Bitfarms implements ‘poison pill’ strategy in response to Riot Platforms’ acquisition bid.

The Rights Plan, also known as a “poison pill,” is intended to safeguard the interests of Bitfarms’ shareholders. It aims to deter potential hostile takeover attempts.

On June 20, one right will be granted per common share. These rights can be exercised if any individual, along with certain related persons, acquires 15% or more of the outstanding common shares before September 10, or 20% thereafter, without adhering to the plan’s regulations.

The Rights Plan must be ratified by shareholders within six months. Additionally, approval from the Toronto Stock Exchange is required, which might lead to delays in acceptance until the relevant securities commission is satisfied.

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