Argo Blockchain Funding Deal Boosts Shares

Argo Blockchain shares surged 16% after the company signed a non-binding term sheet for up to $40 million in senior secured convertible loans.

In a March 3 press release, the company revealed it had signed the term sheet on Feb. 25, which includes an initial $15 million tranche and up to $25 million more over 18 months. With this funding, Argo Blockchain aims to upgrade its Bitcoin mining fleet in Quebec, Canada, strengthen its balance sheet, and explore mergers and acquisitions.

Loan Details

The loans will carry an 8% interest rate and a 25% conversion premium based on the company’s share price prior to signing. Additionally, investors will receive warrants equating to 30% of the loan amount at a premium price. Although the identity of the backers remains unclear, Argo Blockchain confirms the deal involves up to three multinational institutional investors, who will gain three board seats upon finalization and shareholder approval.

> “The Financing is expected to be funded by up to three multinational institutional investors and will include 30% warrant coverage, also at a premium to the closing price. The Investor Group will have three seats on the board upon completion of definitive documents and shareholder approval.”
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> — Argo Blockchain

Chairman’s Remarks

In comments regarding the funding, Argo Blockchain chairman Matt Shaw stated that the deal will “allow profitable growth at Argo and strengthen our balance sheet.” Following the announcement, the company’s shares climbed 16% to $0.45 in pre-market trading, according to data from Yahoo Finance.

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