Argo Blockchain (ARB) has raised 5.7 million British pounds ($7.5 million) through the sale of new shares. The sale was comprised of a private placing that raised 5.134 million pounds and a public sale that raised 616,000 pounds. The funds will be used to reduce the company’s outstanding debt of 59.1 million pounds. The number of shares sold represent about 12% of the company’s pre-sale market cap at a price of 10 pence per share, a discount of around 14% to the 30-day volume-weighted average price (VWAP) of Argo stock.
In April, the London-based company reported a full-year net loss of 194.2 million pounds compared with net income of 30.8 million pounds the year before, due to the sharp drop in the value of Bitcoin (BTC). To avoid bankruptcy, Argo agreed to sell its Helios mining facility in Dickens Country, Texas, to Galaxy Digital for $65 million and also agreed a $35 million loan from the Michael Novogratz crypto-focused financial-services firm, secured by its mining equipment.
At the time of writing, ARB shares are down more than 20% at 10.74 pence.