Argo Blockchain plc, a cryptocurrency mining firm has announced that its shares will be restored for trading on the London Stock Exchange. This decision was made due to the organization’s risk of accumulating insufficient funds to support ongoing transactions within the next month. The firm has also explained that it will sell some of its equipment to avoid going bankrupt.
Argo asks UK financial sector to reinstate its ordinary stock Share
Argo Blockchain PLC stated late Monday that it had asked the UK Financial Sector Conduct Authority to reinstate its standard share listing on the London Stock Exchange.
According to the organization, they are at risk of needing more funds to support the ongoing business operations in the incoming month. The organization also stated that they believe that selling certain assets and entering into equipment funding will solidify its financial statement and increase its liquidity.
Moreover, there isn’t a guarantee that the Company will be capable of mitigating filing for voluntary Chapter 11 bankruptcy in the United States. Still, the Firm hopes that it will be able to complete the transaction without doing so.
Via an official press release, Argo said:
“The Company is at risk of having insufficient cash to support ongoing business operations within the next month. The Company is in advanced negotiations with a third party to sell certain assets and engage in an equipment financing transaction that the Company believes will strengthen its balance sheet and improve its liquidity. The Company is hopeful that it will be able to consummate the transaction outside of a voluntary Chapter 11 bankruptcy filing in the United States, although there is no assurance that the Company can avoid such a filing.”
To analyze these strategic options, the Company has hired investment bankers Stifel GMP and its affiliate Miller Buckfire & Co., LLC, legal counsel McDermott Will & Emery LLP, and financial counsel Berkeley Research Group, LLC. This team will help it to either evade filing for bankruptcy or with the process of declaring bankruptcy.
FCA reprimands Argo regarding its trading shares
In the press release, Argo claims that the FCA reprimanded trading of its shares on December 9 following the unintentional publication of certain draft materials—which suggested the firm was filing for Chapter 11 bankruptcy—as a test page on its website. During this process, the organization’s homepage unintentionally published some draft components as a test page.
Will Foxley, the content director at Compass Mining, tweeted a screenshot of the Argo Blockchain’s “special information for stakeholders” on December 9 regarding the Company’s impending bankruptcy on December 12.
As the crypto industry enters a deeper crypto winter, not only cryptocurrencies but also crypto-related enterprises are being depleted of liquidity. Bitcoin had dropped by 65% since the year’s commencement, and many other coins followed closely behind it to suffer complete collapses, including Luna, which had lost all of its value.