At Extreme Investor Network, we are dedicated to providing our readers with exclusive insights and valuable information in the world of cryptocurrency and blockchain. In our latest blog post, we delve into the recent developments at Bitfarms Ltd., a global Bitcoin data center company.
The company has made headlines with its adoption of a new shareholder rights plan following a decision by the Capital Markets Tribunal of the Ontario Securities Commission to cease trade the company’s former plan. This move comes after hearings on July 22 and 23, 2024, where the Tribunal ruled to terminate Bitfarms’ previous shareholder rights plan, which was initially put in place to safeguard the independent Special Committee’s strategic review process amidst acquisition attempts by Riot Platforms, Inc.
In response to this development, Bitfarms’ Board of Directors unanimously approved the new shareholder rights plan, effective from July 24, 2024. The plan is designed to ensure fair treatment of all shareholders in the event of unsolicited take-over bids or acquisitions of control of the company, while also providing protection against ‘creeping bids.’
As stated by Brian Howlett, Lead Director of the Bitfarms Board, “The Tribunal has decided to cease trade Bitfarms’ Rights Plan, which effectively terminates the plan. In light of this decision, the Bitfarms Board has adopted the New Rights Plan to ensure the interests of all shareholders are protected.”
The new rights plan includes provisions for issuing rights attached to each common share outstanding as of August 6, 2024, in response to any entity acquiring or announcing the intention to acquire 20% or more of the company’s common shares. The plan is subject to shareholder ratification within six months and, if approved, will have an initial term of three years.
Despite the Tribunal’s decision, Bitfarms remains committed to maximizing value for shareholders and achieving the best possible outcomes for the company. With a focus on sustainable energy and a network of data centers across four countries, Bitfarms is well-positioned for future growth and success.
To navigate these developments, Bitfarms has engaged Moelis & Company LLC as its financial advisor and enlisted the expertise of legal firms such as Skadden, Arps, Slate, Meagher & Flom LLP, Peterson McVicar LLP, and McMillan LLP. Strategic advice and proxy solicitation support are being provided by Innisfree M&A Incorporated and Laurel Hill Advisory Group.
At Extreme Investor Network, we see Bitfarms’ new rights plan as a crucial step to protect shareholder interests and ensure transparent and fair acquisition processes. Stay tuned for more updates and insights on the latest trends in the cryptocurrency and blockchain industry.