Purepoint Uranium Group Inc: Announces Adoption of Shareholder Rights Plan
May 15 2009 - 8:30AM
Marketwired
Purepoint Uranium Group Inc. (TSX VENTURE: PTU), today announced
that its board of directors has approved the adoption of a
shareholder rights plan (Rights Plan), effective immediately,
subject to acceptance by the TSX Venture Exchange.
The Rights Plan is designed to encourage the fair treatment of
Purepoint's shareholders should a take-over bid be made for
Purepoint by providing the board and the shareholders with more
time to evaluate any unsolicited take-over bid and, if appropriate,
to pursue alternatives to maximize shareholder value. The Rights
Plan has not been adopted in response to any specific proposal to
acquire control of Purepoint, and Purepoint is not aware of any
such proposal.
The Rights Plan is effective immediately but it must be ratified
by shareholders of Purepoint within six months. Shareholders will
be asked to ratify and approve the Rights Plan at the annual and
special meeting of shareholders of Purepoint to be held on June 11,
2009. If ratified, the Rights Plan will remain in effect until the
close of business on the date of termination of the annual meeting
of shareholders in 2012, subject to earlier termination or
expiration of the Rights Plan in accordance with its terms. The
Rights Plan must be ratified by a majority of the votes cast at the
meeting by independent shareholders. If the Rights Plan is not
ratified at the meeting, all rights issued pursuant to the Rights
Plan and the Rights Plan will terminate and be null and void and of
no further force and effect.
The Rights Plan is similar to rights plans adopted by other
Canadian corporations. Subject to the terms of the Rights Plan, the
rights issuable under the Rights Plan will become exercisable in
the event any person, together with persons related to it, acquires
or announces its intention to acquire 20% or more of Purepoint's
outstanding shares without complying with the "Permitted Bid"
provisions of the Rights Plan or without approval of the Board. In
that event Rights holders (other than the acquiring person and
related persons) are entitled to purchase shares of Purepoint at
one-half the prevailing market price at the time the rights become
exercisable.
The Rights Plan is not intended to prevent take-over bids. Under
the Rights Plan, a bid that, among other things, is made to all
shareholders on identical terms and conditions and that is open for
at least 60 days may constitute a "Permitted Bid".
The Rights Plan is available at www.sedar.com or on request from
Purepoint.
About Purepoint
Purepoint Uranium Group Inc. is focused on the precision
exploration of more than 55 defined target areas on its nine 100%
owned projects in the Canadian Athabasca Basin, and its two Basin
projects joint ventured with Cameco Corporation and AREVA Resources
Canada Inc. Established in the Basin well before the resurgence in
uranium, Purepoint is actively advancing this large portfolio of
multiple drill targets in the world's richest uranium region.
THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT
RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
Contacts: Purepoint Uranium Group Inc. Chris Frostad President
and CEO (416) 603-8368 www.purepoint.ca
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