Argo Blockchain announced it has entered a non-binding term sheet for $40 million in financing. The financing is structured with an initial $15 million tranche, followed by up to $25 million over 18 months. These loans carry an 8% interest rate and a 25% conversion premium.
The funds are intended to refresh the company's Quebec mining fleet, strengthen its balance sheet, and explore potential mergers and acquisitions. The investor group, which includes up to three multinational institutions, will gain three board seats, and the deal requires shareholder approval and regulatory waivers.
Argo granted investors a 20-day exclusivity period and agreed to a $150,000 break fee under certain conditions. This potential financing is a critical step towards improving financial stability and enabling strategic growth initiatives.
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