On July 25th, crypto miner Riot Platforms said in a statement on July 24th that the Ontario Capital Markets Tribunal issued a cease-and-desist order against Bitfarms' poison pill plan, immediately terminating the strategy. Since June 13th, Bitfarms has been opposing Riot Platforms' $950 million takeover offer, saying Riot unfairly undervalued the company. The company adopted a poison pill strategy known as a "rights issue" to try to block the acquisition. The poison pill strategy is often used by companies to prevent hostile takeovers.
Under the strategy, existing shareholders bought additional shares at a significant discount, diluting the value of the acquirer's stake. Under Bitfarms' now-defunct rights issue, if any entity acquired more than 15 per cent of the company's outstanding shares by September 10, Bitfarms would issue new shares to other existing shareholders, reducing the entity's ownership.
The judge ruled that Bitfarms immediately terminated its "poison pill" strategy of trying to oppose the Riot Platforms takeover
2024-07-25 05:54:46
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