Capital Markets Tribunal Establishes New Framework for Evaluating Poison Pills
JD Supra: Mergers
NOVEMBER 22, 2024
The Ontario Capital Markets Tribunal recently released its highly anticipated reasons for cease trading a shareholder rights plan adopted by Bitfarms Ltd. (Bitfarms) with a 15% trigger (15% Rights Plan). In Riot Platforms, Inc. v. Bitfarms Ltd., 2024 ONCMT 27, the Tribunal exercised its public interest jurisdiction under section 127(1) of the Ontario Securities Act to cease trade the 15% Rights Plan because it deviated both from the customary 20% trigger contained in virtually all “next.
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