Riot Platforms, Inc. (“Riot”) issues this press release
pursuant to Part 3 of Canadian National Instrument 62-103 – The
Early Warning System and Related Take-Over Bid and Insider
Reporting Issues and Part 5 of Canadian National Instrument 62-104
– Take-Over Bids and Issuer Bids in respect of Bitfarms Ltd. (the
“Company”).
Riot announces that on June 5, 2024 it acquired ownership of
1,460,278 common shares (the “Purchased Shares”) of the
Company representing approximately 0.37% of the issued and
outstanding Common Shares (the “Common Shares”) of the
Company.
The Purchased Shares were acquired through normal course
purchases on the Nasdaq Stock Market and other open market trades
for a weighted average price of approximately US$2.45 per Purchased
Share (equivalent to approximately C$3.36 per Purchased Share based
on the daily exchange rate posted by the Bank of Canada on June 5,
2024 (the “Exchange Rate”)) at a price range per Purchased
Share of approximately US$2.39 to US$2.52 (equivalent to
approximately C$3.27 to C$3.44 based on the Exchange Rate) for an
aggregate amount equal to US$3,580,455.63 (equivalent to
approximately C$4,903,792.03 based on the Exchange Rate).
Immediately prior to the acquisition of Common Shares giving
rise to the issuance of this press release, Riot beneficially owned
46,370,162 Common Shares, representing approximately 11.63% of the
issued and outstanding Common Shares. Following completion of the
aforementioned acquisition, Riot beneficially owned 47,830,440
Common Shares, representing approximately 12.00% of the issued and
outstanding Common Shares as at the date hereof.
Riot currently intends to requisition a special meeting of the
Company’s shareholders, at which Riot intends to nominate several
well-qualified and independent directors to join the Company’s
board of directors (the “Board”), which follows from Riot’s
serious concerns regarding the Board’s track record of poor
corporate governance.
Riot intends to review its investment in the Company on a
continuing basis and depending upon various factors, including
without limitation, any discussion between Riot, the Company and/or
the Board and its advisors regarding Riot’s previously submitted
non-binding proposal (the “Proposal”), the proposed
requisition and/or the composition of the Board, the Company’s
financial position and strategic direction, overall market
conditions, other investment opportunities available to Riot, and
the availability of securities of the Company at prices that would
make the purchase or sale of such securities desirable, Riot may
(i) increase or decrease its position in the Company through, among
other things, the purchase or sale of securities of the Company,
including through transactions involving the Common Shares and/or
other equity, debt, notes, other securities, or derivative or other
instruments that are based upon or relate to the value of
securities of the Company in the open market or otherwise, (ii)
enter into transactions that increase or hedge its economic
exposure to the Common Shares without affecting its beneficial
ownership of the Common Shares or (iii) consider or propose one or
more of the actions described in subparagraphs (a) - (k) of Item 5
of Riot’s early warning report filed in accordance with applicable
Canadian securities laws.
This press release is not meant to be, nor should it be
construed as, an offer (or an intention to make an offer) to buy or
the solicitation of an offer to sell any of the Company’s
securities.
Riot will file the Early Warning Report in accordance with
applicable securities laws, which will be available under the
Company’s profile at www.sedarplus.ca. The head office of the
Company is 110 Yonge Street, Suite 1601 Toronto, Ontario M5C 1T4.
The address of Riot is 3855 Ambrosia Street, Suite 301, Castle
Rock, CO 80109.
FOR MORE INFORMATION
For further information and to obtain a copy of the Early
Warning Report, please see the Company’s profile on the SEDAR+
website (www.sedarplus.ca) or contact Phil McPherson, Vice
President, Capital Markets & Investor Relations, at (303)
794-2000 ext. 110.
About Riot Platforms, Inc.
Riot’s (NASDAQ: RIOT) vision is to be the world’s leading
Bitcoin-driven infrastructure platform. Our mission is to
positively impact the sectors, networks, and communities that we
touch. We believe that the combination of an innovative spirit and
strong community partnership allows the Company to achieve
best-in-class execution and create successful outcomes.
