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LONDON - Argentex Group plc announced Thursday that trading in its ordinary shares has been suspended after its main trading subsidiary, Argentex LLP, failed to secure required funding to meet regulatory obligations.
The foreign exchange services provider revealed it was unable to obtain an additional secured Revolving Credit Facility that was needed to satisfy a new Individual Liquidity Guidance (ILG) level imposed by the Financial Conduct Authority (FCA) by July 15.
According to the company statement, Argentex LLP had previously entered into a Voluntary Requirement (VREQ) agreement with the FCA on June 26, which allowed it to continue servicing clients under specific parameters while working to meet the new liquidity requirements.
"The Company has not been able to secure that additional funding, nor does the Company have any other source of alternative funding or liquidity available to it, in the near future," Argentex stated in its announcement.
As a result of failing to meet the regulatory obligations outlined in the VREQ, Argentex LLP will cease all commercial and trading activity until the terms are satisfied.
The company indicated that trading in its ordinary shares will remain suspended pending further announcements, which it said would be made "in due course."
The announcement comes as the latest development for the financial services firm, which specializes in foreign exchange services for corporate and institutional clients.
Based on the press release statement, the company currently has no immediate alternative sources of funding or liquidity to address its regulatory requirements.
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