Press Release
28 March
2024
Argo Blockchain
plc
("Argo"
or "the Company")
Closing
on Sale of Mirabel,
Quebec Data Center
Allotment of New
Shares
Share Capital and Total
Voting Rights
Argo Blockchain plc (LSE: ARB;
Nasdaq: ARBK), a global leader in cryptocurrency mining, is pleased
to announce that it has closed on the previously announced sale of
its data center located in Mirabel, Quebec (the "Mirabel Facility")
for total consideration of $6.1 million (the
"Transaction").
The net proceeds from the
Transaction were used to first repay the Mirabel Facility's
outstanding mortgage of $1.4 million, with the remainder used to
repay debt owed to Galaxy Digital Holdings, Ltd. ("Galaxy") (TSX:
GLXY). As of 28 March 2024, reflecting the payment made to Galaxy
from the proceeds of the Transaction and inclusive of the ordinary
course monthly amortisation payment for March, the Galaxy debt
balance is $12.8 million. This is a 63% reduction from the original
Galaxy debt balance of $35.0 million.
Unaudited Debt
Balances:
|
$
in millions
|
Interest
Rate
|
9/30/2023
|
12/31/2023
|
Q1'24 Debt
Reduction
|
3/28/2024
|
|
Senior Notes
|
8.75%
|
$40.0
|
$40.0
|
-
|
$40.0
|
|
Galaxy Debt
|
SOFR + 11%
|
27.2
|
23.5
|
(10.7)
|
12.8
|
|
Mirabel 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, the Transaction enables
the Company to delever the balance sheet with minimal impact to the
Company's revenue. The Company has completed the relocation and
deployment of mining machines from the Mirabel Facility to its
facility in Baie Comeau, Quebec, and the Company expects this
consolidation to reduce its non-mining operating expenses by $0.7
million per year.
Management Commentary
Argo's Chief Executive Officer,
Thomas Chippas, said, "I am pleased to announce the closing of this
Transaction, through which the Company continues to execute on its
strategy of strengthening the balance sheet and reducing non-mining
operating expenses. The Company reduced its debt by $12.4 million
in Q1 2024. Additionally, consolidating our Quebec fleet at the
Baie Comeau facility allows us to streamline operations and make
the most efficient use of the facility and onsite team."
Allotment of New Shares
Additionally, the Company announces
that it has issued 460,477 new ordinary shares of £0.001 each in the capital of
the Company ("Ordinary Shares") pursuant to the terms of
previously granted Restricted Share Units under the 2022 Equity
Incentive Plan approved by shareholders at the Company's 2022
Annual General Meeting.
The new Ordinary Shares rank pari
passu with the existing Ordinary Shares in issue, and application
has been made for the shares to be admitted to the Official List
and to trading on the Main Market of the London Stock Exchange
PLC.
Share Capital and Total Voting Rights
The Company also announces, in
compliance with its obligations under Rules 5.6.1R and 5.6.2G of
the Disclosure Guidance and Transparency Rules, that as at 31
March 2024, the Company's share capital will consist of 577,616,315
ordinary shares of £0.001 each (Ordinary
Shares). All of the Ordinary Shares have equal voting rights and
there are no shares held in Treasury.
The above figure may be used by
shareholders as the denominator for the calculations by which they
can determine whether they are required to notify their interest
in, or a change of their interest in, the Company under the FCA
Disclosure Guidance and Transparency Rules.
Inside Information and Forward-Looking
Statements
This announcement contains inside
information and includes forward-looking statements which reflect
the Company's current views, interpretations, beliefs or
expectations with respect to the Company's financial performance,
business strategy and plans and objectives of management for future
operations. These statements include forward-looking statements
both with respect to the Company and the sector and industry in
which the Company operates. Statements which include the words
"remains confident", "expects", "intends", "plans", "believes",
"projects", "anticipates", "will", "targets", "aims", "may",
"would", "could", "continue", "estimate", "future", "opportunity",
"potential" or, in each case, their negatives, and similar
statements of a future or forward-looking nature identify
forward-looking statements. All forward-looking statements address
matters that involve risks and uncertainties because they relate to
events that may or may not occur in the future, including the risk
that the Company may receive the benefits contemplated by its
transactions with Galaxy, the Company may be unable to secure
sufficient additional financing to meet its operating needs, and
the Company may not generate sufficient working capital to fund its
operations for the next twelve months as contemplated.
Forward-looking statements are not guarantees of future
performance. Accordingly, there are or will be important factors
that could cause the Company's actual results, prospects and
performance to differ materially from those indicated in these
statements. In addition, even if the Company's actual results,
prospects and performance are consistent with the forward-looking
statements contained in this document, 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 any obligations under the Prospectus Regulation Rules, the
Market Abuse Regulation, the Listing Rules and the Disclosure and
Transparency Rules and except as required by the FCA,
the London Stock Exchange, the City Code or applicable law and
regulations, the Company undertakes no obligation publicly to
update or review any forward-looking statement, whether as a result
of new information, future developments or otherwise. For a more
complete discussion of factors that could cause our actual results
to differ from those described in this announcement, please refer
to the filings that Company makes from time to time with
the United States Securities and Exchange Commission and
the United Kingdom Financial Conduct Authority, including the
section entitled "Risk Factors" in the Company's Annual Report on
Form 20-F.
For further information please
contact:
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
US, Canada, and the UK, Argo's global, sustainable
operations are predominantly powered by renewable energy. In 2021,
Argo became the first climate positive cryptocurrency mining
company, and a signatory to the Crypto Climate Accord. For more
information, visit www.argoblockchain.com.