Riot, a Nevada corporation, is a Bitcoin mining and digital
infrastructure company focused on a vertically integrated strategy.
Riot has Bitcoin mining operations in central Texas and electrical
switchgear engineering and fabrication operations in Denver,
Colorado.
For more information, visit www.riotplatforms.com.
Non-Binding Proposal
Riot cautions Riot shareholders, Company shareholders and others
considering trading in Riot securities or Company securities that
the Proposal referred to in this press release is non-binding, does
not constitute and should not be construed as an offer or intention
to make an offer directly to Company shareholders, and there can be
no assurance that any definitive offer will be made by Riot, that
the Company will accept any offer made by Riot, that any agreement
will be entered into by Riot and the Company or that the Proposal
or any other transaction will be approved or consummated. Riot does
not undertake any obligation to provide any updates with respect to
the proposed transaction, except as required by applicable law.
Cautionary Note Regarding Forward Looking Statements
Statements contained herein that are not historical facts
constitute “forward-looking statements” and “forward-looking
information” (together, “forward-looking statements”) within the
meaning of applicable U.S. and Canadian securities laws that
reflect management’s current expectations, assumptions, and
estimates of future events, performance and economic conditions.
Such forward-looking statements rely on the safe harbor provisions
of Section 27A of the U.S. Securities Act of 1933 and Section 21E
of the U.S. Securities Exchange Act of 1934 and the safe harbor
provisions of applicable Canadian securities laws. Because such
statements are subject to risks and uncertainties, actual results
may differ materially from those expressed or implied by such
forward-looking statements. Words and phrases such as “anticipate,”
“believe,” “combined company,” “create,” “drive,” “expect,”
“forecast,” “future,” “growth,” “intend,” “hope,” “opportunity,”
“plan,” “potential,” “proposal,” “synergies,” “unlock,” “upside,”
“will,” “would,” and similar words and phrases are intended to
identify forward-looking statements. These forward-looking
statements may include, but are not limited to, statements
concerning: uncertainties as to whether any definitive offer will
be made by Riot or the Company will accept any offer made by Riot;
whether the Company will enter into discussions with Riot regarding
the proposed combination of Riot and the Company; the outcome of
any such discussions, including the possibility that the terms of
any such combination will be materially different from those
described herein; the conditions to the completion of any
combination, including the receipt of Company shareholder approval
and the receipt of all required regulatory approvals; the future
performance, results of operations, liquidity and financial
position of each of Riot, the Company and the company resulting
from the combination of Riot and the Company; the possibility that
the combined company may be unable to achieve expected synergies
and operating efficiencies within the expected timeframes or at
all; the integration of the Company’s operations with those of Riot
and the possibility that such integration may be more difficult,
time-consuming and costly than expected or that operating costs and
business disruption may be greater than expected in connection with
the proposed transaction. Such forward-looking statements are not
guarantees of future performance or actual results, and readers
should not place undue reliance on any forward-looking statement as
actual results may differ materially and adversely from
forward-looking statements. Detailed information regarding the
factors identified by the management of Riot, which they believe
may cause actual results to differ materially from those expressed
or implied by such forward-looking statements in this press
release, may be found in Riot’s filings with the U.S. Securities
and Exchange Commission (the “SEC”), including the risks,
uncertainties and other factors discussed under the sections
entitled “Risk Factors” and “Cautionary Note Regarding
Forward-Looking Statements” of Riot’s Annual Report on Form 10-K
for the fiscal year ended December 31, 2023, filed with the SEC on
February 23, 2024, and the other filings Riot has made or will make
with the SEC after such date, copies of which may be obtained from
the SEC’s website at www.sec.gov. All forward-looking statements
contained herein are made only as of the date hereof, and Riot
disclaims any intention or obligation to update or revise any such
forward-looking statements to reflect events or circumstances that
subsequently occur, or of which Riot hereafter becomes aware,
except as required by applicable law.
