PYR Energy Corporation Adopts Shareholder Rights Plan
January 31 2007 - 7:35PM
PR Newswire (US)
DENVER, Jan. 31 /PRNewswire-FirstCall/ -- PYR Energy Corporation
(AMEX:PYR) announced today that its Board of Directors has adopted
a shareholder rights plan designed to ensure that all PYR Energy
shareholders receive fair and equal treatment in the event of an
unsolicited takeover proposal. The plan is intended to safeguard
against abusive takeover tactics that limit the ability of all
shareholders to realize the long-term value of their investment in
PYR Energy. To implement the plan, the Board of Directors declared
a dividend distribution of one Preferred Share Purchase Right on
each outstanding share of common stock, par value $0.001 per share,
held of record on February 9, 2007, payable to stockholders of
record on that date. The Rights will automatically trade with the
underlying common stock and will not be exercisable. The Rights
will be exercisable only if, and upon the earlier to occur of (a)
ten business days after the public announcement that a person has
acquired beneficial ownership of 15% or more of the Company's
outstanding shares of common stock, or (b) ten business days
following the commencement of a tender or exchange offer by a
person for 15% or more of the outstanding shares of common stock.
If the rights become exercisable, the type and amount of securities
receivable upon exercise of the rights would depend on the
circumstances at the time of exercise. Initially, each right would
entitle holders to purchase one one-thousandth of a share of PYR
Energy's newly created Series A Junior Participating Preferred
Stock at an exercise price of $5.00. If a person acquires 15
percent or more of PYR Energy 's common stock in a transaction that
was not approved by PYR Energy's Board of Directors, each right,
other than those owned by the acquiring person, would instead
entitle the holder to purchase $10.00 worth of PYR Energy's common
stock, or an equivalent amount of Series A Junior Participating
Preferred Stock, for the $5.00 exercise price. If PYR Energy is
involved in a merger or other transaction with another company that
is not approved by PYR Energy's Board of Directors, in which PYR
Energy is not the surviving corporation, or which transfers more
than 50 percent of PYR Energy's assets to another company, then
each right, other than those owned by the acquiring person, would
instead entitle the holder to purchase $10.00 worth of the
acquiring company's common stock for the $5.00 exercise price.
Following the acquisition by a person of beneficial ownership of
15% or more of the outstanding shares of the Company's common stock
and prior to an acquisition of 50% or more of the outstanding
shares of common stock, the Board of Directors may exchange the
Rights (other than Rights owned by such person), in whole or in
part, at an exchange ratio of one share of common stock (or one
one-thousandth of a share of the new series of junior participating
preferred stock) per Right. Prior to the acquisition by a person of
beneficial ownership of 15% or more of the outstanding shares of
the Company's common stock, the Rights are redeemable for $.01 per
Right at the option of the Board of Directors subject to certain
limitations. Unless the Rights are redeemed or exchanged earlier,
they will expire on January 31, 2010. A summary of the rights plan
will be included in a Form 8-K to be filed by PYR Energy with the
SEC and will also be mailed to shareholders of record of PYR
Energy's common stock shortly after the February 9, 2007 record
date. Denver based PYR Energy is an independent oil and gas company
primarily engaged in the exploration, development, and production
of natural gas and crude oil. At the current time, PYR's activities
are focused in select areas of the Rocky Mountain region, Texas,
and the Gulf Coast. Additional information about PYR Energy
Corporation can be accessed via the Company's web site at
http://www.pyrenergy.com/. This release contains forward-looking
statements regarding PYR Energy Corporation's future plans and
expected performance based on assumptions the Company believes to
be reasonable. A number of risks and uncertainties could cause
actual results to differ materially from these statements,
including, without limitation, the success rate of exploration
efforts and the timeliness of development activities, fluctuations
in oil and gas prices, and other risk factors described from time
to time in the Company's reports filed with the SEC. In addition,
the Company operates in an industry sector where securities values
are highly volatile and may be influenced by economic and other
factors beyond the Company's control. This press release includes
the opinions of PYR Energy and does not necessarily include the
views of any other person or entity. DATASOURCE: PYR Energy
Corporation CONTACT: Ken Berry, President & CEO, or Tucker
Franciscus, Vice President, both of PYR Energy Corporation,
+1-303-825-3748, or fax, +1-303-825-3768 Web site:
http://www.pyrenergy.com/
Copyright
Pyr Energy (AMEX:PYR)
Historical Stock Chart
From Dec 2024 to Jan 2025
Pyr Energy (AMEX:PYR)
Historical Stock Chart
From Jan 2024 to Jan 2025