Grifco Inc (GFCI)

[cyofish]

Can the "poision pill" in item #6 explain the share price and why share count is a guarded secret by the management?

The Wacky World of M&As
January 28, 2005 | By Investopedia Staff, (Investopedia.com)
Poison Pill
With this strategy, the target company aims at making its own stock less attractive to the acquirer. There are two types of poison pills. The 'flip-in' poison pill allows existing shareholders (except the bidding company) to buy more shares at a discount. This type of poison pill is usually written into the company’s shareholder-rights plan. (To learn more about these and other shareholders’ rights, see Knowing Your Rights as a Shareholder.) The goal of the flip-in poison pill is to dilute the shares held by the bidder and make the takeover bid more difficult and expensive.

The 'flip-over' poison pill allows stockholders to buy the acquirer's shares at a discounted price in the event of a merger. If investors fail to take part in the poison pill by purchasing stock at the discounted price, the outstanding shares will not be diluted enough to ward off a takeover.

An extreme version of the poison pill is the "suicide pill" whereby the takeover-target company may take action that may lead to its ultimate destruction.

http://www.investopedia.com/articles/01/050901.asp

(From the Special SH meeting notice)
6. To authorize the officers and directors of the Company with full power and authority to implement anti-takeover measures as may be prudent and necessary under the circumstances to prevent and deter a hostile takeover of the Company by persons both known and unknown to the Company, including but not limited to, the issuance of super voting shares, adopting so-called anti-takeover "poison pill", and other measures whose purpose is to protect the assets of the Company from take over by a hostile party at valuations detrimental to all stockholders.