No Offer or Solicitation
This press release is for informational purposes only and is not
intended to and does not constitute an offer to sell or the
solicitation of an offer, or an intention to offer, to subscribe
for or buy or an invitation to purchase or subscribe for any
securities, nor shall there be any sale, issuance or transfer of
securities in any jurisdiction in contravention of applicable law.
Such an offer to purchase securities would only be made pursuant to
a registration statement, prospectus, tender offer, takeover bid
circular, management information circular or other regulatory
filing filed by Riot with the SEC and available at www.sec.gov or
filed with applicable Canadian securities regulatory authorities on
SEDAR+ and available at www.sedarplus.ca. This press release is not
intended to, and does not, solicit a proxy from any shareholder of
the Company. Such a solicitation of proxies would only be made
pursuant to a proxy circular filed with applicable Canadian
securities regulatory authorities on SEDAR+ and available at
www.sedarplus.ca or pursuant to an exemption from the proxy
solicitation rules under applicable Canadian securities law.
Important Information for Investors
This press release relates to, among other things, a proposal
that Riot has made for a business combination transaction with the
Company. In furtherance of this proposal and subject to future
developments, Riot (and, if applicable, the Company) may file one
or more registration statements, prospectuses, management
information circulars, proxy statements, proxy circulars, tender
offers, takeover bid circulars or other documents with the SEC and
applicable Canadian securities regulatory authorities. This press
release is not a substitute for any registration statement,
prospectus, management information circular, proxy statement, proxy
circular, tender offer, takeover bid circular or other document
(collectively, “Regulatory Filings”) Riot and/or the Company
may file with the SEC and/or applicable Canadian securities
regulatory authorities in connection with the proposed transaction.
INVESTORS AND SECURITY HOLDERS OF RIOT AND THE COMPANY ARE URGED TO
READ EACH REGULATORY FILING WHEN AND IF FILED BY RIOT AND/OR THE
COMPANY WITH THE SEC AND/OR APPLICABLE CANADIAN SECURITIES
REGULATORY AUTHORITIES CAREFULLY IN THEIR ENTIRETY IF AND WHEN THEY
BECOME AVAILABLE AS THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT
RIOT, THE COMPANY, THE PROPOSED TRANSACTION AND RELATED MATTERS.
Any proxy circular, takeover bid circular, management information
circular, prospectus or other applicable Regulatory Filing (if and
when filed) will be mailed to shareholders of the Company (if and
when required to be mailed by applicable law). Investors and
security holders will be able to obtain free copies of Regulatory
Filings (if and when available) and other documents filed by Riot
with the SEC and available at www.sec.gov, and on the “Investor
Relations” page of Riot’s corporate website, www.Riotplatforms.com.
Investors and security holders will be able to obtain free copies
of any documents filed with applicable Canadian securities
regulatory authorities by Riot on SEDAR+ at www.sedarplus.ca, and
on the “Investor Relations” page of Riot’s corporate website,
www.Riotplatforms.com.
This press release is neither a solicitation of a proxy nor a
substitute for any proxy statement or other filings that may be
made with the SEC or Canadian securities regulatory authorities.
Nonetheless, Riot and its directors and executive officers and
other members of management and employees may be deemed to be
participants in the solicitation of proxies in respect of the
proposed transaction. You can find information about Riot’s
executive officers and directors in Riot’s Annual Report on Form
10-K for the year ended December 31, 2023. Additional information
regarding the interests of such potential participants will be
included in one or more Regulatory Filings filed with the SEC and
Canadian securities regulatory authorities if and when they become
available. These documents (if and when available) may be obtained
free of charge from the SEC’s website at www.sec.gov, on SEDAR+ at
www.sedarplus.ca and by visiting the “Investor Relations” page of
Riot’s corporate website, www.Riotplatforms.com.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240605673049/en/
Investor Contacts: Phil McPherson 303-794-2000 ext. 110
IR@Riot.Inc Okapi Partners Bruce Goldfarb / Chuck Garske, (877)
285-5990 info@okapipartners.com Media Contact: Longacre
Square Partners Joe Germani / Dan Zacchei
jgermani@longacresquare.com / dzacchei@longacresquare.com
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