Bitfarms Announces Toronto Stock Exchange Deferral of Consideration of Shareholder Rights Plan
Bitfarms (Nasdaq/TSX: BITF) announced that the Toronto Stock Exchange (TSX) has deferred its consideration of the company's shareholder rights plan. The deferral will remain in effect until: 1) the TSX is satisfied that appropriate securities commissions will not intervene, and 2) shareholders ratify the Rights Plan by January 24, 2025. Despite this deferral, the Rights Plan remains operative and effective for at least six months from its July 24, 2024 adoption date, unless terminated earlier. The TSX's deferral does not affect the adoption or operation of the Rights Plan. Bitfarms, a global Bitcoin vertically integrated company, made this announcement as part of a designated news release related to its recent prospectus supplement.
Bitfarms (Nasdaq/TSX: BITF) ha annunciato che la Borsa di Toronto (TSX) ha rinviato la sua valutazione del piano di diritti degli azionisti della società. Il rinvio rimarrà in vigore fino a quando: 1) la TSX sarà soddisfatta che le commissioni di sicurezza appropriate non interverranno, e 2) gli azionisti ratificheranno il Piano dei Diritti entro il 24 gennaio 2025. Nonostante questo rinvio, il Piano dei Diritti rimane operativo ed efficace per almeno sei mesi dalla sua data di adozione del 24 luglio 2024, salvo cessazione anticipata. Il rinvio della TSX non influisce sull'adozione o sul funzionamento del Piano dei Diritti. Bitfarms, un'azienda globale di Bitcoin verticalmente integrata, ha reso questo annuncio come parte di un comunicato stampa designato relativo al suo recente supplemento del prospetto.
Bitfarms (Nasdaq/TSX: BITF) anunció que la Bolsa de Valores de Toronto (TSX) ha pospuesto su consideración del plan de derechos de los accionistas de la compañía. El aplazamiento se mantendrá vigente hasta que: 1) la TSX esté satisfecha de que las comisiones de valores apropiadas no intervendrán, y 2) los accionistas ratifiquen el Plan de Derechos antes del 24 de enero de 2025. A pesar de este aplazamiento, el Plan de Derechos sigue siendo operativo y efectivo durante al menos seis meses desde su fecha de adopción del 24 de julio de 2024, a menos que se termine antes. El aplazamiento de la TSX no afecta la adopción ni el funcionamiento del Plan de Derechos. Bitfarms, una empresa global de Bitcoin verticalmente integrada, hizo este anuncio como parte de un comunicado de prensa designado relacionado con su reciente suplemento de prospecto.
Bitfarms (Nasdaq/TSX: BITF)은 토론토 증권 거래소(TSX)가 회사의 주주 권리 계획에 대한 검토를 연기했다고 발표했습니다. 이 연기는 1) TSX가 관련 증권 위원회가 개입하지 않을 것이라고 만족할 때까지, 그리고 2) 주주들이 2025년 1월 24일까지 권리 계획을 비준할 때까지 유효합니다. 이 연기에도 불구하고, 권리 계획은 2024년 7월 24일 채택일로부터 최소 6개월 동안 운영되고 효력을 유지합니다 (조기 종료되지 않는 한). TSX의 연기는 권리 계획의 채택이나 운영에 영향을 미치지 않습니다. Bitfarms는 수직적으로 통합된 글로벌 비트코인 기업으로, 최근의 증권 보충과 관련된 지정된 뉴스 발표의 일환으로 이번 발표를 했습니다.
Bitfarms (Nasdaq/TSX: BITF) a annoncé que la Bourse de Toronto (TSX) a reporté l'examen du plan de droits des actionnaires de la société. Le report restera en vigueur jusqu'à ce que : 1) la TSX soit satisfaite que les commissions de valeurs mobilières appropriées n'interviendront pas, et 2) les actionnaires ratifient le Plan de Droits d'ici le 24 janvier 2025. Malgré ce report, le Plan de Droits reste opérationnel et efficace pendant au moins six mois à partir de sa date d'adoption du 24 juillet 2024, sauf résiliation anticipée. Le report de la TSX n'affecte pas l'adoption ou le fonctionnement du Plan de Droits. Bitfarms, une entreprise mondiale de Bitcoin intégrée verticalement, a fait cette annonce dans le cadre d'un communiqué de presse désigné lié à son récent supplément de prospectus.
