WIT Announces Shareholder Rights Plan and Stock Split

Weyburn Inland Terminal (WIT) today announced two events of interest to their shareholders, both of which are designed to ensure WIT shareholders are treated in a manner consistent with shareholders of most other Canadian companies.

First, the WIT Board of Directors has adopted a shareholder rights plan, commonly called a ‘poison pill’, to be effective on November 4, 2009.   President Claude Carles noted that “the purpose of the rights plan is to provide shareholders and the Board with adequate time to consider and evaluate any unsolicited take-over bid made for WIT's common shares, to provide the Board with adequate time to identify, develop and negotiate value-enhancing alternatives, and to encourage the fair treatment of shareholders in connection with any take-over bid.” Carles stressed that the rights plan was not adopted in response to an anticipated takeover-bid, but as a general planning measure.  Shareholders will be asked to ratify the rights plan at the Annual and Special Meeting of the shareholders to be held in April, 2010. A copy of the rights plan will be available for review from the WIT office or at www.sedar.com.

WIT also announced that its Board has approved a five-for-one stock split of WIT's outstanding common shares. All shareholders will receive four additional shares for each common share owned on the record date of November 4, 2009.  CEO Rob Davies explained that a stock split is common practice for companies who are looking to ensure that enough shares are available for good price discovery and liquidity in the trading market.  WIT common shares underwent similar splits in 1978 and 1998, when shares were split ten-for-one on both occasions.  “WIT shares trade on an over the counter market through Union Securities Ltd., however the market has had more buyers than sellers for some time now” said Davies.  “We are expecting that the split may encourage some more trading activity, allowing more of the purchaser demand to be met.”

WIT is a shareholder-owned, farmer-directed grain company located on CP Rail’s Soo Line near Weyburn, Saskatchewan. Since its start in 1976, ‘The Terminal’ has been at the forefront of change in the industry, leading the way to help improve the overall efficiency of Canada’s grain-handling system. The philosophy and goals of the company are summed up in its mission statement: Profitability Through Service, Innovation and Integrity.