Bitfarms
has
introduced
a
new
shareholder
rights
plan
—
a
so-called
poison
pill
strategy
—
to
thwart
Riot
Platforms’
takeover
attempt,
according
to
a
July
24
statement.
The
miner
intends
to
issue
new
shares
to
dilute
stakes
if
any
entity,
including
Riot
Platforms,
acquires
over
20%
of
its
shares
within
the
next
six
months.
The
move
still
requires
shareholder
ratification
and
approval
from
the
Toronto
Stock
Exchange.
The
firm’s
board
of directors
unanimously
approved
the
plan
on
July
24,
after
the
Ontario
Capital
Markets
Tribunal
ordered
the
firm
to
end
its initial
poison
pill
strategy, which
was
implemented
in
June.
In
June,
Bitfarms
adopted
a
poison
pill
strategy
that
would
lead
to
the
issuance
of
new
shares
if
an
entity
acquired
more
than
15%
of
its
shares.
However,
Riot
—
which
has
purchased
14.9%
of
Bitfarms’
shares
—
challenged
the
poison
pill
plan
at
the
Ontario
tribunal
and
won
a
ruling
in
its
favor.
Riot
CEO
Jason
Les
welcomed
the
decision,
saying:
“The
adoption
of
the
off-market
Poison
Pill
is
yet
another
example
of
the
broken
corporate
governance
that
plagues
Bitfarms
and
of
the
ongoing
attempts
by
the
Bitfarms
directors
to
entrench
themselves.
We
appreciate
that
the
Tribunal
acted
quickly
and
decisively
to
remove
the
Poison
Pill.”
Riot
has
also
called
a
shareholder
meeting
to
remove
Bitfarms’
founder
from
the
board.
Shareholders
protection
According
to
Bitfarms,
the
new
shareholder
rights
plan
aims
to
ensure
fair
treatment
of
shareholders
in
any
future
acquisition
attempts.
The
firm
added
that
the
plan
also
protects
against
“creeping
bids”
—
a
situation
where
an
entity
accumulates
a
significant
stake
in
its
shares
without
a
formal
takeover
bid.
Bitfarms
further
emphasized
that
the
new
plan
is
not
a
reaction
to
any
specific
acquisition
proposal
but
seeks
to
ensure
fair
and
equal
treatment
for
all
shareholders.
The
development
marks
the
latest
in
the
ongoing
takeover
drama
between
Riot
and
Bitfarms.
In
May,
Bitfarms
rejected
Riot’s
$950
million
acquisition
bid
and
has
since
bolstered
its
board
with
the
appointment
of
Fanny
Philip
and
the
elevation
of
Ben
Gagnon
to
the
CEO
position.
Mentioned
in
this
article
Go to Source
Author: Oluwapelumi Adejumo
