Argo Blockchain plc Form 6-K Summary
Business Context and Reporting Period
Argo Blockchain plc, a UK-based cryptocurrency mining company listed on the London Stock Exchange and Nasdaq, filed this Form 6-K for November 2021. The filing reports the pricing of a public offering of senior unsecured notes dated November 15, 2021.
Key Financial and Capital Markets Information
- Offering: $40.0 million aggregate principal amount of 8.75% senior unsecured notes due 2026.
- Expected net proceeds: Approximately $38.6 million after underwriting discounts and commissions, but before other fees and estimated expenses.
- Potential increase: Underwriters received a 30-day option to purchase up to an additional $6.0 million aggregate principal amount of notes.
- Credit rating: The company and the notes received a “B” rating from Egan-Jones Ratings Company.
- Denominations: Minimum denominations of $25 and integral multiples of $25 thereafter.
- Debt and liquidity: The offering would increase Argo’s unsecured debt obligations and provide approximately $38.6 million of intended financing proceeds. The filing does not provide total debt, cash balances, liquidity ratios, interest expense, revenue, profit, cash flow, or margins.
Use of Proceeds and Material Changes
Argo intends to use the proceeds for general corporate purposes, construction of and purchases of mining machines for its Texas cryptocurrency mining facility, and potentially acquisitions of or investments in complementary cryptocurrency and blockchain businesses.
The filing does not provide a prior comparable-period financial statement or quantify changes in revenue, profitability, cash flow, operating performance, or margins. The material reported change is the planned issuance of new senior unsecured notes.
Outlook, Risks, and Unusual Items
- The offering was expected to close on November 17, 2021; the filing does not confirm closing.
- Argo applied to list the notes on Nasdaq under the symbol “ARBKL.” If approved, trading was expected to begin within 30 business days after issuance.
- Completion of the offering could be affected by market conditions and might not occur on the anticipated terms or at all.
- Use of proceeds depends on Argo’s ability to acquire mining machines on acceptable terms and complete the build-out of its Texas facility.
- Potential acquisitions or investments depend on the company’s ability to identify suitable targets.
- The notes are senior unsecured obligations, and the filing does not describe collateral, covenants, redemption provisions, or other final terms. It states that final terms would be disclosed in a final prospectus supplement.
- The press release contains forward-looking statements subject to cryptocurrency-market, execution, financing, acquisition, and facility-development risks.
Important Facts for Investors to Verify
- Whether the offering closed on November 17, 2021 and the final principal amount issued, including any exercise of the underwriters’ option.
- The final prospectus supplement, including covenants, redemption terms, ranking, events of default, and other note terms.
- Whether the notes were approved and listed for trading on Nasdaq under “ARBKL.”
- Argo’s total debt, cash position, liquidity, and ability to service the 8.75% notes through maturity in 2026.
- Progress, capital requirements, and operating economics of the Texas mining facility.
- Actual allocation of proceeds among general corporate purposes, mining equipment, facility construction, and potential acquisitions.