Bitfarms Ltd. Shareholder Meeting Announcement 📅
Bitfarms Ltd. (Nasdaq/TSX: BIT), a prominent Bitcoin (BTC) data center company, is set to host a special shareholder meeting on October 29, 2024. This meeting is a response to a requisition made by Riot Platforms, Inc., that was filed on June 24, 2024. Shareholders who held stocks as of September 26, 2024, will have the right to vote during the meeting.
Riot Platforms’ Requisition Background 🔄
Riot Platforms submitted a requisition to disrupt Bitfarms’ strategic alternatives review and potentially acquire the company. After careful evaluation by a special committee of independent directors, the Board of Directors decided on the meeting date. Several factors were taken into consideration with the support of financial and legal advisors.
Considerations and Recommendations 🤔
- Riot could have addressed concerns at the previous annual general meeting held on May 31, 2024.
- Adequate time is needed for shareholders to evaluate Riot’s proposals.
- Riot has not presented a new business or corporate strategy for Bitfarms.
- The time required to complete the strategic alternatives review process was a factor.
- Riot’s urgency stemmed from alleged poor governance by Bitfarms’ Board.
- Riot requested to set the record date after an Ontario Securities Commission hearing.
- The implications of Riot increasing its holdings to 19.9% without triggering the Rights Plan.
- The opportunity to discuss the outcomes of the Ontario Securities Commission hearing with shareholders.
Upcoming Shareholder Decisions 💼
During the meeting, shareholders will discuss the requisitioned matters along with the ratification of the Rights Plan. A detailed management information circular will be provided prior to the meeting. Shareholders are not required to take any action at this time.
Bitfarms’ Commitment and Stakeholder Engagement 🤝
Bitfarms is committed to engaging positively with stakeholders to prevent unnecessary expenditure of limited cash resources due to actions taken by Riot.
Advisors and Legal Representation 🧑⚖️
Bitfarms has enlisted Moelis & Company LLC as their financial advisor, along with legal support from Skadden, Arps, Slate, Meagher & Flom LLP, Peterson McVicar LLP, and McMillan LLP. Innisfree M&A Incorporated and Laurel Hill Advisory Group are serving as strategic advisors and proxy solicitation agents.
About Bitfarms Ltd. 🌐
Established in 2017, Bitfarms is a leading global Bitcoin mining company that operates 12 mining facilities in Canada, the United States, Paraguay, and Argentina, with additional facilities in development. The company focuses on utilizing environmentally friendly hydro-electric power and securing long-term power contracts.
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