Argo Blockchain, a London-listed cryptocurrency mining firm, has secured a mortgage to finance a restructuring that’s “essential to keep away from an uncontrolled insolvency and liquidation”.
The Bitcoin miner introduced in its delayed 2024 monetary outcomes again in Might that there was a “important doubt” over its continued operations, with its shares briefly being suspended from buying and selling for not assembly monetary reporting necessities.
In an effort to keep away from liquidation, Argo Blockchain has proposed a restructuring plan that has seen chairman and director Matthew Shaw resign and a big capital injection from American group Growler Mining.
Growler will present a mortgage of as much as $7.5m (£5.5m) to facilitate the restructuring in addition to contributing cryptoassets with a e book worth of $25-30m to a subsidiary of the corporate.
The restructuring will doubtless consequence within the cancellation of its London itemizing, although Argo Blockchain stated it will search to take care of its Nasdaq itemizing.
It expects to current its restructuring plan to the Excessive Courtroom of England and Wales by the top of August, with an anticipated efficient date earlier than 30 November.
“This transaction is the fruits of a months-long course of designed to protect Argo’s operations and maximise worth for Argo’s stakeholders,” stated chief govt Justin Nolan.
“The restructuring plan offers Argo a transparent path ahead with a considerably deleveraged steadiness sheet and a long-term strategic investor in Growler.”
Argo Blockchain listed publicly in London in 2020 and after months of progress achieved its peak share value of 282p in February 2021.
The corporate’s share value has since collapsed by greater than 99%, at present valued at 1p.
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