RE:Weds Anyone purchasing 20% of our shares would trigger our shareholders rights plan. That would be about 75 million shares by one entity. They will accumulate shares up to that amount and wait for the PFS before any permitted bid comes if any.
The Board approved the Rights Plan today and authorized the issue of one right in respect of each common share of the Company outstanding at 4:00 p.m. (Toronto time) today (the “Record Time”) and each common share issued thereafter. The rights will become exercisable if at any time following the Record Time a person, together with its affiliates, associates and joint actors, acquires beneficial ownership of common shares which, when aggregated with its holdings, total 20% or more of the outstanding common shares of the Company (determined in the manner set out in the Rights Plan). Following any such acquisition, each right held by a person other than the acquiring person and its affiliates and joint actors would, upon exercise, entitle the holder to purchase common shares at a substantial discount to the market price of the common shares at that time.
The Board has the discretion to defer the time at which the rights become exercisable, to waive the application of the Rights Plan and to amend the Rights Plan.
The Rights Plan permits the acquisition of control of the Company through a “permitted bid”, a “competing permitted bid” or a negotiated transaction. A permitted bid is one that, among other things, is made to all holders of common shares for all of their shares, is open for a minimum of 60 days and is subject to an irrevocable minimum tender condition of at least 50% of the common shares held by independent shareholders.
pasted from a 2014 news release