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Virgin Metals Inc. (TSXV:VGM) announced with immediate effect that its Board of Directors has approved the adoption of a shareholder rights plan subject to acceptance by the TSX Venture Exchange.
As quoted in the press release:
The Rights Plan provides the board and the shareholders with more time to evaluate any unsolicited take-over bid and, if appropriate, to pursue alternatives to maximize shareholder value. The Rights Plan has not been adopted in response to any specific proposal to acquire control of Virgin Metals, and Virgin Metals is not aware of any such proposal.
The Rights Plan is effective immediately but it must be ratified by shareholders of Virgin Metals within six months. Shareholders will be asked to ratify and approve the Rights Plan at the special meeting of shareholders of Virgin Metals to be held on-November 16, 2011. The Rights Plan must be ratified by a majority of the votes cast at the meeting by independent shareholders. If the Rights Plan is not ratified at the meeting, all rights issued pursuant to the Rights Plan and the Rights Plan will terminate and be null and void and of no further force and effect.
Virgin Metals’ President and CEO, Chris Frostad said:
“The Rights Plan is designed to encourage the fair treatment of all shareholders should a take-over bid be made for Virgin Metals.” “In light of current market conditions and the company’s recent property acquisition our Board of Directors feels that such a plan is prudent”.
Click here to read Virgin Metals (TSXV:VGM) press release.
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