I have read this a number of times since I posted it here last week. It seems poorly defined. For example:

- when would the rights expire?

- are these rights "durable" and extend to shares in the take over company if it was an all stock deal?

- where would the stocks come from if a lot of share holders decided to exercise them?

- doesn't it appeal more to unscrupulous potential take over entities... one's that would manipulate the stock price to make sure that the (new) stock never reached the trigger price of twice the exercise price. I've seen enough manipulation to know that the crooks can paint the share price to any level they wish and hold it there for an indefinite amount of time.

- what good is the plan if the BoD can simply waive the whole rights plan without shareholder approval. "The provisions of the Rights Plan which apply upon the occurrence of a Flip-in Event may be waived at the option of the Board of Directors and without the prior approval of the holders of Common Shares or Rights in certain circumstances prior to the occurrence of a Flip-in Event."

- Now that there are bou coup shorted shares (legal and naked) what happens to the two owners of the shares (borrowed and bought)? ..to the owners of shares that were bought as a result of naked shorting?

- wouldn't it be prudent to declair a miniscule divident to try and clear the shorted shares before implementing this plan?

I am not criticizing the BoD, but wondering about the details and net effect of the rights plan. I am sure that they are creating the plan in an effort to provide protection to existing shareholders and to support the share price. I would like to see examples where the benefit to shareholders were demonstrated and the assumptions that were made for the examples. I have been trained to look for the unexpected consequences and failure modes of systems and it looks as if this plan needs that kind of analysis.