EFT Canada Inc.
TSX VENTURE : EFT

EFT Canada Inc.

October 24, 2014 14:05 ET

EFT Canada Approves Shareholder Rights Plan

TORONTO, ONTARIO--(Marketwired - Oct. 24, 2014) - EFT Canada Inc. ("EFT Canada" or the "Company") (TSX VENTURE:EFT) today announced that its Board of Directors (the "Board") has approved the adoption of a shareholder rights plan (the "Rights Plan"). The Rights Plan has been adopted to allow the Board of EFT Canada to respond appropriately to an unsolicited take-over bid.

EFT Canada is not adopting the Plan in response to any specific proposal to acquire control of its outstanding securities. The Plan will be similar to plans adopted by other Canadian companies.

Once adopted, in accordance with the terms of the Rights Plan, one right will be issued in respect of each common share of the Company outstanding and each common share issued thereafter. The rights will become exercisable following any transaction in which a person, together with its affiliates, associates and joint actors, acquires beneficial ownership of common shares of EFT Canada which, when aggregated with its holdings and the holdings of its affiliates, associates and joint actors, total 20% or more of the outstanding common shares of the Company (determined in the manner set out in the Rights Plan). Following the acquisition of 20% or more of the Company's outstanding common shares, each right held by a person other than the acquiring person and its affiliates, associates and joint actors would, upon exercise, entitle the holder to purchase common shares at a substantial discount to the market price of the common shares at that time. Rights held by a person, together with its affiliates, associates and joint actors whose actions trigger the Rights Plan would become void and not be exercisable. The Board has the discretion to defer the time at which the rights become exercisable and to waive the application of the Rights Plan.

The Board considers a 20% triggering threshold to be appropriate and is intended to ensure stability and protect the interests of all shareholders.

The Rights Plan will be required to be ratified by the shareholders of the Company within six- months of its adoption. If the Rights Plan is not ratified by the shareholders, the Rights Plan and any rights issued pursuant to it will terminate. If the Rights Plan is put to a vote and ratified, it will continue in effect until the third annual meeting of shareholders thereafter. The Rights Plan is subject to approval by the TSX Venture Exchange. A copy of the Rights Plan will be available on SEDAR at www.sedar.com.

EFT CANADA INC.

EFT Canada, founded in 2003, is a financial processing company that offers a complete solution to the collection and payment processing needs of small and medium sized business merchants, banks, credit unions, and other financial firms in Canada and the United States. The Company develops, maintains and delivers innovative electronic transaction processing technologies, such as customized electronic payment and collection processing solutions and gift and loyalty card services, by drawing on its operational and applications expertise. For more information, please visit www.eftcanada.com.

This press release contains forward-looking statements which reflect the Company's current expectations regarding future events. The forward-looking statements involve risks and uncertainties. Actual results could differ significantly from those projected herein. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • EFT Canada Inc.
    Jonathan Pasternak
    President
    (416) 781-0666
    jpasternak(at)eftcanada.com
    www.eftcanada.com