Avalon Advanced Materials Adopts Shareholder Rights Plan | AVLNF Stock News

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Apr 09, 2025
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  • Avalon Advanced Materials (TSX: AVL, OTCQB: AVLNF) has adopted a shareholder rights plan effective April 8, 2025.
  • The plan protects against unsolicited take-over bids and 'creeping bids' that may accumulate over 20% of shares.
  • Shareholder ratification of the rights plan is required within six months, following conditional approval by the Toronto Stock Exchange.

Avalon Advanced Materials Inc. (TSX: AVL, OTCQB: AVLNF) has announced the implementation of a shareholder rights plan starting April 8, 2025. This initiative, approved by the company's Board of Directors, aims to ensure fair treatment of shareholders amidst unsolicited take-over attempts and prevent 'creeping bids'—strategies involving the accumulation of more than 20% of company shares through exemptions from standard takeover rules.

The newly adopted rights plan will issue one right for every common share. Should these rights become exercisable, shareholders who are not involved in the acquisition can purchase additional shares at a significant 50% discount from the current market price. This decision aligns with strategies employed by other Canadian companies to protect stakeholder interests.

The plan has received conditional approval from the Toronto Stock Exchange and remains subject to ratification by Avalon's shareholders. The ratification vote is to occur within six months from the effective date of the plan. Failure to ratify will result in the termination of the plan along with any outstanding rights.

Avalon Advanced Materials is a critical minerals company working to integrate Ontario's lithium supply chain. It is advancing projects in lithium, rare earths, and zirconium while developing a lithium hydroxide processing facility in Thunder Bay, Ontario.

Disclosures

I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.