LONDON - Argo Blockchain plc (LSE: ARB; NASDAQ: ARBK), a global leader in cryptocurrency mining, announced today a private placement deal with an institutional investor, amounting to approximately £6.5 million. The agreement includes the issuance of 57,800,000 ordinary shares and warrants to purchase an equivalent number of shares.
The placement shares are priced at £0.1125 each, a premium over the 30, 60, and 90-day volume-weighted average price (VWAP), and at a 10% discount to the closing price on the London Stock Exchange as of Monday. The accompanying warrants have an exercise price equal to the placement shares and are exercisable over a five-year period.
H.C. Wainwright & Co. is serving as the exclusive placement agent for the transaction. The net proceeds from the private placement are earmarked for general corporate purposes, which include working capital and repayment of existing debts.
The placement shares and any shares issued upon warrant exercise are expected to be admitted to the Official List and to trading on the London Stock Exchange's Main Market around Wednesday, July 31, 2024. Post-admission, the total issued ordinary shares of Argo Blockchain will increase to 636,352,148, with the same number of voting rights.
This private placement is not open to the public and is not registered under the United States Securities Act of 1933. Consequently, the securities may not be offered or sold in the United States without registration or an exemption from registration.
The forward-looking statements in this announcement highlight the company's expectations for the private placement's completion and the intended use of net proceeds. These statements are based on current beliefs and assumptions and are subject to risks and uncertainties that could cause actual results to differ materially.
Argo Blockchain is known for its focus on sustainable cryptocurrency mining operations, primarily powered by renewable energy. The company has been recognized as the first climate-positive cryptocurrency mining company and is a signatory to the Crypto Climate Accord.
This news is based on a recent SEC filing by Argo Blockchain plc.
InvestingPro Insights
As Argo Blockchain plc navigates its latest private placement deal, current and prospective investors might find the following real-time data and InvestingPro Tips from InvestingPro useful in evaluating the company's financial health and market performance:
- The company's market capitalization stands at a modest $92.15 million, reflecting its position in the market.
- Argo Blockchain's Price/Book ratio, as of the last twelve months leading up to Q1 2024, is 11.91, indicating a premium valuation compared to the company's book value.
- Despite not paying dividends, Argo Blockchain has shown a strong return over the last month with a 42.61% price total return, showcasing recent investor confidence.
InvestingPro Tips highlight that Argo Blockchain has a high shareholder yield and the valuation implies a strong free cash flow yield. However, the company's stock price movements have been quite volatile, and analysts do not anticipate profitability this year. Moreover, short-term obligations exceed liquid assets, which could be a liquidity concern for investors. For those interested in a more in-depth analysis, there are additional 10 InvestingPro Tips available, which can provide further insights into Argo Blockchain's financial and market performance.
Investors seeking to leverage these insights and tips can use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, offering a more comprehensive understanding of the company's prospects.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.