Argo Blockchain PLC (LSE:ARB, OTCQX:ARBKF, NASDAQ:ARBK, ETR:0XP) shares fell in Tuesday’s early deals as they resumed trading, following concerns and miscommunication over the company’s financial position.
The company, in a statement, said that it inadvertently published a test page on the company’s website which implied that the company was filing for Chapter 11 bankruptcy. That communication led to the suspension of trading in London and on the Nasdaq on Friday.
“Shareholders should note that the company has not filed for bankruptcy at this time,” Argo said today.
It did note, meanwhile, that there is a risk that the company will have insufficient cash to support its ongoing business operations within the next month. However, it is in advanced negotiations with a third party to sell certain assets and engage in an equipment financing transaction.
Argo said it believes such a transaction will strengthen its balance sheet and improve its liquidity.
“The company is hopeful that it will be able to consummate the transaction outside of a voluntary Chapter 11 bankruptcy filing in the United States, although there is no assurance that the company can avoid such a filing,” it added.
Argo has hired McDermott Will & Emery LLP as legal advisers, Berkeley Research Group as financial advisers, and Stifel GMP and its affiliate, Miller Buckfire & Co as investment bankers. The appointments were made to assist the company in analysing its strategic options.
In London, Argo shares fell 45% to trade at 3.56p on Tuesday morning.
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