Garson Gold Adopts Takeover Defense

Garson Gold, Inc. announced that it has adopted a shareholder-rights provision, "similar to those of other Canadian public companies." Under its operation, any takeover bid that does not fall into the category of a "Permitted Bid" may trigger the separation of rights from the shares held on the close of business on March 9th. A "takeover bid," a term unused in the news release, means the acquisition of 20% or more of Garson shares. The rights separate at the option of the Board of Directors, once the 20% threshold is crossed; the Board can permit the exercise price of the rights to be a discount from market value. The announcement notes that there are fairness tests to be used when determining whether or not a bid is to be Permitted, and that this takeover-defense plan was not adopted because of takeover fears.

This item was released after the market closed, so it has not had an effect on the stock. Garson did not trade at all today.

Garson Gold Ltd.'s Google Finance web page is here.

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