Bitfarms (Nasdaq/TSX: BITF) gab bekannt, dass die Toronto Stock Exchange (TSX) die Prüfung des Aktionärsrechteplans des Unternehmens aufgeschoben hat. Der Aufschub bleibt in Kraft, bis: 1) die TSX sicher ist, dass keine zuständigen Wertpapierkommissionen intervenieren werden, und 2) die Aktionäre den Rechteplan bis zum 24. Januar 2025 ratifizieren. Trotz dieses Aufschubs bleibt der Rechteplan für mindestens sechs Monate nach dem Annahmedatum am 24. Juli 2024 in Kraft und wirksam, es sei denn, er wird vorher beendet. Der Aufschub der TSX hat keine Auswirkungen auf die Annahme oder den Betrieb des Rechteplans. Bitfarms, ein global vertikal integriertes Bitcoin-Unternehmen, gab diese Ankündigung im Rahmen einer speziellen Pressemitteilung zu seinem aktuellen Prospektantrag heraus.
- The shareholder rights plan remains operative and effective despite TSX deferral
- The company has until January 24, 2025 to obtain shareholder ratification
- TSX has deferred consideration of Bitfarms' shareholder rights plan
- Potential regulatory intervention from securities commissions
Insights
The Toronto Stock Exchange's deferral of consideration for Bitfarms' shareholder rights plan is a procedural development rather than a substantive change to the company's operations or financial position. This move by the TSX is not uncommon and reflects the exchange's cautious approach to ensuring regulatory compliance.
The key points to consider are:
- The deferral does not invalidate the Rights Plan, which remains operational for at least six months from its July 24, 2024 adoption date.
- Bitfarms must secure shareholder ratification by January 24, 2025, to maintain the plan's long-term viability.
- The TSX is seeking assurance that securities commissions won't intervene, indicating a desire for regulatory alignment.
For investors, this development suggests a neutral impact on Bitfarms' immediate market position. The Rights Plan, often referred to as a 'poison pill,' is typically implemented to protect against hostile takeovers. Its continued operation, despite the TSX deferral, indicates that Bitfarms' management remains committed to maintaining control over potential acquisition attempts.
However, the requirement for shareholder ratification introduces an element of uncertainty. Investors should monitor the company's communications and any shareholder meetings scheduled to address this matter. The outcome of the shareholder vote could provide insights into the alignment between management's strategies and shareholder interests.
In the broader context of the cryptocurrency mining sector, the implementation and maintenance of such defensive measures may reflect management's perception of the company's value or potential vulnerabilities in a volatile market. Investors should consider how this fits into Bitfarms' overall corporate governance and strategic positioning within the industry.
This news release constitutes a “designated news release” for the purposes of the Company’s prospectus supplement dated March 8, 2024, to its short form base shelf prospectus dated November 10, 2023.
TORONTO, Ontario and BROSSARD, Québec, July 26, 2024 (GLOBE NEWSWIRE) -- Bitfarms Ltd. (Nasdaq/TSX: BITF) (“Bitfarms” or the “Company”), a global Bitcoin vertically integrated company, today announced that it has been notified by the Toronto Stock Exchange (the “TSX”) that the TSX will defer its consideration of the acceptance of the Company’s shareholder rights plan (the “Rights Plan”), as announced on July 24, 2024, until: (i) such time as it is satisfied that the appropriate securities commission will not intervene pursuant to National Policy 62-202; and (ii) the ratification of the Rights Plan by the shareholders of the Company by no later than January 24, 2025.
A deferral of acceptance of the Rights Plan by the TSX does not affect the adoption or operation of the Rights Plan, which will remain operative and effective for a minimum of six months from the date of adoption on July 24, 2024, unless earlier terminated.
A copy of the Rights Plan is available under the Company’s profile on SEDAR+ at www.sedarplus.ca or at www.sec.gov.
About Bitfarms Ltd.
Founded in 2017, Bitfarms is a global Bitcoin mining company that contributes its computational power to one or more mining pools from which it receives payment in Bitcoin. Bitfarms develops, owns, and operates vertically integrated mining farms with in-house management and company-owned electrical engineering, installation service, and multiple onsite technical repair centers. The Company’s proprietary data analytics system delivers best-in-class operational performance and uptime.
