Argex Titanium Inc. ARGEF

RE:RE:RE:Argex announces AGM results

[Sunnybrook25]

Shareholders Rights Plan (so-called as Poison Pills) works in favor of board of directors. Basically it prevents from hostile takeover by Luxor Capital, which holds a total of 22.7 million shares, by way of share dilution. Simply, it lets management keeps their jobs along with their significantly poor performance. The bottome line is that It is a good news for our shareholders.

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To avoid being the target of ahostile takeoverby a larger firm, a corporate board might adopt a defensive strategy called a shareholder rights plan. Such plans allow existing shareholders the right to purchase additional shares at a discount, effectively diluting the ownership interest of any new, hostile party. Most plans are triggered whenever one individual or entity obtains a certain percentage of total ownership, leading to the nickname "poison pill." /www.investopedia.com/articles/analyst/03/111903.asp?rp=i" style="cursor:pointer" rel="noindex nofollow" target="_blank">board of directors, but shareholders benefit as well when the takeover might damage the stock's long-term value. /www.investopedia.com/articles/financial-theory/11/how-venture-capitalists-make-investment-choices.asp?rp=i" style="cursor:pointer" rel="noindex nofollow" target="_blank">venture capitalistsmight be able to buy the firm and improve its value with a better managing staff.