Bitfarms announced on Monday that its Board of Directors has unanimously approved a shareholder rights plan, effective immediately, to preserve the integrity of its strategic alternatives review process in response to an unsolicited takeover offer from Riot Platforms Inc.
The plan, commonly known as a “poison pill,” is intended to prevent any party from gaining control of Bitfarms without providing fair value to all shareholders.
‘Poison pill’ Strategy
A poison pill strategy is a defensive measure used to prevent corporate takeovers by making a deal too expensive for the acquiring company. Bitfarms stated that it would issue new stock to existing shareholders, diluting the stake of any entity pursuing a hostile takeover.
Under the Rights Plan, one right will be issued for each common share outstanding as of June 20. These rights will become exercisable if any person or entity acquires 15% or more of Bitfarms’ outstanding common shares without complying with the plan’s “Pe
We współpracy z: https://cryptopotato.com/bitfarms-outlines-defense-plan-against-rival-riots-ongoing-takeover-bid/
