Superstate founder Robert Leshner’s takeover bid for liquor firm thwarted by 'poison pill,' but crypto pivot moves ahead

As the result of a “poison pill” maneuver, Robert Leshner’s experimental hostile takeover of “a low market cap” company — in a bid to redirect its efforts into a crypto-buying powerhouse — appears to have partially failed, according to an announcement on Thursday. 

On July 14, Leshner announced that he had become the majority shareholder of a “low market cap liquor company with a somewhat shady history,” called LQR House Inc. (ticker: YHC), after purchasing 56.9% of its shares on the open market. 

The Compound and Superstate founder said at the time that he planned to replace the board and “help the company explore new strategies,” including loading up on cryptocurrencies. The move appears to be part of a growing trend among publicly traded firms to build crypto treasuries, largely financed through equity and debt financing arrangements. 

However, that same day, LQR House’s leadership began issuing new equity in an apparent attempt to dilute Leshner’s newly acquired stake in the firm. Such a maneuver by a company is known on Wall Street as a “poisoin pill.” 

“I’ve just seen LQR House’s prospectus supplement that was publicly filed today,” Leshner said Monday on X. “I disagree with what LQR House is doing (selling shares) with respect to the ATM offering, which I don't think is productive, and I’m consulting with lawyers.”

Leshner added that he may “lose all my investment” and warned his X followers to “please be extremely careful with any low market cap companies.” On Thursday, Leshner noted that his ownership of the firm had been diluted to around 8.7%. 

According to a direct message from Leshner, LQR House diluted its shares by almost 6 million, “from 1.06m shares to 6.8” million. He noted that he had been relying on “public disclosures of how many shares of the company were outstanding” and ambiguous “numbers reported in brokerage apps,” which had become “increasingly out of date” as the week went on.

“Personally investing in $YHC was an experiment with an uncertain outcome,” Leshner said on Thursday, noting that his plan was “partially” successful. “My original plan was to buy the company outright, and put it on track to build a crypto treasury strategy under new leadership.”

In a press release, LQR House notes that it has a new “strategic intent” to add “cryptocurrency and blockchain technology into its long-term business model.” Leshner also announced that he is no longer pursuing a controlling stake in the company. However, he will continue to advise on its crypto strategy, including plans to invest in mining infrastructure through a partnership with Bitmain and Polaris Capital.

“We believe that this marks a defining moment for LQR House,” Sean Dollinger, CEO of LQR House, said in a statement. “We’re not pivoting-we’re expanding. Our vision is to build a platform that combines the strength of ecommerce with the power of digital assets. With the support of experienced crypto leaders and our engaged shareholder base, we’re positioning LQR House to be at the forefront of the next wave of internet-native consumer brands.”

On X, Leshner noted the firm now has $20 million in fresh capital “to follow through on its plans and actually create a crypto treasury.”