Argo Blockchain PLC Announces Strategy/Company/Ops Update
Argo Blockchain has announced an update regarding its financial strategy on October 31, 2022. The company has terminated previous terms for a £24 million funding subscription and is seeking alternative financing options. To enhance liquidity, Argo sold 3,843 Bitmain S19J Pro machines for approximately £4.8 million, maintaining its total hashrate capacity at 2.5 EH/s. However, there are concerns as Argo warns it may become cash flow negative if new financing is not secured, potentially leading to operational curtailment.
- Sold 3,843 Bitmain S19J Pro machines for ~£4.8 million, maintaining liquidity.
- Total hashrate capacity remains stable at 2.5 EH/s.
- Cancelled £24 million funding subscription, indicating potential financial instability.
- Risks of becoming cash flow negative if alternative financing is not secured.
October Update
LONDON, UK / ACCESSWIRE / October 31, 2022 / Argo Blockchain plc, a global leader in cryptocurrency mining (LSE:ARB)(NASDAQ:ARBK), provides the following announcement regarding certain strategic actions that were announced on 7 October 2022.
As previously disclosed, the Company signed a non-binding LOI with a strategic investor to raise approximately £24 million (
The Company has also taken steps to further maximize liquidity and preserve cash. The Company sold 3,843 new-in-box Bitmain S19J Pro machines, representing ~384 PH/s of total hashrate capacity, for cash proceeds of ~£4.8 million (
No Assurance of Definitive Agreements
While Argo is exploring other financing opportunities, there can be no assurance that any definitive agreements will be signed or that any transactions will be consummated. Should Argo be unsuccessful in completing any further financing, Argo would become cash flow negative in the near term and would need to curtail or cease operations. The Company is endeavoring to complete such financing transactions to provide the Company with working capital sufficient for its present requirements, that is for at least the next twelve months from the date of this announcement.
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 risk that the Company may be unable 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 |
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Peter Wall Chief Executive | via Tancredi +44 203 434 2334 |
finnCap Ltd |
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Corporate Finance Jonny Franklin-Adams Seamus Fricker Joint Corporate Broker Sunila de Silva | +44 207 220 0500 |
Tennyson Securities |
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Joint Corporate Broker Peter Krens | +44 207 186 9030 |
OTC Markets |
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Jonathan Dickson | +44 204 526 4581 +44 7731 815 896 |
Tancredi Intelligent Communication UK & Europe Media Relations |
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Salamander Davoudi Fabio Galloni-Roversi Monaco Nasser Al-Sayed | +44 7957 549 906 +44 7888 672 701 +44 7915 033 739 |
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.
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SOURCE: Argo Blockchain PLC
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https://www.accesswire.com/723009/Argo-Blockchain-PLC-Announces-StrategyCompanyOps-Update
FAQ
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