more shares at a discount. $15.00 hardly seems like a discount. Also a SRP is sometimes not a good thing as it gives directors the power to deter takeovers and puts directors in a position to enrich themselves, as they may effectively ask to be compensated for the price of consenting to a takeover.
I'm probably missing something. Could someone who reads "lawyerspeak" review the circular and give the rest of us a simple explanation of this SRP?