Cryptocurrency mining company Argo Blockchain PLC is facing potential bankruptcy after its shares were suspended from trading on the London Stock Exchange and Nasdaq in New York.
The company said it is at risk of having insufficient cash to support ongoing business operations within the next month and is in advanced negotiations with a third party to sell certain assets and engage in an equipment financing transaction.
It said it is hopeful that this will improve its liquidity and avoid a voluntary Chapter 11 bankruptcy filing in the United States, where it is also listed, adding “there is no assurance that the company can avoid such a filing”.
The company has engaged McDermott Will & Emery LLP as legal advisers, Berkeley Research Group LLC as financial advisers and Stifel GMP and its affiliate, Miller Buckfire & Co. LLC, as investment bankers.
“As part of this process, certain draft materials were inadvertently published as a test page on the company’s website,” read a statement. “The inadvertently published materials, which implied that the company was filing for Chapter 11 bankruptcy, led to the suspension of trading of the company’s securities on the London Stock Exchange and Nasdaq on Friday 9th December 2022.
“Shareholders should note that the company has not filed for bankruptcy at this time. The company has requested that the UK Financial Conduct Authority restore the listing of its ordinary shares and that is expected to happen as soon as practicable.”
At the time of writing (7am UK), the trading of Argo’s shares remains suspended.