OCMT Chokes On Bitfarms 15 Per Cent Poison Pill

The Ontario Capital Markets Tribunal (OCMT) cease traded the Bitfarms Ltd. (Bitfarms) shareholder rights plan pursuant to its public interest powers. The OCMT's decision found the Plan "undermined, in a real and substantial way, the principles underlying the take-over bid regime." The reasons for the decision provide important insights into the use of shareholder rights plans to prevent hostile take-over bids.

What you need to know

• The purpose of the take-over bid regime is to provide certainty and predictability to capital markets participants, and a shareholder rights plan which is a significant departure from the standards set is considered to undermine the principles of the regime.