Allana Potash adopts poison pill, shares up over 12%

Allana Potash (TSE:AAA) reported on Tuesday that it has adopted a shareholder rights plan, boosting shares nearly 13%.

Shares of Allana popped 12.79% to 97 cents a share Tuesday afternoon on the Toronto Stock Exchange.

Allana said that although the company is in talks with various strategic parties the shareholder plan is not being proposed in response to any specific take-over bid.

In a statement, the company said: "The board did not adopt the plan to prevent a take-over of the company, to secure the continuance of management or the directors in their respective offices or to deter fair offers for the common shares."

The company said its aim is to ensure that company stakeholders are treated equally and fairly related to any take-over bid.

The plan discourages discriminatory, coercive or unfair take-overs of the company and gives its board time to pursue alternatives to maximize shareholder value in the event an unsolicited take-over bid is made.

The shareholder plan is subject to Toronto Stock Exchange and shareholder approval. 

Allana Potash, formerly Allana Resources, is engaged in the exploration and development of a previously explored Dallol potash property in the Danakil Depression, Ethiopia.