Following the acquisition of a $40 million investment, Argo Blockchain shares increased by 16%. Toncoin (TON) Value Forecast for March 26th
After the firm signed a non-binding term sheet for a senior secured convertible loan for up to $40 million, Argo Blockchain’s share value increased by 16%.
After securing a financing arrangement for a senior secured convertible loan for up to $40 million, Argo Blockchain’s stock value has grown by more than 15%.
The business announced in a press release on March 3 that it had signed a non-binding term sheet on February 25 with an initial tranche of $15 million and a possible increase of $25 million over 18 months. Argo Blockchain intends to improve its Bitcoin mining fleet in Quebec, Canada, strengthen its balance sheet, and explore mergers and acquisitions with this funding.
The loans, according to the press release, have an interest rate of 8% and a conversion premium of 25% based on Argo Blockchain’s pre-signing share value. At a higher price, investors will also receive warrants equal to 30% of the loan amount. While it is unknown who supported the funding, the cryptocurrency mining behemoth stated that the transaction was supported by up to “three multinational institutional investors.” They will receive three board seats once the agreement is completed and approved by shareholders.
The financing is projected to be funded by up to three multinational institutional investors and will include 30% warrant coverage, also above the closing price. The investor group will have three seats on the board upon completion of the final documentation and subject to shareholder approval.
Argo Blockchain
Argo Blockchain Chairman Matt Shaw remarked on the funding, stating that the agreement would “enable Argo to achieve profitable growth and strengthen our balance sheet.” According to Yahoo Finance, the company’s share value increased 16% to $0.45 in pre-market trading following the news. TruBit Collaborates with Morpho to Introduce DeFi Unearned Revenue in Latin America
