Argo Blockchain plc (LON:ARB) today provided an update on its current financial position.
To date, the liquidity position of the company and its subsidiaries (“Group”) remains critically constrained. Prior to the entry into the loan facility with Growler, the Group’s available cash was limited to approximately US$753,000 as at 7 September 2025.
The Group has continued to incur operating losses since September 2025 and is primarily being supported by the Growler facility.
The Group urgently requires an injection of new money and the creation of a stable financial platform to be able to meet the fixed and variable costs payable to its critical unsecured creditors and other creditors of the Group to be able to continue as a going concern.
It is intended that that the Restructuring Plan will resolve these issues and return the company to a stable footing.
The Company has called a general meeting of shareholders for 2.30 p.m. on 2 December 2025. This meeting is in addition to the meeting of shareholders convened by the Court to consider the Restructuring Plan. The General Meeting will consider and, if thought fit, approve a waiver of Rule 9 of the Takeover Code, such approval being a condition of the Restructuring Plan.
The implementation of the Restructuring Plan will result in Growler acquiring interests in shares carrying more than 30% of the Company’s voting rights. Under the Takeover Code, Growler’s acquisition would trigger an obligation on Growler to make a mandatory offer to the remaining shareholders in Argo.
The Restructuring Plan proposes a comprehensive recapitalisation and balance-sheet restructuring of Argo Blockchain plc designed to stabilise the Company’s financial position, resolve secured and unsecured liabilities, and position the Group for sustainable growth.
Key terms of the Restructuring Plan include:
- Secured Debt Conversion: the full equitisation of Growler’s secured debt into new ordinary shares (to be held as American Depositary Shares), together with release of its existing liens and security interests across UK, US, and Canadian subsidiaries.
- Noteholder Treatment: the exchange of the 8.75% Senior Notes due 2026 (ARBKL) for a pro rata allocation of 10% of the enlarged issued share capital of the Company.
- Equity holders: the holders of the current issued share capital (including those who hold ordinary shares in the form of American Depositary Shares) will see their aggregate interest in the Company diluted to 2.5% of the enlarged issued share capital.
- Corporate and Listing Structure: delisting of the Company’s shares from the London Stock Exchange while intending to maintain its Nasdaq listing, subject to compliance with applicable listing criteria, with an updated ADR ratio from 1 ADR = 10 ordinary shares to a ratio of 1 ADR = 2,160 ordinary shares post-recapitalisation.
Upon completion of the Restructuring Plan in December 2025, Growler will receive its 87.5% interest in equity interests in the Company in exchange for the following: (i) its secured loans to the Company, which are anticipated to have been fully drawn in an aggregate amount of US$7.5 million, (ii) its contributed exit capital of US$3.5 million, and (iii) its contributed assets with an estimated book value of between US$25 million and US$30 million.
The Relevant Alternative analysis concluded that, if the Restructuring Plan were not implemented, the enterprise value of the Company would be approximately US$8 million with a 0.72% recovery to unsecured creditors (including noteholders), with no recovery to shareholders and a 100% recovery for Growler, as secured creditor.
The Valuation and Plan Benefits analysis determined a going-concern enterprise-value range of approximately US$30.5 million – US$35.3 million and a derived equity-value range of approximately US$25.3 million – US$30.1 million, indicating that the Company’s value as a going concern is higher than in the liquidation scenario and that accordingly Plan Participants would be no worse off under the Restructuring Plan.
