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Listed both
on Wall Street and the London Stock Exchange (LSE) Bitcoin miner Argo
Blockchain, has announced a £6.5 million private placement agreement with an
institutional investor. The deal involves the issuance of 57,800,000 ordinary
shares at £0.1125 per share on the LSE, along with warrants to purchase an
additional 57,800,000 shares at the same price.
Argo Blockchain Secures
£6.5 Million in Private Placement Deal
The
placement price represents a premium to Argo’s recent trading averages and a
10% discount to the closing price on July 29. H.C. Wainwright & Co. is
serving as the exclusive placement agent for the transaction.
Argo plans
to use the net proceeds for working capital, general corporate purposes, and
debt repayment. The company expects the placement shares to be admitted to
trading on the London Stock Exchange’s Main Market around July 31, 2024.
“The net
proceeds of the Private Placement will be used by the Company for working
capital and general corporate purposes, including the repayment of indebtedness,”
the company commented.
$ARBK Argo Blockchain Secures £6.5M From Institutional Investor Through Private Placement.The net proceeds of the Private Placement will be used by the Company for working capital and general corporate purposes, including the repayment of indebtedness.$TKNO $JTAI $IMNN $TWOU
— sammler (@sammler909) July 30, 2024
Following
the placement, Argo’s total issued share count will increase to 636,352,148.
The newly issued shares and any shares from exercised warrants will have equal
ranking with existing ordinary shares.
On the Nasdaq,
the miner’s shares (ARBK) tested the $2 level during Monday’s session, the
highest in over three months. However, before the session ended, they fell to
$1.6. Meanwhile, on the LSE (ARB), the company’s shares did not react strongly
to the latest information on Tuesday and are trading around 11 pence, after
testing the 13.5 pence level on Monday, which were the highs from April.
Crypto Miner Reduced
Losses
Argo
Blockchain operates cryptocurrency mining facilities in Quebec and Texas, with
a focus on sustainable practices powered by renewable energy. Recent financial
reports from Argo paint a picture of improving performance and strategic
adjustments in the face of industry headwinds.
In its
latest quarterly update, the company reported a revenue of $16.8 million,
marking a 4% increase from the previous quarter and an impressive
year-over-year growth of nearly 50%. This uptick in revenue was accompanied by
a substantial reduction in net loss, which decreased to $3.2 million – a third
of what it was in the prior period.
“We exited
the Bitcoin halving with cash of over $12 million, Q1 debt reduction of over
$12 million and streamlined Quebec operations resulting from the sale of
Mirabel,” commented Thomas Chippas, the Chief Executive Officer of Argo, said.
“We are enthusiastic about Argo’s future growth and development and are
dedicated to delivering value to our shareholders.”
Looking
back at the full-year results for 2023, Argo demonstrated resilience in a
challenging market environment. The company managed to achieve a modest gross
profit. In addition, it saw an 85% reduction in losses compared to the previous
year, indicating progress in the company’s efforts to streamline operations and
improve financial health.
During the same period, it announced the sale of its data center in Mirabel, Canada.
This article was written by Damian Chmiel at www.financemagnates.com.
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