Argo Blockchain, a London-listed cryptocurrency mining company, has secured a loan to finance a restructuring that is “necessary to avoid an uncontrolled insolvency and liquidation”.
The Bitcoin miner announced in its delayed 2024 financial results back in May that there was a “significant doubt” over its continued operations, with its shares briefly being suspended from trading for not meeting financial reporting requirements.
In an effort to avoid liquidation, Argo Blockchain has proposed a restructuring plan that has seen chairman and director Matthew Shaw resign and a significant capital injection from American group Growler Mining.
Growler will provide a loan of up to $7.5m (£5.5m) to facilitate the restructuring as well as contributing cryptoassets with a book value of $25-30m to a subsidiary of the company.
The restructuring will likely result in the cancellation of its London listing, though Argo Blockchain said it would seek to maintain its Nasdaq listing.
It expects to present its restructuring plan to the High Court of England and Wales by the end of August, with an anticipated effective date before 30 November.
“This transaction is the culmination of a months-long process designed to preserve Argo’s operations and maximise value for Argo’s stakeholders,” said chief executive Justin Nolan.
“The restructuring plan gives Argo a clear path forward with a significantly deleveraged balance sheet and a long-term strategic investor in Growler.”
Argo Blockchain listed publicly in London in 2020 and after months of growth achieved its peak share price of 282p in February 2021.
The company’s share price has since collapsed by more than 99%, currently valued at 1p.
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