Stellar Biotechnologies Adopts Shareholder Rights Plan
PORT HUENEME, CA (December 20, 2011) -- Stellar Biotechnologies, Inc. (TSX-V: KLH) (U.S. OTC: SBOTF) (“Stellar” or the “Company”) is pleased to announce that it has adopted a shareholder rights plan (the “Rights Plan”) designed to encourage the fair treatment of its shareholders in the event of an unsolicited take-over bid for shares of the Company. The Rights Plan is designed to give the Company's shareholders sufficient time to properly assess a take-over bid without undue pressure and to give the Company's Board of Directors time to consider alternatives that allow the Company's shareholders to receive full and fair value for their common shares.
Pursuant to the Rights Plan, each holder of record of the outstanding common shares of the Company on December 13, 2011 will be issued one right per common share. The rights will trade with the common shares and be represented by the certificates representing common shares. Although the Rights Plan is effective immediately, it is subject to TSX Venture Exchange approval and must be ratified by the shareholders of the Company within six (6) months of its adoption. The Rights Plan will be submitted to the shareholders of the Company for ratification at the Annual General and Special Meeting of Shareholders to be held January 17, 2012.
A copy of the Rights Plan is posted on SEDAR.
The Rights Plan is similar to shareholder rights plans adopted by numerous other Canadian corporations. Neither the Board nor senior management of the Company is aware of any current, pending or threatened take-over bid for the Company.
On Behalf of the Board
Frank Oakes, Chairman
Stellar Biotechnologies, Inc. (TSX-V: KLH) (U.S. OTC: SBOTF) (www.StellarBiotechnologies.com) is the world leader in sustainable manufacture of pharmaceutical grade KLH (Keyhole Limpet Hemocyanin). KLH is an important immune stimulating protein that is ideal for use in human and animal vaccines and diagnostic products. Stellar KLH products are used in research and clinical markets, and represent the Company’s growing position as the only sustainable, long-term source for pharmaceutical KLH. Stellar Biotechnologies was founded to address the growing demand for renewable, commercial-scale supplies of high quality, GMP grade KLH.
There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Readers should not place undue reliance on such statements. Except in accordance with applicable securities laws, the Company expressly disclaims any obligation to update any forward-looking statements or forward-looking statements that are incorporated by reference herein. This news release does not constitute an offer to sell, or a solicitation of an offer to buy any of the Company's securities set out herein in the United States, or to, or for the benefit or account of, a U.S. Person or person in the United States. 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 these releases.