TORONTO, March 3 /CNW/ - AlarmForce Industries Inc. (TSX: AF.TO) announces today that the Board of Directors of the Company has approved the adoption of a shareholder rights plan, effective March 3, 2010. The purpose of the shareholder rights plan is to ensure, to the extent possible, that all shareholders of the Corporation are treated equally and fairly in connection with any initiative to acquire control of the Corporation.
The purpose of the rights plan is to encourage a potential bidder to make a "Permitted Bid", having terms and conditions designed to meet the objectives of the rights plan, or to negotiate the terms of an offer with the Board of Directors of the Company. A Permitted Bid is a take-over bid that is made to all holders of voting shares of the Company (other than the bidder) for all of the voting shares held by them, by way of a take-over bid circular prepared in compliance with applicable securities laws, that remains open for acceptance by shareholders of the Company for 60 days, and that satisfies certain other conditions.
The Company is not aware of any specific take-over bid for the company that has been made or is contemplated. The rights plan is not intended to and will not prevent a take-over of the company.
The rights plan must be confirmed by shareholders within six months of its effective date. The Company currently plans to seek shareholder approval of the rights plan at its annual and special meeting, expected to be held on April 14, 2010. The listing of the rights is subject to acceptance by the Toronto Stock Exchange.
A complete copy of the rights plan is available upon request. Shareholders wishing to receive a copy of the rights plan should make their request by telephone at (416) 445-2001, by facsimile at (416) 445-9381, by email at email@example.com or by mail to AlarmForce Industries Inc., 675 Garyray Drive, Toronto, Ontario M9L 1R2, Attention: Ms. Margaret Brady. A copy of the rights plan will be filed on SEDAR at www.sedar.com.
SOURCE AlarmForce Industries Inc.
For further information: For further information: Investors Relations Department, Tel: (416) 445-2001 ext No. 225, Fax: (416) 445-9381, E-mail: firstname.lastname@example.org