Grey Horse Corporation

Grey Horse Corporation

April 24, 2009 15:27 ET

Grey Horse Announces Adoption of Shareholder Rights Plan

TORONTO, ONTARIO--(Marketwire - April 24, 2009) - Grey Horse Corporation (TSX:GHC) ("Grey Horse" or "the Corporation"), a Canadian financial services company serving the corporate and institutional market, today announced the adoption by its Board of Directors of a Shareholder Rights Plan (the "Plan"). The Plan is effective immediately, and will be submitted for ratification by Grey Horse's shareholders at the shareholders meeting to be held May 28, 2009. If the Plan is not ratified by shareholders at the meeting, it and all of the rights outstanding at the time will terminate.

The purpose of the Plan is to provide the Grey Horse Board of Directors with sufficient time to explore and develop alternatives for maximizing shareholder value if a take-over bid is made for the Company and to ensure every shareholder has an equal opportunity to participate in such a bid. The Plan is not intended to deter take-over proposals.

Shareholder Rights Plans have developed over the past twenty years to achieve the above purpose. In the event of certain take-over bids, the Plan results in the issue to shareholders, other than the bidder, of rights to subscribe for significant numbers of shares at a discounted price. That in turn results in an increase in the corporation's issued and outstanding shares and a corresponding increase in the cost of making a takeover bid. However, the rights issue is not the primary intent of the Plan. Rather, the rights issue is the mechanism that encourages potential bidders to structure potential take-over bids in order to comply with the Plan. A bid that complies with the plan has two major features:

1. To provide directors and shareholders with more time to assess the bid and, if considered advisable, to solicit a better offer, the bid must remain open for forty-five (45) days, instead of the minimum thirty-five (35) days required by securities laws.

2. To ensure that all shareholders can participate equally in the bid, it must contain a provision that, if more than fifty percent (50%) of the shares have been tendered, the bidder will make a public announcement of that fact on the expiry date of the bid and extend the bid for another ten (10) days to give all shareholders a chance to accept the offer.

Grey Horse is not aware of any take-over bid for the Company. The Plan has been adopted at this time because the Board of Directors considers it to be a prudent measure to maximize shareholder value in the current economic climate.

The Toronto Stock Exchange has accepted Grey Horse's notice of filing of the Plan. The Plan will be filed today and will be available for viewing on SEDAR at and on the Corporation's website at

About Grey Horse

Through its wholly owned subsidiaries, Grey Horse provides transfer agent, corporate trust, corporate secretary, foreign exchange and limited market dealer services to corporations in North American capital markets. Learn more at

Certain information included in press releases may be forward-looking and involve risks and uncertainties. The results or events predicted in such statements may differ materially from actual results or events. Factors that might cause a difference include, but are not limited to, competitive developments, risks associated with Grey Horse's growth, the state of the financial markets, frequency of large volume transactions, regulatory risks and other factors. If and when forward-looking information is set out in this press release, Grey Horse will also set out the material risk factors or assumptions used to develop the forward-looking information. Forward-looking information will be updated as required pursuant to the requirements of National Instrument 51-102. More detailed information about potential factors that could affect Grey Horse's financial and business results is included in public documents Grey Horse files from time to time with Canadian securities regulatory authorities.

The Toronto Stock Exchange has neither approved nor disapproved the contents of this press release.

Contact Information

  • Grey Horse Corporation
    Kevin Reed
    (416) 361-0930
    Grey Horse Corporation
    Paul G. Smith
    President & CEO
    (416) 361-0930