Argo Blockchain PLC, an international front-runner in cryptocurrency mining (listed on LSE as ARB and on NASDAQ as ARBK), has revealed the successful pricing for the non-pre-emptive placement of new ordinary shares (each valued at £0.001) in the company’s capital (“Ordinary Shares”), following an announcement made the previous day (“the Placing”).
Tennyson Securities (operating under Shard Capital Partners LLP) (“Tennyson”) has placed a total of 51,340,000 new Ordinary Shares (“the Placing Shares”) with institutional investors at a pre-disclosed price of 10 pence per Placing Share (“the Placing Price”), thereby raising gross proceeds of around £5.134 million.
Simultaneously, a separate offer made to retail investors via the PrimaryBid platform resulted in a subscription of 6,160,000 new Ordinary Shares (“the Retail Offer Shares”) at the Placing Price (“the Retail Offer”), securing additional gross proceeds of approximately £616,000.
Collectively, the Placing and Retail Offer (“the Capital Raise”) drew oversubscription from both new and existing shareholders. The overall Capital Raise comprised of 57,500,000 new Ordinary Shares and is expected to generate gross proceeds of about £5.75 million. The Placing Price signifies a discount of roughly 14% to the 30 trading day VWAP and a discount of 25.92% to the closing mid-price of the company’s ordinary shares as of 18 July 2023. The issued shares, comprising Placing Shares and Retail Offer Shares (“the New Ordinary Shares”), represent an estimated 12.03% of the existing ordinary share capital prior to the Capital Raise.
The company has made applications to the Financial Conduct Authority (“FCA”) and London Stock Exchange plc (“LSE”) for admission of the New Ordinary Shares to the standard listing segment of the FCA’s Official List and to trade on the LSE’s main market for listed securities (“Admission”). The expectation is that Admission will become effective by or before 8.00 a.m. on 24 July 2023, subject to the Placing agreement between Tennyson and the company remaining intact per its terms.
Upon issue, the New Ordinary Shares will be fully paid and will rank pari passu in all respects with the existing Ordinary Shares, including the right to receive all dividends and other distributions declared, made or paid post-issue.
Subsequent to Admission, the company’s total number of Ordinary Shares will stand at 535,325,166. Given that the company holds no treasury shares, the total voting rights in the company post-Admission will also be 535,325,166. Shareholders can use this figure as the denominator for calculations determining if they need to disclose their interest in, or changes to their interest in, the company as per the FCA’s Disclosure Guidance and Transparency Rules.
