REG - Argo Blockchain PLC - Closing on Sale of Mirabel / TVR

Argo BlockchainAnnouncement

28/03/2024 07:00

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RNS Number : 5987I  Argo Blockchain PLC  28 March 2024

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:

 Argo Blockchain
 Investor Relations                  ir@argoblockchain.com (mailto:ir@argoblockchain.com)
 Tennyson Securities
 Corporate Broker                    +44 207 186 9030

 Peter Krens
 Fortified Securities
 Joint Broker                        +44 74930989014

 Guy Wheatley, CFA                   guy.wheatley@fortifiedsecurities.com
                                     (mailto:guy.wheatley@fortifiedsecurities.com)
 Tancredi Intelligent Communication   argoblock@tancredigroup.com (mailto:argoblock@tancredigroup.com)

 UK & Europe Media Relations

 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 (http://www.argoblockchain.com/) .

 

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