Dow Jones Newswires: Argo Blockchain shares collapse as planned fundraising falls through
Argo Blockchain PLC shares fell Monday after it said it no longer expects to carry out a share subscription with a strategic investor, and warned it would need to complete further financing to avoid curtailing or ceasing operations.
The London-listed cryptocurrency mining company said it no longer expects to raise 24 million pounds ($27.9 million) through a subscription for ordinary shares under the same terms, first disclosed on Oct. 7, and said it was exploring other financing opportunities.
Argo said it has taken steps to further maximize liquidity and preserve cash, including selling 3,843 new-in-box machines for GBP4.8 million. The machines were the last of a batch scheduled for installation in October.
While the company explores other financing opportunities, it can’t be assured that any definitive agreements will be signed. If it is unsuccessful, it will be cash-flow negative in the near term and would need to slow of stop operations.
Argo said it is endeavoring to complete financing operations to secure sufficient working capital for present requirements.
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