Bitcoin mining company Bitfarms approved shareholder rights plan 10 days after meeting

Bitcoin mining company Bitfarms has adopted a shareholder rights plan 10 days after its annual and private general meeting. The plan would allow the attempted hostile takeover of Riot Platforms to proceed, but only under very restricted conditions.

تنص خطة حقوق المساهمين على أنه إذا أصبح الشخص From 15 to 20 Bitfarms بر ثم زادوا حصتهم إلى 20٪ دون موافقة مجلس الإدارة، فيمكن للمساهمين ال آخرين “شراء أسهم عادية بخصم كبير عن سعر السوق At this moment.”

Bitfarms and Riot play hardball

Following this process, it will be possible to make a takeover offer, as permitted by Canadian law. However, the bidder’s share will be diluted in the meantime.

According to Riot, the Bitfarms board “rejected[la proposition d’acquisition de Riot en avril]without engaging in substantial dialogue.” Bitfarms’ version of the same transaction stated that Bitfarms “welcomed” Riot’s interest in the company, but believed Riot’s offer undervalued the company’s stock. But Riot changed tactics and returned to its own proposal:

“Unfortunately, Riot refused to participate in the “freeze” process (which I had proposed) and instead continued to acquire common shares of the company on the open market (…) in an attempt to undermine the integrity of the process and frustrate interests. To third parties.

Riot scores strategic points

Riot increased its stake in Bitfarms from 3.61% to 11.62% at the time of the shareholders’ meeting.

Related: Bitcoin Halving Impacts Miner Riot’s Revenue by 43% Despite New Facilities

Bitfarms founder Emiliano Grodzki failed to retain his seat on the board of directors in elections held at the shareholders’ meeting. Riot questioned whether Grodzki and Nicholas Bonta were acting “in the best interests of all shareholders.”

Source: Dr. Lewis

Bonta was re-elected as chairman of the board with a large majority, but Bitfarms said when announcing the election results that “concerns about independence expressed by some proxy advisory firms are believed to be… ) led to Mr Grodzki not being re-elected. elected.”

Riot Platforms intended to request an additional general meeting of shareholders after the Bitfarms meeting on May 31 to add more members to the board of directors. In a June 10 statement announcing the plan, Bitfarms described the proposed meeting as part of Riot Platforms’ “efforts to circumvent and thwart” its board’s review process to consider a sale of the company. .

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