Gold Royalty adopts shareholder right plan

Gold Royalty (GROY) announced that its board of directors, on the recommendation of a recently formed special committee of its independent directors, has adopted a shareholder rights plan effective immediately. After reviewing recent trading volumes and activity, the board adopted the plan to help ensure that all shareholders of the company are treated equally and fairly in the event of any unsolicited take-over bid or other attempt to acquire control of the company. In respect of such transactions, the plan is intended to, among other things: encourage potential bidders to treat Gold Royalty shareholders fairly and equally and preserve control premiums and value for shareholders and provide the board and shareholders adequate time to appropriately respond on an informed basis, and protect applicable legal rights. The plan was not adopted in response to any specific take-over bid or other proposal to acquire control of the company, and the company is not aware of any such pending or contemplated take-over bid or other proposal. Pursuant to the plan, one right will be issued in respect of each outstanding Gold Royalty common share on the record date, being November 17 and thereafter, one right will automatically attach to each new common share issued by Gold Royalty. Each right will become exercisable if a person acquires beneficial ownership of 15% or more of the outstanding common shares without complying with the permitted bid provisions of the plan. In such circumstances, each right will entitle the holder to purchase additional Gold Royalty common shares at a discount to the then prevailing market price. The plan includes a mechanism that applies a higher 20% threshold to any entity that, together with its affiliates and joint actors, is not party to any standstill or similar arrangement with the company.