Bitfarms reschedules special meeting; proposes settlement terms to Riot
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Bitfarms (NASDAQ:BITF) said it has rescheduled the special meeting for shareholders to November 6 from October 29.
Additionally, the Bitfarms special committee proposed the addition of one mutually agreed upon board nominee resulting in an increase of the size of the board to six, and standstill and other customary provisions.
The special committee proposed the above-mentioned terms in a settlement agreement forwarded to Riot (RIOT).
“Recognizing the high costs and distraction associated with a proxy contest, the Bitfarms Special Committee continues to seek to engage constructively with Riot in an effort to resolve the Amended Requisition so that Bitfarms need not expend its cash resources to protect the interests of its shareholders against the actions of Riot,” the company said.
The meeting was called in response to the requisition made by Riot Platforms (RIOT).
The meeting was postponed to give the Bitfarms special committee more time to review and reply to Riot’s (RIOT) amended requisition. The change in dates will also give shareholders more time to evaluate the information relevant to the voting decision regarding the future of their investment in the company.
In June, Riot (RIOT) had withdrawn its $2.30 per share offer for Bitfarms (BITF), and instead, sought to place three directors on Bitfarms’ board. At that time, RIOT held an almost 15% stake in Bitfarms.
Last week, Riot (RIOT) reduced the number of its nominees for Bitfarms’ (BITF) board to two from three, the company said in a letter that still seeks corporate governance changes at the bitcoin miner.
Riot (RIOT) currently owns 19.9% of Bitfarms (BITF), making it the company’s largest shareholder. Since Riot started its campaign to add three directors to Bitfarms’ board, two directors stepped down from Bitfarms’ board, two new members were named, and the company appointed a new chairman, along with other executive leadership changes.
Shares in BITF were up ~6% in early trade, while RIOT was up 2%.