Crypto mining firm, Argo Blockchain, has asked for the resumption of trading of its ARB shares on the London Stock Exchange (LSE). Argo made this appeal days after the UK Financial Conduct Authority (FCA) suspended it.
A few days back, Argo disclosed a decline in its November revenue, and reports suggested the Bitcoin mining firm might be filing for Chapter 11 bankruptcy. This led to a temporal suspension of Argo’s share listing by the FCA.
Announcing this in a Twitter post, Argo stated it had requested FCA to restore the listings of its ordinary shares and the firm hopes this will happen as soon as possible.
An update by Argo stated the firm was at risk of insufficient funds to support ongoing operations for next month. Hence, the company is in advanced negotiations with a third party to sell some of its assets and engage in equipment financing transactions. Argo believes this will strengthen its balance sheet and improve liquidity.
According to a statement by the company,
“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.”
Argo stated it had engaged McDermott Will and Emery LLP as legal advisors, Berkeley Research Group, LLC as financial advisers, and Stifel GMP and its affiliate, Miller Buckfire & Co., LLC, as investment bankers. They will help in analysing the strategic options the company has.
As part of the process, some materials were accidentally published as a test page on Argo’s website. These materials suggested that the company was filing for Chapter 11 bankruptcy, which led to the suspension of its securities trading on the LSE and Nasdaq on December 9.
Argo told stakeholders that the company has not filed for bankruptcy. It is working to avoid filing for it, although there is no assurance that it might prevent such from happening.
