CALGARY, March 18 /CNW/ - Result Energy Inc. ("Result" or the "Corporation"; TSX-V: RTE) announces that, its Board of Directors has approved the adoption of a Shareholder Rights Plan (the "Plan"), subject to acceptance by the TSX Venture Exchange (the "TSXV"). The Plan, which is to be filed with the TSXV as soon as practicable, is designed to ensure the fair treatment of shareholders in the event of any take-over bid or any other attempt to acquire a controlling interest in the Corporation and to give the Corporation adequate time to identify alternative value enhancing transactions.
Result is not adopting the Plan in response to, or in anticipation of, any specific take-over bid for the outstanding shares of the Corporation. The Plan is similar to shareholder rights plans adopted by other Canadian corporations.
Under the terms of the Plan, one right ("Right") will be issued by Result in respect of each outstanding common share of the Corporation ("Common Share") to the shareholders of record on March 15, 2008, as well as one Right in respect of each Common Share subsequently issued by Result. The Rights issued under the Plan will only become exercisable when a person, including any party related to it, acquires or announces its intention to acquire 20% or more of the outstanding Common Shares of the Corporation without complying with the Plan's "permitted bid" provisions. "Permitted bids" must, among other requirements more fully described in the Plan, be made to all Result shareholders and must remain open for acceptance for a minimum of 60 days.
The Plan is subject to acceptance by the TSXV, and is subject to ratification by Result's shareholders at the Corporation's annual meeting of shareholders scheduled for May 27, 2008. If confirmed by the shareholders at that meeting, the Plan will need to be reconfirmed at Result's annual meeting in 2011.
The Plan will also be made available for viewing on the SEDAR website at www.sedar.com, once it has been filed with the TSXV.
Result Energy Inc. is a publicly traded Canadian energy company involved in the exploration and development of oil and gas properties in western Canada. Result trades on the TSX Venture Exchange under the symbol "RTE".
The TSX Venture Exchange does not accept responsibility for the adequacy
and accuracy of this release.