DELTA, BRITISH COLUMBIA--(Marketwire - Sept. 5, 2012) - WestBond Enterprises Corporation (TSX VENTURE:WBE) ("WestBond") is pleased to announce that at its annual general meeting yesterday, September 4, 2012, its independent shareholders reconfirmed the adoption of its Shareholder Rights Plan (the "Rights Plan") originally approved by its shareholders on August 26, 2009. The Rights Plan is designed to protect the Company's shareholders from unfair, abusive or coercive take-over strategies, including the acquisition of control of the Company through a take-over bid that does not treat all shareholders equally or fairly. In accordance with the terms of the Rights Plan, the Rights Plan must be reconfirmed by a resolution passed by a majority of the votes cast by the Independent Shareholders (within the meaning of the Rights Plan) present or represented by proxy at every third annual meeting of the shareholders of the Company.
The Company is not aware of any pending or threatened take-over bid for the Company.
Under the Rights Plan, share purchase rights (the "Rights") are issued to holders of shares at the rate of one Right for each share of the Company outstanding. The Rights Plan is similar to plans adopted by several other Canadian companies and approved by their shareholders. Initially, the Rights attach to and trade with the common shares and are represented by certificates representing common shares.
On the occurrence of certain triggering events, including the acquisition by a person or group of persons of 20% or more of the votes attached to all outstanding voting shares of the Company in a take-over bid that fails to meet certain conditions, the Rights separate from the common shares and will entitle holders (other than the acquiring person or group of persons) to acquire shares of the Company at a 50% discount to the prevailing market price of the shares.
The Rights are not triggered by purchases of voting shares made pursuant to a "Permitted Bid" made to all holders of common shares on identical terms. A Permitted Bid must be made by way of a take-over bid circular prepared in compliance with applicable securities laws and must comply with certain other conditions set out in the agreement signed to implement the Rights Plan.
WestBond is a producer of high quality disposable paper products marketed through medical and industrial distributors and operates a manufacturing facility in Delta, British Columbia, Canada.
WestBond is listed on the TSX Venture Exchange and trades under the symbol "WBE"
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accept responsibility for the adequacy or accuracy of this news release.