Argo Blockchain Finalizes $40 Million Financing Arrangement to Boost M&A Activities

This Bitcoin mining enterprise is publicly listed on Nasdaq. Argo Blockchain The company revealed it has agreed to a non-binding term sheet for a senior secured convertible loan of up to $40 million. The agreement includes an initial funding installment of $15 million, with the possibility of an additional $25 million dispersed over the next year and a half.

According to Argo, these funds will be directed towards upgrading mining technology at their Quebec facility, improving their financial standing, and examining viable merger and acquisition prospects.

"We are confident that this funding will facilitate Argo's profitable expansion and bolster our financial health,\" stated Matt Shaw, the Chairman of the Board, in an official communiqué. \"Our team is actively collaborating with the Investor Group to complete due diligence efficiently and refine our operational strategy promptly. We eagerly anticipate sharing further developments as they unfold,\" he added.

Funding Structure of Argo Blockchain Includes Non-Amortizing Loans with an 8% Interest Rate and 25% Conversion Premium

The suggested financing arrangement will be characterized as non-amortizing debt, with an approximate interest rate of 8% and a 25% conversion premium calculated from Argo's share price just prior to the finalization of the agreement. The finance will likely be contributed by up to three multinational institutional investors, inclusive of 30% warrant coverage, with warrants subject to a premium relative to the closing share price. Once the definitive agreements are finalized and shareholders give their consent, the Investor Group will seat three representatives on Argo’s board.

Moreover, Argo has allocated an initial 20-day exclusive negotiation period for the Investor Group, with extensions being negotiated in good faith contingent on the status of discussions. The company has accepted a break fee of $150,000 under specific conditions. Securing this financing will depend on obtaining shareholder approval and a waiver, and Argo plans to issue a prospectus to assist in the listing of shares associated with the financing and related warrants.

Argo Blockchain plc is a publicly listed company specializing in blockchain technology, particularly in vast-scale cryptocurrency mining. The firm operates a mining facility in Quebec and has offices in the U.S., Canada, and the UK. Demonstrating a strong commitment to sustainability, Argo primarily powers its global operations using renewable energy sources. Notably, in 2021, it became the first crypto mining company to achieve a climate-positive status, signing the Crypto Climate Accord to reaffirm its dedication to environmentally conscious mining practices.