11:55 AM EST, 12/30/2024 (MT Newswires) -- Sierra Metals ( SMTSF ) was at last look down 3.5% on Monday after saying it has adopted a shareholder rights plan, effective immediately, just days after its shareholders rejected a proposed takeover bid by Alpayana.

The rights plan is designed to ensure that the company's shareholders are treated fairly in any takeover bid and to protect against "creeping bids" for its outstanding common shares through purchases exempt from applicable takeover bid rules.

Holders of the rights will be allowed to exercise their rights to buy additional common shares at a 50% discount to the prevailing market price. One right attaches to each issued and outstanding common share.

The rights plan is subject to ratification by Sierra Metals ( SMTSF ) shareholders and to TSX approval.

If the rights plan is not ratified at a special meeting of shareholders on or before June 30, 2025, the rights plan will terminate and all rights issued under it will be canceled.

This comes just days after the company announced that a majority of its shareholders have committed not to tender their shares in the event that Alpayana formalizes its proposed unsolicited all-cash take-over bid to buy all of the issued and outstanding common shares of Sierra Metals ( SMTSF ) for $0.85 per share.

Price: 0.81, Change: -0.03, Percent Change: -3.57