The Conversation (0)
The Board of Directors of Fancamp Exploration Ltd. (TSXV:FNC) has approved and adopted a new Shareholders Rights Plan entitling shareholders to severable rights to purchase additional shares of the Company upon the occurrence of a take-over bid (i.e., an offer to purchase 20% or more of the issued shares, when aggregated with the offeror’s shareholdings), which fails to meet certain conditions.
As quoted in the press release:
Bids which meet these conditions (“Permitted Bids”) do not trigger the rights to purchase additional shares. Permitted Bids are offers which meet all of the following conditions:
- The offer is made to all shareholders and includes shares issuable upon exercise of share purchase warrants, stock options and other convertible securities;
- The offer must contain an irrevocable and unqualified provision that no shares will be taken up or paid for prior to the close of business on a date less than 60 days following the date of the Bid, and only if at such date more than 50% of the shares held by independent shareholders have been deposited or tendered and not withdrawn;
- The offer must contain an irrevocable and unqualified provision that any share deposited may be withdrawn at any time until being taken up and paid for; and
- The offer must contain an irrevocable and unqualified provision that if the deposit conditions set out in item 2 above are met, then the offeror will make a public announcement of that fact, and the bid will remain open for deposits or tenders of additional shares for not less than 10 business days from the date of the public announcement.
- The Plan is designed to ensure that all shareholders are treated fairly and equitably in the event of a take-over bid. The Plan was not adopted in response to any actual or threatened takeover bid or other proposal from a third-party to acquire control of the Company.
Click here to read the Fancamp Exploration Ltd. (TSXV:FNC) press release
Click here to see the Fancamp Exploration Ltd. (TSXV:FNC) profile.