Twitter’s SEC filing on Musk ‘poison pill’ includes another ‘420’ pot reference

Twitter’s Board of Directors Took his “high” stakes fight with Elon Musk On Monday — at another level — an SEC filing detailing a “poison pill” measure against the billionaire’s takeover bid appears to have slashed the reference to cannabis to “420.”

Twitter’s filing A detailed description of its “Shareholder Rights Plan” is included. The defensive strategy is intended to limit Musk’s ability to acquire a large stake in the company if Musk owns more than 15% ownership – effectively weakening his position, by making discounted Twitter shares available for purchase.

According to the filing, if Musk or other shareholders were to hold more than a 15% stake, the other shareholders could exercise the right to pay $210 to acquire more stock in the company.

The filing notes that a stock purchased at a $210 “exercise price” would have a “current market value of twice the exercise price” — or $420.

It’s unclear whether Twitter’s board intends to make the reference, first seen Bloomberg columnist Matt Levine, The number “420” has a distinct significance for pot smokers—and for Musk, who has slipped this figure into his buyout offers on more than one occasion.

Twitter did not immediately return Post’s request for comment on the filing.

Last week, Musk revealed that he had offered to buy Twitter for about $43 billion, or $54.20 per share. Social media users quickly caught on to the fact that the billionaire made another weed joke.

“I am offering to buy 100% of Twitter for $54.20 per share in cash the day before I begin investing in Twitter, and a 38% premium the day before the public announcement of my investment,” Musk said in a letter Twitter board chairman Brett Taylor detailed the proposal.

And in the days before Musk’s deal to take a seat on Twitter’s board, the Tesla CEO joked about smoking pot during company meetings — a meme from an infamous 2018 appearance on “The Joe Rogan Experience.” Posted in which he and the podcast host shared a joint.

“Twitter’s next board meeting is about to sparkle,” the meme said.

Elon Musk's tweet and Twitter logo
Twitter took a “poison pill” measure to defend against Elon Musk’s takeover bid.
The Associated Press

The earlier “420” reference caused legal trouble for Musk. In August 2018, the billionaire tweeted that he was “considering taking Tesla private for $420” with “funds secured”. At the time, Tesla was facing financial troubles that threatened bankruptcy.

The tweet prompted the SEC to sue Musk for allegedly making false or misleading statements. In a later court filing, the agency said Musk’s use of “$420” was a weed reference meant to impress his on-and-off girlfriend, electronic pop star Grimes.

In a court filing last Friday, Tesla shareholders sued Musk over the tweet, saying a judge agreed with his claims that he intentionally made false claims about funding.

Meanwhile, Twitter’s board has yet to Decide whether to accept Musk’s offer, The prospect of working for a billionaire has rankled many of the social media platform’s current employees.

“The Board adopted the Rights Agreement to protect stockholders from coercive or otherwise unreasonable acquisition tactics,” Twitter said in its filing. “In general terms, it works by imposing a significant penalty on any person or group that acquires 15 percent or more shares of common stock without the approval of the Board.”

Musk has called on the board to open the decision up to shareholders – arguing that it would be “completely unforgivable” if company executives ignored public will in making their choices.

Twitter’s board has also Faced with criticism from former CEO Jack Dorseywho slammed the unit for creating “inaction” in the company.

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