(Reuters) -Bitcoin miner Riot Platforms said on Wednesday a Canada-based tribunal has terminated rival Bitfarms’ attempt to adopt a “poison pill” to thwart its acquisition.
The cease trade order by Ontario Capital Markets Tribunal terminates Bitfarms’ poison pill, which contemplated a 15% trigger, effective immediately, Riot said in a statement.
Last month, Bitfarms rebuffed Riot’s $950 million offer, citing it undervalued the company and adopted a “poison pill” to fend off a hostile takeover.
Under the plan, if an entity took more than 15% stake in the company after June 20 and up to Sept. 10, Bitfarms will issue fresh shares to other stockholders, diluting the entity’s stake.
“This ruling from the Tribunal in favor of Riot’s application is a win for all Bitfarms shareholders,” Riot CEO Jason Les said.
Riot said it continues to believe that their three director nominees – John Delaney, Amy Freedman and Ralph Goehring – must be elected to the Bitfarms Board at the 2024 Special Meeting of Shareholders.
(Reporting by Gnaneshwar Rajan in Bengaluru; Editing by Alan Barona and Sherry Jacob-Phillips)
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