The firm, which makes radar systems for the marine, defence, transportation and oil and gas sectors, says the intended offer will amount to 6.1 cents per share.
Rutter Inc. logo
The group making the offer currently owns or controls a 38.9 per cent stake in the company.
Rutter says it has formed an independent committee and has enlisted Farber Financial Group to help it review the offer.
In a news release, the company urged shareholders to not take any action until a formal offer is made, at which time it will have 35 days to respond.
Shares in Rutter soared 117per cent to 6.5 cents Tuesday, following the news on the Toronto Stock Exchange, and leaving a market cap of $5 million, based on 76.7 million shares outstanding. The 52-week range is 5 cents and 2.5 cents.
The Canadian Press
Rutter Inc. announced today it has been advised by Fraser Edison, James White, Ryan Hinz and Donald Clarke — members of the board of directors of Rutter — that a corporation controlled by them intends to make an unsolicited take-over bid for all of the outstanding common shares of Rutter not already owned by them and their associates on or after Jan. 17.
A news release notes the board of directors of Rutter has formed a committee consisting of Gary Bruce and David Slager — each of whom is an independent director — to evaluate the proposed offer and the alternatives for Rutter.
The committee has retained the Farber Financial Group to prepare a formal valuation of the common shares of Rutter.
If the proposed offer proceeds, shareholders will have a minimum of 35 days to respond to the offer.
The committee is urging Rutter shareholders not to deposit any shares and not to take any actions with respect to the offer until the committee has completed its review and reports to the shareholders.
Currently, the four men own, control or direct — directly or indirectly — 38.9 per cent of the issued and outstanding common shares of Rutter.
Rutter provides innovative technologies and engineering solutions in the marine, defence, transportation, oil and gas sectors from its headquarters in this province.