Business
Norsemont adopts Shareholder Rights Plan
Norsemont adopts Shareholder Rights Plan.
About this update from Norsemont Mining Inc.
[{"type":"text","content":"\n\n\n\n\nVANCOUVER, May 29 /CNW/ - Norsemont Mining Inc. (\"Norsemont\" or \"the\nCompany\") (TSX-V: NOM; Frankfurt: N8S; WKN: A0DQKK; OTC-BB: NOMFF;\nISIN: CA 6565291045) is pleased to announce that, effective immediately, its\nBoard of Directors has adopted a Shareholder Rights Plan, subject to\nregulatory approval and shareholder ratification at the Company's next annual\ngeneral meeting. The Company is currently not aware of any pending or\nthreatened takeover bid for the Company.\nCurrent Canadian legislation permits a hostile bid to be made in as\nlittle as 35 days, giving the Board of Directors little time to implement\nstrategies to enhance shareholder value or for competing bids to be made. The\nPlan as proposed extends this time to 60 days.\nThe objective of the Board of Directors in adopting this Plan is to\nachieve full and fair value for the Company's shareholders in the event of an\nunsolicited take-over bid for the Company. Anyone seeking to obtain control of\nthe Company will be encouraged to negotiate with the Board of Directors prior\nto attempting a take-over, or to proceed by way of a \"Permitted Bid\".\nUnder the Plan, the Company will issue one Right for no consideration in\nrespect of each outstanding common share of the Company to all holders of\nrecord of common shares. The Rights will be attached to the common shares and\ncannot be exercised until after a flip-in event has taken place. A flip-in\nevent is one of the following: (i) an Acquiring Person, as defined in the\nPlan, acquires 20% or more of the common shares of the Company; or (ii) an\nAcquiring Person announces his intention to make a take-over bid that would\nresult in the person owning 20% or more of the outstanding common shares of\nthe Company.\nUpon such a flip-in event occurring, each Right would separate from the\ncommon share and thereafter entitle the holder to purchase common shares at a\n50% discount to the market price.\nThe Rights will not be separated from the shares if the Acquiring Person\nmakes a Permitted Bid, as defined in the Plan, pursuant to a take-over bid\ncircular sent to all shareholders of the Company, which has a minimum deposit\nperiod of at least 60 days and pursuant to which not less than 50% of the\ncommon shares, other than those held by the Acquiring Person, are deposited\nand not withdrawn. The Permitted Bid...