Sale of data center in Mirabel, Quebec completed
Allotment of new shares
Capital and total number of voting rights
LONDON, UK / ACCESSWIRE / March 28, 2024 / Argo Blockchain plc (LSE:ARB)(NASDAQ:ARBK), a global leader in cryptocurrency mining, announces the completion of the previously announced sale of its data center in Mirabel, Quebec (the “Mirabel Facility”) Did. The total consideration is $6.1 million (the “Transaction”).
The net proceeds from this transaction will be used first to repay Mirabell Facilities’ outstanding mortgage loan of $1.4 million, with the remainder used to repay debt owed to Galaxy Digital Holdings, Ltd. (“Galaxy”) (TSX:GLXY). I did. As of March 28, 2024, Galaxy’s outstanding debt is $12.8 million, reflecting the payment to Galaxy from the proceeds of this transaction and including the regular course monthly amortization expense in March. This is a 63% reduction from Galaxy’s original debt balance of $35 million.
Unaudited debt balance:
|
millions of dollars |
interest rate |
September 30, 2023 |
December 31, 2023 |
Debt Reduction in Q1 2024 |
March 28, 2024 |
|||||||||||||||
|
senior notes |
8.75 |
% |
$ |
40.0 |
$ |
40.0 |
– |
$ |
40.0 |
|||||||||||
|
galaxy debt |
Sofra+11 |
% |
27.2 |
23.5 |
(10.7 |
) |
12.8 |
|||||||||||||
|
mirabell mortgage |
Prime +0.5 |
% |
1.6 |
1.5 |
(1.5 |
) |
– |
|||||||||||||
|
Baie Comeau Mortgage |
Prime +0.5 |
% |
1.5 |
1.4 |
(0.2 |
) |
1.2 |
|||||||||||||
|
total |
$ |
70.3 |
$ |
66.4 |
$ |
(12.4 |
) |
$ |
54.0 |
|||||||||||
Importantly, this transaction allows us to eliminate our balance sheet with minimal impact to our bottom line. The Company has completed the relocation and deployment of mining equipment from its Mirabel facility to its Baie Comeau, Quebec, facility and expects this integration to result in an annual reduction in non-mining operating expenses of $700,000.
Management commentary
Thomas Tsippas, CEO of Argo, said: “We are pleased to announce the completion of this transaction, which allows us to continue to execute on our strategy of strengthening our balance sheet and reducing non-mine operating expenses. “We have reduced our debt.” In the first quarter of 2024, he will increase by $12.4 million. Additionally, consolidating our Quebec fleet into our Baie Comeau facility will allow us to streamline our operations and make the most efficient use of our facilities and field teams. ”
Allotment of new shares
In addition, the Company has acquired 460,477 ordinary shares of £0.001 per share in the Company’s capital (hereinafter referred to as We would like to announce that we have newly issued “common stock”. Our 2022 Annual Meeting.
The new ordinary shares will be ranked on par with existing ordinary shares on issue and an application has been made to be admitted to the Official List of Shares and to be admitted to trading on the main market of the London Stock Exchange PLC.
Capital and total number of voting rights
In accordance with our obligations under Regulations 5.6.1R and 5.6.2G of the Disclosure Guidance and Transparency Regulations, the Company also announced that its share capital as at 31 March 2024 was 577,616,315 ordinary shares (ordinary shares) with a share capital of £0.001 per share. ) will be announced. stock). All common stock has equal voting rights and no stock is held by the Treasury.
Shareholders may use the above figures as a denominator in calculations to determine whether they are required to notify their interests in the company or changes in their interests under the FCA Disclosure Guidance and Transparency Regulations. Masu.
Inside information and forward-looking statements
This announcement contains inside information and contains forward-looking statements that reflect the Company’s current views, interpretations, beliefs or expectations regarding the Company’s financial performance, business strategy, future business plans and objectives. I am. These statements include forward-looking statements regarding both our company and the sectors and industries in which we operate. “confident”, “expects”, “intends”, “plans”, “believes”, “plans”, “anticipates”, “intends” “to be”, “to aim”, “to aim at”, “may”, “would”, “could”, “continue”, “estimate”, “future”, “opportunity”, “Possible” or, in each case, the negative thereof, and similar statements of a future or forward-looking nature identify the future. The statement you are looking for. All forward-looking statements involve risks and uncertainties because they relate to events that may or may not occur in the future, including the risk that we may receive anticipated benefits from transactions with Galaxy. We are dealing with matters. We may not be able to secure sufficient additional funds to meet our operating needs and we may not be able to generate sufficient working capital to fund our operations for the next 12 months as planned. Forward-looking statements are not guarantees of future performance. Accordingly, there are or may be important factors that could cause our actual results, prospects and achievements to differ materially from those expressed in these statements. In addition, even if our actual results, prospects and performance are consistent with the forward-looking statements contained herein, those results may not be indicative of results in subsequent periods. These forward-looking statements speak only as of the date of this announcement. Subject to our obligations under the Prospectus Regulation Regulations, Market Abuse Regulations, Listing Regulations and Disclosure and Transparency Regulations, except as required by the FCA, the London Stock Exchange, the City Ordinance or applicable laws and regulations, we does not assume any obligation. A public obligation to update or review forward-looking statements, whether as a result of new information, future developments or otherwise. For further information on the factors that could cause our actual results to differ from those stated in this announcement, please refer to the filings we make from time to time with the Securities and Exchange Commission and the Financial Conduct Authority. please. This includes the section entitled “Risk Factors” in the Company’s Annual Report on Form 20-F.
For more information, please contact us below.
About Argo:
Argo Blockchain plc is a dual-listed (LSE:ARB);(NASDAQ:ARBK) blockchain technology company focused on large-scale cryptocurrency mining. With mining operations in Quebec and Texas, and offices in the United States, Canada and the United Kingdom, Argo’s global and sustainable operations are primarily powered by renewable energy. In 2021, Argo became the first climate-positive crypto mining company and a signatory to the Cryptocurrency Climate Agreement. For more information, please visit www.argoblockchain.com.
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sauce: Argo Blockchain PLC
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