Major Precious Metals Adopts Shareholder Rights Plan
Major Precious Metals has announced the adoption of a Shareholder Rights Plan effective April 26, 2021, to protect shareholders during potential take-over bids. This Plan aims to ensure fair treatment of shareholders by allowing evaluation time for unsolicited offers. Each common share will be attached to a right, with provisions preventing dilution during Permitted Bids. The Plan will be subject to shareholder ratification within six months; failure to ratify will terminate the Plan. The company's aim is to maximize shareholder value amid any acquisition attempts.
- Creation of a Shareholder Rights Plan to protect shareholder interests during potential take-over bids.
- The Plan allows time for evaluation of unsolicited offers and consideration of alternatives to maximize shareholder value.
- The effectiveness of the Plan is contingent on ratification by shareholders within six months, creating uncertainty.
- Non-ratification will lead to the termination of the Plan and the rights attached to shares.
VANCOUVER, British Columbia, April 27, 2021 (GLOBE NEWSWIRE) -- Major Precious Metals Corp. (“Major Precious Metals” or the “Company”) (CSE:SIZE | OTC:SIZYF | FRANKFURT:3EZ) announces that it has entered into a Shareholder Rights Plan (the "Plan") with National Securities Administrators Ltd., as the rights agent. The Plan is effective as of April 26, 2021.
The Plan has been adopted to ensure that the Company's shareholders are treated fairly in the event of a take-over bid for the Company's common shares and that the Company's Board of Directors and shareholders will have adequate time to evaluate any unsolicited take-over bid and, if appropriate, to evaluate and pursue other alternatives to maximize shareholder value. The Plan was not adopted in response to any actual or threatened take-over bid or other proposal from a third party to acquire control of the Company.
Pursuant to the Plan, one right (a "Right") will be issued and attached to each common share of the Company outstanding as at April 26, 2021 (the "Effective Date"). A Right will also attach to each common share of the Company issued after the Effective Date. The Plan is similar to shareholder rights plans recently adopted by several other Canadian companies. The Plan is not intended to block take-over bids. The Plan includes "Permitted Bid" provisions which will prevent the dilutive effects of the Plan from operating if a take-over bid is made by way of a take-over bid circular that, among other things, remains open for a minimum of 60 days and is accepted by a specified proportion of the common shares held by independent shareholders. The Plan will be triggered by an acquisition, other than pursuant to a Permitted Bid, of
While the Plan is effective immediately, the Company has elected to make the Plan subject to ratification by the Company's shareholders. The Company will be seeking shareholder ratification of the Plan within six (6) months from the adoption date. A summary of the principal terms of the Plan will be included in the management information circular to be sent to shareholders in connection with such meeting and a complete copy of the Plan will be available under the Company's profile on SEDAR at www.sedar.com. If the Plan is not approved by the shareholders, it, together with the outstanding rights, will terminate and cease to be effective.
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On behalf of the Board of Directors
MAJOR PRECIOUS METALS CORP.
Paul Ténière, M.Sc., P.Geo.
President and CEO
Suite 810 - 789 West Pender Street
Vancouver, BC V6C 1H2
Ph: (604) 687-2038
pteniere@majorprecious.com
About Major Precious Metals Corp.
Major Precious Metals is a Canadian junior mining and exploration company based in Vancouver, BC that owns a diversified portfolio of exploration properties within some of the most promising precious and base metal deposits worldwide. Major Precious Metals is also engaged in the business of acquiring and exploring precious metal projects near or adjacent to existing mining operations controlled by well-established mining companies.
Major Precious Metals is listed on the Canadian Securities Exchange (“CSE”) and its common shares trade under the ticker symbol "SIZE." Additional information relating to Major Precious Metals is available at www.majorprecious.com and SEDAR at www.sedar.com.
The Canadian Securities Exchange has neither approved nor disapproved the contents of this news release.
Forward-looking Information Statement
This news release may contain certain “forward-looking statements” and “forward-looking information” within the meaning of applicable Canadian and United States securities laws. When used in this news release, the words “anticipate”, “believe”, “estimate”, “expect”, “target", “plan”, “forecast”, “may”, “schedule” and other similar words or expressions identify forward-looking statements or information. These forward-looking statements or information may relate to the development of a mineral resource estimate for the Skaergaard Project, and other factors or information. Such statements represent the Company’s current views with respect to future events and are necessarily based upon a number of assumptions and estimates that, while considered reasonable by the Company, are inherently subject to significant business, economic, competitive, political and social risks, contingencies and uncertainties. Many factors, both known and unknown, could cause results, performance or achievements to be materially different from the results, performance or achievements that are or may be expressed or implied by such forward-looking statements. The Company does not intend, and does not assume any obligation, to update these forward-looking statements or information to reflect changes in assumptions or changes in circumstances or any other events affections such statements and information other than as required by applicable laws, rules and regulations.
FAQ
What is the purpose of the Shareholder Rights Plan adopted by Major Precious Metals (SIZYF)?
When was the Shareholder Rights Plan effective for Major Precious Metals (SIZYF)?
What happens if shareholders do not ratify the Shareholder Rights Plan for Major Precious Metals (SIZYF)?
How does the Shareholder Rights Plan protect against dilution during take-over bids for Major Precious Metals (SIZYF)?
