Argo Blockchain announced late Monday that it has requested that the UK Financial Conduct Authority (FCA) restores the listing of its shares, and that is “expected to happen as soon as practicable.”
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The struggling Bitcoin miner’s shares were suspended from trading on the London Stock Exchange Friday morning. While there were no details provided on the reason for the suspension, the FCA’s website says it may take the decision to temporarily suspend shares for a number of reasons (Page 2).
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Argo explained that the reason for the suspension was that “certain draft materials,” which implied that it was filing for Chapter 11 bankruptcy, were accidentally published as a test page on its website. The materials were part of its process for analysing its strategic options, the company said.
“Shareholders should note that the company has not filed for bankruptcy at this time,” Argo said.
However, while the company has requested the listing of its shares be restored, its outlook is still bleak, as it revealed in the same announcement that it is at risk of having insufficient cash to support ongoing business operations within the next month.
The company said it is currently in advanced negotiations with a third party to sell certain assets and engage in an equipment financing transaction that it 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,” said Argo, who has 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 with analysing its strategic options.
Argo Blockchain's London-listed shares are currently down 47% at 3.5p.
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.