VANCOUVER, BRITISH COLUMBIA--(Marketwired - March 17, 2014) - Coast Wholesale Appliances Inc. (TSX:CWA) ("Coast") announced today, as required by the policies of the Toronto Stock Exchange (the "TSX"), the TSX has notified Coast it will defer consideration of the acceptance of Coast's shareholder rights plan dated March 4, 2014 (the "Rights Plan") until such time as the TSX is satisfied the British Columbia Securities Commission will not intervene pursuant to National Policy 62-202 Take-Over Bids - Defensive Tactics in any take-over bid for Coast. The deferral of acceptance of the Rights Plan by the TSX is consistent with its practice when a shareholder rights plan is adopted in response to a specific take-over bid.
Coast adopted the Rights Plan in response to the hostile take-over bid commenced by CWAL Investments Ltd. ("CWAL") in March 2014, to acquire all of the outstanding common shares of Coast that it does not already own. The Rights Plan was adopted to allow sufficient time to seek alternative proposals to CWAL's take-over bid in order to enhance shareholder value and to ensure that all of Coast's shareholders are treated fairly in any resulting transaction. Coast intends to submit the Rights Plan for approval by shareholders at its annual meeting to be held in June 2014.
Even though the TSX has deferred its review of the Rights Plan, the Rights Plan remains in effect. A copy of the Rights Plan is available on SEDAR at www.sedar.com.
Forward-Looking Statements and Information
This news release contains forward-looking information and forward-looking statements within the meaning of applicable securities laws. All statements other than statements of historical fact may be forward-looking statements. In this news release, such forward-looking statements include statements regarding the TSX's consideration and acceptance of the Rights Plan and Coast's intention to submit the Rights Plan for approval by shareholders at its next annual meeting. These forward-looking statements are based on a number of assumptions, including assumptions regarding the Rights Plan remaining in effect and the board of directors of Coast receiving adequate time to identify, develop and negotiate value-enhancing alternatives to CWAL's hostile take-over bid. Although management of Coast believes that the assumptions made and the expectations represented by such statements are reasonable, there can be no assurance that such statements will prove to be accurate. Actual results and developments may differ materially from those expressed or implied by the forward-looking statements contained in this news release and even if such actual results and developments are realized or substantially realized, there can be no assurance that they will have the expected consequences or effects. You should not place undue reliance on any forward-looking statements contained in this news release. Coast specifically disclaims any obligation to reissue or update these forward-looking statements as a result of new information or events after the date hereof, except as may be required by law.
Coast is a leading independent supplier of major household appliances and accessories to developers and builders of multi-family and single-family housing, and to retail customers. Coast currently operates 15 stores, with 14 locations across the four western provinces and one store in the Greater Toronto Area.