Argo To Face Negative Cashflow Due to Failed $27M Financial Plan
Argo To Face Negative Cashflow Due to Failed $27M Financial Plan
- Argo Blockchain’s $27 million financial plan has failed.
- The company sold 3,843 S19J Pros for $5.6m.
- Argo to experience negative cash flow or potentially cease operations.
Cryptocurrency miner Argo Blockchain PLC announced company updates on October 7, 2022. The company has earlier revealed signing a non-binding LOI with a strategic investor with the aim to fund $27 million through an ordinary shares subscription.
However, Argo is now exploring other financial options due to doubts about the subscription following the previously agreed terms. In an attempt to maximize liquidity and preserve cash, the company has sold 3,843 new-in-box Bitmain S19J Pro machines for roughly $5.6 million.
Even though Argo is currently browsing its financial options, failing to consummate any contract or transaction can lead to negative cash flow for the mining company. To prevent ceasing operations, Argo is currently seeking financial funding that can enable the company enough working capital to last the incoming twelve months at present requirements.
The statement released by Argo reflects the views of the company as well as the Director’s current expectations and beliefs regarding Argo’s financial performance, business strategy, plans, and management goals for the future.
Using phrases including “remains confident”, “expects”, “intends”, “plans”, “believes”, “projects”, “anticipates”, “will”, “targets”, “aims”, “may”, “would”, “could”, “continue”, “estimate”, “future”, “opportunity”, “potential” represent the forward outlook of the company towards the industry and acknowledge the risks and uncertainties that may emerge in future.
While the forward-looking statements are not promises of better future performance, the announcement reassures that the company’s actual results may differ from those expressed in the published statement.
Argo clarifies it is not obligated to update any forward-looking statement in the event of new information or future developments 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.
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