Riot Platforms Announces Settlement Agreement with Bitfarms, Board Changes Enacted
James Ding Sep 24, 2024 04:24
Riot Platforms and Bitfarms Ltd. reach a settlement agreement, resulting in board changes and withdrawal of a shareholder meeting requisition.
Riot Platforms, Inc. (NASDAQ: RIOT) has announced a significant settlement agreement with Bitfarms Ltd. (NASDAQ/TSX: BITF), according to riotplatforms.com. This development, which took place on September 23, 2024, includes notable changes to Bitfarms' Board of Directors and the resolution of a pending shareholder meeting requisition.
Key Terms of the Settlement Agreement
As part of the agreement, Andrés Finkielsztain has resigned from Bitfarms' Board of Directors. Amy Freedman has been appointed as a new board member and will serve on the Governance and Nominating Committee and the Compensation Committee. Additionally, she will join any special committee of independent directors, provided she remains independent under the committee's mandate. Riot has also withdrawn its requisition for a special meeting of Bitfarms' shareholders.
Riot's Stake in Bitfarms
Riot Platforms holds a significant stake in Bitfarms, owning 90,110,912 common shares, which represents approximately 19.9% of Bitfarms' issued and outstanding shares. Riot intends to continuously review its investment in Bitfarms, considering various factors such as the company's financial position, strategic direction, market conditions, and other investment opportunities.
Future Actions and Strategic Considerations
Riot may adjust its position in Bitfarms through the purchase or sale of securities, including common shares and other equity or debt instruments. Additionally, Riot might engage in transactions that increase or hedge its economic exposure to Bitfarms' common shares without affecting its beneficial ownership. Riot is also contemplating actions described in its early warning report, which could include submitting a revised proposal to acquire Bitfarms.
Regulatory Filings and Further Information
Riot Platforms will file an Early Warning Report in accordance with applicable Canadian securities laws, which will be available on the SEDAR+ website. The settlement agreement and related details will also be accessible under Bitfarms' profile on SEDAR+.
For more comprehensive information, interested parties can refer to the joint press release issued by Riot and Bitfarms on September 23, 2024, and the full text of the settlement agreement on SEDAR+.
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