COBRA VENTURE ANNOUNCES ADOPTION OF SHAREHOLDER RIGHTS PLAN
July 25, 2010
Vancouver, British Columbia – Cobra Venture Corporation ("Cobra" or the "Corporation") (TSX Venture: CBV) announces that the shareholders of the Corporation have ratified Cobra’s Shareholder Rights Plan dated effective June 17, 2010 (the “Plan”) at the annual and special meeting of the shareholders of the Corporation which was held on July 15, 2010.
The Plan is designed to ensure the fair treatment of shareholders in connection with any take-over bid for outstanding common shares of Cobra. The Plan seeks to provide shareholders with adequate time to properly assess a take-over bid without undue pressure. It also provides the Board of Directors with adequate time to fully assess an unsolicited take-over bid, to allow competing bids to emerge, and, if applicable, to explore other alternatives to the take-over bid to maximize shareholder value.
The Plan is not intended to prevent or deter take-over bids that treat shareholders fairly. Under the Plan, those bids that meet certain requirements intended to protect the interests of all shareholders are deemed to be “Permitted Bids”. Permitted Bids must be made by way of a take-over bid circular prepared in compliance with applicable securities laws and, among other conditions, must remain open for 60 days.
Under the terms of the Plan, one right will be issued by Cobra for each outstanding Cobra common share at the close of business on June 17, 2010, and for each Cobra common share issued in future (subject to the terms of the Plan). In the event a take over bid does not meet the Permitted Bid Requirements of the Plan, the rights will entitle shareholders, other than any shareholder or shareholders making the take-over bid, to purchase additional common shares of the Corporation at a substantial discount to the market price of the common share at that time. The Plan has an initial term of three years.
Cobra is not adopting a Plan in response to any proposal to acquire control of the Corporation. The Plan is similar to plans adopted by other Canadian companies and ratified by their shareholders. Although effective as of June 17, 2010, the Plan is subject to approval by the TSX Venture Exchange.
About Cobra Venture Corporation
Cobra is an oil and natural gas production and exploration corporation currently producing, exploring and developing properties in Alberta, British Columbia, and Saskatchewan. Cobra is actively involved in prospect generation and secures working interests at an early stage. Through farm out and royalty agreements, the corporation joint ventures its prospects but retains key ownership positions in multiple projects. Cobra employs this strategy to minimize shareholder dilution and maximize shareholder asset value.