Bitfarms currently has 12 operating Bitcoin data centers and two under development situated in four countries: Canada, the United States, Paraguay, and Argentina. Powered predominantly by environmentally friendly hydro-electric and long-term power contracts, Bitfarms is committed to using sustainable and often underutilized energy infrastructure.
To learn more about Bitfarms’ events, developments, and online communities:
www.bitfarms.com
https://www.facebook.com/bitfarms/
https://twitter.com/Bitfarms_io
https://www.instagram.com/bitfarms/
https://www.linkedin.com/company/bitfarms/
Cautionary Statement
Trading in the securities of the Company should be considered highly speculative. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. Neither the Toronto Stock Exchange, Nasdaq, or any other securities exchange or regulatory authority accepts responsibility for the adequacy or accuracy of this release.
Forward-Looking Statements
This news release contains certain “forward-looking information” and “forward-looking statements” (collectively, “forward-looking information”) that are based on expectations, estimates and projections as at the date of this news release and are covered by safe harbors under Canadian and United States securities laws. The statements and information in this release regarding the operation and termination of the Rights Plan, and TSX approval of the Rights Plan, are forward-looking information. Any statements that involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as “expects”, or “does not expect”, “is expected”, “anticipates” or “does not anticipate”, “plans”, “budget”, “scheduled”, “forecasts”, “estimates”, “prospects”, “believes” or “intends” or variations of such words and phrases or stating that certain actions, events or results “may” or “could”, “would”, “might” or “will” be taken to occur or be achieved) are not statements of historical fact and may be forward-looking information.
This forward-looking information is based on assumptions and estimates of management of the Company at the time they were made, and involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance, or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information. Such factors include, among others, risks relating to: the construction and operation of the Company’s facilities may not occur as currently planned, or at all; expansion may not materialize as currently anticipated, or at all; the power purchase agreements and economics thereof may not be as advantageous as expected; the digital currency market; the ability to successfully mine digital currency; revenue may not increase as currently anticipated, or at all; it may not be possible to profitably liquidate the current digital currency inventory, or at all; a decline in digital currency prices may have a significant negative impact on operations; an increase in network difficulty may have a significant negative impact on operations; the volatility of digital currency prices; the anticipated growth and sustainability of hydroelectricity for the purposes of cryptocurrency mining in the applicable jurisdictions; the inability to maintain reliable and economical sources of power for the Company to operate cryptocurrency mining assets; the risks of an increase in the Company’s electricity costs, cost of natural gas, changes in currency exchange rates, energy curtailment or regulatory changes in the energy regimes in the jurisdictions in which the Company operates and the potential adverse impact on the Company’s profitability; the ability to complete current and future financings; the impact of the restatement on the price of the Company’s common shares, financial condition and results of operations; the risk that a material weakness in internal control over financial reporting could result in a misstatement of the Company’s financial position that may lead to a material misstatement of the annual or interim consolidated financial statements if not prevented or detected on a timely basis; historical prices of digital currencies and the ability to mine digital currencies that will be consistent with historical prices; and the adoption or expansion of any regulation or law that will prevent Bitfarms from operating its business, or make it more costly to do so. For further information concerning these and other risks and uncertainties, refer to the Company’s filings on www.sedarplus.ca (which are also available on the website of the U.S. Securities and Exchange Commission at www.sec.gov), including the MD&A for the year-ended December 31, 2023, filed on March 7, 2024 and the MD&A for three-month period ended March 31, 2024 filed on May 15, 2024. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those expressed in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended, including factors that are currently unknown to or deemed immaterial by the Company. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on any forward-looking information. The Company undertakes no obligation to revise or update any forward-looking information other than as required by law.
Investor Relations Contact:
Tracy Krumme
SVP, Investor Relations
+1 786-671-5638
tkrumme@bitfarms.com
Media Contacts:
Actual Agency
Khushboo Chaudhary
+1 646-373-9946
mediarelations@bitfarms.com
Québec Media
Tact
Louis-Martin Leclerc
+1 418-693-2425
lmleclerc@tactconseil.ca
U.S. Media
Dan Katcher or Joseph Sala
Joele Frank, Wilkinson Brimmer Katcher
212-355-4449
FAQ
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