Cryptocurrency mining company Argo Blockchain plc today warned it is at risk of having insufficient cash to support ongoing business operations within the next month.
The company says it 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.
Argo Blockchain stated that it 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.
The company engaged McDermott Will & Emery LLP as legal advisers, Berkeley Research Group, LLC as financial advisers, and Stifel GMP and its affiliate, Miller Buckfire & Co., LLC, as investment bankers, to assist the company with analysing these strategic options.
Interestingly, Argo Blockhain said that certain draft materials were inadvertently published as a test page on the company’s website. The inadvertently published materials, which implied that the company was filing for Chapter 11 bankruptcy, led to the suspension of trading of the Company’s securities on the London Stock Exchange and Nasdaq on Friday, 9 December 2022.
According to Argo Blockchain, the company has not filed for bankruptcy at this time.
The company has requested that the UK Financial Conduct Authority restore the listing of its ordinary shares.
