Argo Blockchain Announces Proposed Restructuring Plan
Why we think this is neutral
The RNS announcement outlines a proposed restructuring plan for Argo Blockchain, including a loan facility, equity issuance, and changes to the board of directors. As this is a general update without specific financial figures or trading performance, the sentiment is assessed as neutral.
Key Points
- Argo Blockchain proposes a restructuring plan to address its capital needs
- Plan includes a $7.5 million loan facility from Growler Mining, LLC
- Existing bondholders to receive new Argo shares in exchange for their claims
- Growler to acquire majority stake in Argo through the restructuring
- Restructuring subject to court and shareholder approvals
- Argo's Main Market listing likely to be cancelled, but Nasdaq listing to be maintained
Summary
Argo Blockchain plc (LSE: ARB; NASDAQ: ARBK) has announced a proposed restructuring plan to resolve its short and medium-term capital needs. The plan includes a senior secured multi-draw term loan facility from Growler Mining, LLC, conversion of existing bonds into equity, and Growler acquiring a majority stake in the company. The restructuring is subject to court approval and shareholder approval for a waiver of the mandatory takeover offer. If successful, the plan would result in Argo's Main Market listing being cancelled, though it intends to maintain its Nasdaq listing.