Trump announces trade deal with EU following months of negotiations
LONDON - Cryptocurrency miner Argo Blockchain (LON:ARB) plc (LSE:ARB; NASDAQ:ARBK) announced Monday a proposed restructuring plan to address its financial challenges and resolve its capital needs.
The company, which had previously disclosed in its 2024 annual results that "a material uncertainty exists" regarding its ability to continue as a going concern, has entered into a restructuring plan support agreement with Growler Mining.
Under the agreement, Growler will provide a senior secured multi-draw term loan of up to $7.5 million to fund Argo’s operations until the restructuring is completed. The loan will bear interest at SOFR plus 6% per annum, with a minimum rate of 10%.
The proposed restructuring, which requires approval from the High Court of England and Wales, would result in Growler owning at least 80% of Argo’s issued shares. Existing equity holders would have their shares canceled and receive only a nominal payment based on their holdings.
Argo’s bondholders, who collectively hold approximately $40 million in bonds, would receive new common stock in the company as full settlement of their claims.
As part of the deal, Growler will contribute crypto assets valued at $25-30 million to Argo’s U.S. subsidiary in exchange for ownership interests, which will then be contributed to Argo in exchange for additional equity.
The restructuring plan would likely result in Argo’s delisting from the London Stock Exchange (LON:LSEG), though the company intends to maintain its Nasdaq listing.
"This transaction is the culmination of a months-long process designed to preserve Argo’s operations and maximize value for Argo’s stakeholders," said Justin Nolan, Chief Executive Officer, in the press release statement.
The company also announced that Matthew Shaw has resigned as Chairman and Director, with Non-Executive Director Maria Perrella appointed as the new Chair of the Board.
Argo expects to present the restructuring plan to the Court by August 29, 2025, with implementation targeted before November 30, 2025.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.