Niocorp Developments Ltd. has recently announced the adoption of a limited-duration shareholder rights plan to protect and maximize value for shareholders. The plan was put in place to ensure equal treatment of all shareholders in the event of any unsolicited takeover bid or attempt to acquire control of the company. The plan will issue one right in respect of each outstanding common share of the company, with each right becoming exercisable if an acquiring person and related persons acquire beneficial ownership of 20% or more of the outstanding common shares without complying with the permitted bid provisions of the plan.
The plan has a term of six months and will expire on May 21, 2026, or earlier as described in the agreement governing the plan. The full text of the plan is available on the company’s profile on SEDAR+ at www.sedarplus.ca and on EDGAR at www.sec.gov. The issuance of the rights will not affect trading of the common shares, and no further action is required by shareholders.
This move aims to encourage potential bidders to treat the company’s shareholders fairly and equally and preserve control premiums and value for shareholders. It also provides the board and shareholders adequate time to respond appropriately on an informed basis, should such circumstances arise.
The announcement of this limited-duration shareholder rights plan comes as the company's latest move in its efforts to protect shareholder interests and maintain control over the acquisition of the company. Today the company's shares have moved -0.57% to a price of $5.185. For more information, read the company's full 8-K submission here.
