PoisonousWould this plan still be in place? https://www.miningnewsnorth.com/story/2021/05/28/in-depth/major-moves-on-northern-mine-projects/6826.html
In a move to protect itself and shareholders from an incremental buyout that does not reflect the value of the company and its assets, Victoria adopted a shareholder rights plan immediately following the move by Coeur.
Colloquially known as a poison pill, shareholder rights plans are a defensive maneuver to discourage an acquiring company from buying a majority share without negotiating directly with shareholders of the target company.
Victoria invoked what is known as a "flip-in poison pill," which allows shareholders, except for the acquirer, to purchase additional shares at a discount.
Victoria Gold Corp.
Weighing in at 1,001 ounces, this first bar of gold produced at Victoria's Eagle Mine was poured in September 2017.
Under this plan, if any person or group becomes a beneficial holder of 20% or more of the outstanding Victoria shares without complying with permitted bid provisions provided in the plan, the rest of the shareholders have the right to acquire additional shares at a 50% discount. The sudden surge in newly issued shares would make any attempted hostile takeover more expensive and difficult.
Victoria says it put this poison pill in its pocket to ensure shareholders are treated fairly if Coeur or any other company wants to make a takeover bid, as well as to protect against creeping bids that result in the accumulation of more than 20% of the company's shares.
While it remains to be seen whether Coeur and Victoria will come to terms on a buyout deal, the initial C$141.7 million investment is another sign of major interest in the vast mineral potential the Yukon and Northern BC have to offer