Bitfarms Adopts Shareholder Rights Plan
(RTTNews) - Bitfarms Ltd. (BITF), a Bitcoin vertically integrated company, announced Monday that its Board of Directors has unanimously approved the adoption of a shareholder rights plan. With the Rights Plan, the company expects to preserve the integrity of its previously announced strategic alternatives review process.
The company on June 10 had entered into a shareholder rights plan agreement with TSX Trust Co. as rights agent.
As announced earlier, the Board formed a special committee of independent directors to conduct a Strategic Alternatives Review Process to consider, among other things, continuing to execute on the company's business plan, a business combination or other strategic transaction, or a sale.
Riot Platforms, Inc. is the holder of a minimum of 47.83 million shares in the capital of the company, representing 11.62% of the issued and outstanding voting securities of the Company. It has made an unsolicited proposal to the Board to acquire all shares, and announced its intention to requisition a special meeting of shareholders in efforts to circumvent and frustrate the Strategic Alternatives Review Process being undertaken by the Special Committee.
After receiving Riot's proposal on April 22, at which time Riot owned 3.61% of the issued and outstanding voting securities, the Special Committee thoroughly evaluated the proposal, and after careful consideration, determined that the proposal significantly undervalues the company and its growth prospects.
The Special Committee has welcomed Riot's interest in the Company and participation in the ongoing Strategic Alternatives Review Process, including by agreeing to the standstill term proposed by Riot.
The company noted that Riot declined to participate in the ongoing Strategic Alternatives Review process and instead has continued to acquire the company's common shares in the open market.
In pre-market activity on the Nasdaq, Bitfarms shares were losing around 2.9 percent to trade at $2.33.
