Poison Pill While it’s always intriguing to see companies adopting Shareholder Rights Plans (Poison Pills), history has shown that many / most(?) Poison Pills when challenged with the provincial regulators / in courts, tend to get defeated.
Good article on updated version of Shareholder Rights Plans:
https://www.dlapiper.com/en/canada/insights/publications/2016/03/csa-adopt-changes-to-takeover-bid-regime/ General info on Shareholder Rights Plans (somewhat dated):
https://en.wikipedia.org/wiki/Shareholder_rights_plan PS: ENW announcing the poison pill on the same day as the Bonduelle development adds to the intrigue as it seems to suggests a connection between the two events. If it was intentional, it’s not a very smart move imho as the Poison Pill doesn’t come into effect until approved by shareholders during the next AGM which won’t take place until March of next year.
I personally don’t believe that the two events are connected as I can’t see Bonduelle being a global player with large US interests having any intention of getting involved (at this stage) in the still “volatile” cannabis industry.
That said, at the current valuation of just under $200 Mil and with a P/S ratio of ~5, ENW could be a target.
PPS: I am right now a buyer of commons and warrants.