Anavex Life Sciences Corp (AVXL)

[bas2020]

Poison Pill in place...

"Officially known as a shareholder rights plan, a poison pill defense allows existing shareholders to buy newly issued stock at a discount if one shareholder has bought more than a stipulated percentage of the stock; the buyer who triggered the defense is excluded from the discount."
"Flip-In Poison Pill
"A type of poison pill strategy in which existing shareholders, but not acquiring shareholders, are allowed to purchase shares in the target company at a discount. A flip-in poison pill takeover defense dilutes the value of the shares purchased by the acquiring company by flooding the market with new shares, while also allowing investors who purchase the new shares to profit instantaneously from the difference between the discounted purchase price and the market price.
"Poison pill provisions are often found in a company's bylaws or charter as a public display of their potential use as a takeover defense. This tells any company thinking about a hostile takeover that they will face a lot of difficulties. Companies looking to fight this strategy may try to have a court dissolve any program providing the deep discount, but the chances of success are uncertain."
Also:
"In the United States, a common defense tactic against hostile takeovers is to use section 16 of the Clayton Act to seek an injunction, arguing that section 7 of the act would be violated if the offeror acquired the target's stock."