Argo Blockchain PLC Announces Restoration of Trading on the LSE
Argo Blockchain has announced that trading of its shares on the London Stock Exchange was suspended due to mistakenly published material suggesting a Chapter 11 bankruptcy filing. The company is actively negotiating asset sales and equipment financing to bolster its cash flow, aiming to avoid bankruptcy. The Financial Conduct Authority has been requested to restore the company's listing as soon as feasible. Although the company remains hopeful about its financial negotiations, the risk of insufficient cash looms large, necessitating careful observation by investors.
- Engaged reputable financial and legal advisers to assist in asset sales and financing.
- Actively negotiating to improve liquidity, potentially avoiding bankruptcy.
- At risk of insufficient cash to support operations within the next month.
- Trading suspended on both the London Stock Exchange and Nasdaq due to misleading information.
Restoration of Trading on the London Stock Exchange
LONDON, ENGLAND / ACCESSWIRE / December 12, 2022 / Argo Blockchain plc ("Argo" or "the Company"), a global leader in cryptocurrency mining (LSE:ARB)(Nasdaq:ARBK), makes the following announcement:
The Company is at risk of having insufficient cash to support ongoing business operations within the next month. The Company is in advanced negotiations with a third party to sell certain assets and engage in an equipment financing transaction that the Company believes will strengthen its balance sheet and improve its liquidity. The Company is hopeful that it will be able to consummate the transaction outside of a voluntary Chapter 11 bankruptcy filing in the United States, although there is no assurance that the Company can avoid such a filing. The Company engaged McDermott Will & Emery LLP as legal advisers, Berkeley Research Group, LLC as financial advisers, and Stifel GMP and its affiliate, Miller Buckfire & Co., LLC, as investment bankers, to assist the Company with analysing these strategic options.
As part of this process, certain draft materials were inadvertently published as a test page on the Company's website. The inadvertently published materials, which implied that the Company was filing for Chapter 11 bankruptcy, led to the suspension of trading of the Company's securities on the London Stock Exchange and Nasdaq on Friday, 9 December 2022. Shareholders should note that the Company has not filed for bankruptcy at this time.
The Company has requested that the UK Financial Conduct Authority restore the listing of its ordinary shares and that is expected to happen as soon as practicable.
Inside Information and Forward-Looking Statements
This announcement contains inside information and includes forward-looking statements which reflect the Company's or, as appropriate, the Directors' current views, interpretations, beliefs or expectations with respect to the Company's financial performance, business strategy and plans and objectives of management for future operations. These statements include forward-looking statements both with respect to the Company and the sector and industry in which the Company operates. Statements which include the words "remains confident", "expects", "intends", "plans", "believes", "projects", "anticipates", "will", "targets", "aims", "may", "would", "could", "continue", "estimate", "future", "opportunity", "potential" or, in each case, their negatives, and similar statements of a future or forward-looking nature identify forward-looking statements. All forward-looking statements address matters that involve risks and uncertainties because they relate to events that may or may not occur in the future, including the following risks among others: the contemplated transaction may not completed on anticipated terms or at all; the Company's insufficient cash may require it to file for bankruptcy in the future; and, in the event that the Company is required to file for bankruptcy, the Company may be unable to emerge from bankruptcy as a going concern,; and, the Company's inability to secure sufficient additional financing to meet its operating needs. Forward-looking statements are not guarantees of future performance. Accordingly, there are or will be important factors that could cause the Company's actual results, prospects and performance to differ materially from those indicated in these statements. In addition, even if the Company's actual results, prospects and performance are consistent with the forward-looking statements contained in this document, those results may not be indicative of results in subsequent periods. These forward-looking statements speak only as of the date of this announcement. Subject to any obligations under the Prospectus Regulation Rules, the Market Abuse Regulation, the Listing Rules and the Disclosure and Transparency Rules and except as required by the FCA, the London Stock Exchange, the City Code or applicable law and regulations, the Company undertakes no obligation publicly to update or review any forward-looking statement, whether as a result of new information, future developments or otherwise. For a more complete discussion of factors that could cause our actual results to differ from those described in this announcement, please refer to the filings that Company makes from time to time with the United States Securities and Exchange Commission and the United Kingdom Financial Conduct Authority, including the section entitled "Risk Factors" in the Company's Registration Statement on Form F-1.
For further information please contact:
Argo Blockchain | |
Peter Wall Chief Executive | |
finnCap Ltd | |
Corporate Finance Jonny Franklin-Adams Seamus Fricker Joint Corporate Broker Sunila de Silva | +44 207 220 0500 |
Tennyson Securities | |
Joint Corporate Broker Peter Krens | +44 207 186 9030 |
Tancredi Intelligent Communication UK & Europe Media Relations | |
Salamander Davoudi Fabio Galloni-Roversi Monaco Nasser Al-Sayed |
About Argo:
Argo Blockchain plc is a dual-listed (LSE: ARB; NASDAQ: ARBK) blockchain technology company focused on large-scale cryptocurrency mining. With its flagship mining facility in Texas, and offices in the US, Canada, and the UK, Argo's global, sustainable operations are predominantly powered by renewable energy. In 2021, Argo became the first climate positive cryptocurrency mining company, and a signatory to the Crypto Climate Accord. Argo also participates in several Web 3.0, DeFi and GameFi projects through its Argo Labs division, further contributing to its business operations, as well as the development of the cryptocurrency markets. For more information, visit www.argoblockchain.com.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
SOURCE: Argo Blockchain PLC
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FAQ
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