Jurek

When I researched this issue in SEC filings I found that a poison pen provision was passed at one of their stock holder meetings. It appeared from the filing that when one entity accumulates a certain percentage of outstanding shares or if they make a bid for this percentage of shares the company has the right then to execute the poison pen provision if they think its necessary to protect shareholders interest. This provision in my understanding allows the company to give existing shareholders the right to purchase 1/2 share for each share owned at the closing stock price prior to the hostile bid. For instance if now company X met this criteria and offered to purchase shares at $2.00, each shareholder would have the right to purchase half the number of shares they now own at the closing price yesterday of $1.27. The buyer could still go ahead with his hostile takeover but at a price at least 50% higher than his offer.

Martin

Martin