Argo Blockchain Suspends Trading In US Stocks For 24 Hours
- Earlier this month, corporate officials indicated that they were getting close to a restructuring without filing for bankruptcy.
- Their shares on the London Stock Exchange (ARB) and Nasdaq (ARBK), has requested a 24-hour suspension of trading in the United States.
Trading in United States stocks has been frozen by Argo Blockchain for the next twenty-four hours.
Argo Blockchain announced earlier this month that it was on the verge of reorganizing without declaring bankruptcy. Argo Blockchain, a crypto miner whose shares are traded on the London Stock Exchange (ARB) and Nasdaq (ARBK), has requested a 24-hour suspension of trading in the United States. The London-based firm, which has been in talks to raise financing, stated that it plans to issue a statement before the opening of trading on Wednesday.
On December 12, the company said that it was on the verge of restructuring without declaring bankruptcy. It stated at the time that it was in advanced talks to sell some of its assets and complete an equipment financing deal in order to strengthen its balance sheet and boost its liquidity.
Argo claimed that even if a company has not officially declared bankruptcy, it may not have enough money to fund its operations for the next month. It intends to increase liquidity by selling some of its properties and mining machinery. Argo Blockchain went on to state that, while it is seeking to avoid doing so, “there is no guarantee that such filing will be avoided.”
In any case, Argo has retained Berkeley Research to assess its options and McDermott Will & Emery LLP to provide legal guidance in an attempt to resolve its liquidity crisis. In late October, they announced that a deal to raise $27 million from a strategic investor had fallen through, causing the company’s shares to drop more than 70%. In early October, Argo announced a series of steps, including the sale of bitcoin mining devices, and its stock began to plummet. The company mined 198 bitcoins in November, down from 204 BTC in October, according to the November update.
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