Aldebaran swallows poison pill

Executive Summary

• Aldebaran Resources Inc. has adopted a shareholder rights plan effective March 30, 2026, designed to protect shareholders from creeping takeover bids exceeding 20% ownership.
• The plan requires approval from the TSX Venture Exchange and ratification by shareholders within six months, with ratification scheduled for the 2026 annual meeting.
• If triggered, the plan allows existing shareholders (excluding the acquirer) to purchase additional common shares at a 50% discount to the prevailing market price.

Key Details

• Effective Date: March 30, 2026
• Rights Agent: Olympia Trust Company
• Trigger Threshold: 20% beneficial ownership of outstanding common shares (on an aggregate basis)
• Trigger Mechanism: Rights become exercisable if any person or related parties accumulate ≥20% without complying with permitted bid provisions under the plan
• Dilution/Discount Terms: Non-acquiring shareholders may exercise rights to purchase additional common shares at a 50% discount to the then-prevailing market price
• Approval Requirements: Requires TSX Venture Exchange approval and shareholder ratification within six months of adoption
• Ratification Timeline: Shareholder ratification will be sought at the 2026 annual meeting (date TBD in Q2 2026)
• Duration: Initially effective for three years following the date of initial shareholder ratification
• Termination Clause: If shareholder approval is not obtained within six months of adoption, the plan and all outstanding rights will automatically terminate
• Context: Plan is similar to those recently adopted by other Canadian companies and was not implemented in response to or anticipation of any pending or threatened takeover bid