Argo Blockchain Raises £5.7 Million In Share Sale to Reduce Debt, Share Price Declines
- Argo Blockchain raises £5.7 million through a share sale to reduce debt.
- The sale includes institutional and retail investors, with gross proceeds of approximately £5.75 million.
- Despite the successful fundraising, Argo Blockchain’s share price declined by over 20%.
Argo Blockchain, a global leader in cryptocurrency mining, has successfully raised £5.7 million ($7.5 million) through the sale of new shares.
The funds raised will be used to reduce the company’s outstanding debt, which stood at £59.1 million prior to the sale. The sale included a private placing that raised £5.134 million and a public sale that raised £616,000.
A total of 51,340,000 new ordinary shares were placed with institutional investors at a price of 10 pence per share, while retail investors subscribed for 6,160,000 new ordinary shares at the same price. The capital raise, comprising both the placing and retail offer, was oversubscribed by new and existing shareholders. In total, 57,500,000 new ordinary shares were issued, raising gross proceeds of approximately £5.75 million.
The placing price represents a discount of around 14% to the 30-day volume weighted average price (VWAP) of Argo stock and a discount of 25.92% to the closing mid-price on July 18, 2023. The newly issued shares represent approximately 12.03% of the company’s existing issued ordinary share capital.
Applications have been made for the admission of the new ordinary shares to the standard listing segment of the Official List of the Financial Conduct Authority (FCA) and to trading on the main market for listed securities of the London Stock Exchange (LSE). The admission is expected to become effective on or before July 24, 2023.
Earlier this year, Argo Blockchain managed to avoid bankruptcy by selling its Helios mining facility in Texas and securing a $35 million loan from Michael Novogratz’s crypto-focused financial-services firm.
Following the announcement of the share sale, Argo Blockchain’s shares experienced a decline of over 21.5%, trading at 10.6 pence at the time of writing.
The successful capital raise will help Argo Blockchain strengthen its financial position and continue its operations in the competitive cryptocurrency mining industry.
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