World Crypto Global
- Written by: Damian Chmiel
- Tue, 30 Jul 2024
- Israel
Bitcoin miner ArgoBlockchain, listedon both Wall Street and the London Stock Exchange (LSE), has announced a £6.5 million private placement agreement with aninstitutional investor. The deal involves the issuance of 57,800,000 ordinaryshares at £0.1125 per share on the LSE, along with warrants to purchase anadditional 57,800,000 shares at the same price.Argo Blockchain Secures£6.5 Million in Private Placement DealTheplacement price represents a premium to Argo's recent trading averages and a10% discount to the closing price on July 29. H.C. Wainwright & Co. isserving as the exclusive placement agent for the transaction.Argo plansto use the net proceeds for working capital, general corporate purposes, anddebt repayment. The company expects the placement shares to be admitted totrading on the London Stock Exchange's Main Market around July 31, 2024.The netproceeds of the Private Placement will be used by the Company for workingcapital 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, 2024Followingthe 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 equalranking with existing ordinary shares.On the Nasdaq,the miner's shares (ARBK) tested the $2 level during Monday's session, thehighest 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 stronglyto the latest information on Tuesday and are trading around 11 pence, aftertesting the 13.5 pence level on Monday, which was the high from April.Crypto Miner ReducedLossesArgoBlockchain operates cryptocurrency mining facilities in Quebec and Texas, witha focus on sustainable practices powered by renewable energy. Recent financialreports from Argo paint a picture of improving performance and strategicadjustments in the face of industry headwinds. In itslatest quarterly update, the company reported a revenue of $16.8 million,marking a 4% increase from the previous quarter and an impressiveyear-over-year growth of nearly 50%. This uptick in revenue was accompanied bya substantial reduction in net loss, which decreased to $3.2 milliona thirdof what it was in the prior period.We exitedthe Bitcoin halving with cash of over $12 million, Q1 debt reduction of over$12 million and streamlined Quebec operations resulting from the sale ofMirabel, commented Thomas Chippas, the Chief Executive Officer of Argo.We are enthusiastic about Argo's future growth and development and arededicated to delivering value to our shareholders.Lookingback at the full-year results for 2023, Argo demonstrated resilience in achallenging market environment. The company managed to achieve a modest grossprofit. In addition, it saw an 85% reduction in losses compared to the previousyear, indicating progress in the company's efforts to streamline operations andimprove 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.
