NEW YORK, January 28, 2023 /PRNewswire/ — Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against Argo Blockchain plc (“Argo” or the “Company”) (NASDAQ: ARBK, ARBKL) and recalls to investors the March 27, 2023 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you have incurred losses exceeding $100,000 invest in Argo Shares or Options between (a) Argo American Depository Shares (“ADS”) pursuant to and/or traceable to the Offering Documents (defined below) issued in connection with the Initial Public Offering of the Company carried out on or about September 23, 2021 (the “IPO” or the “Offer”); and/or (b) Argo securities between September 23, 2021 and October 10, 2022both dates inclusive (the “Class Period”). and want to discuss your legal rights, call partner Faruqi & Faruqi Josh Wilson directly at 877-247-4292 or 212-983-9330 (ext. 1310). You can also click here for more information: www.faruqilaw.com/ARBK.
There is no cost or obligation for you.
Faruqi & Faruqi is a leading national minority and women-owned securities law firm, with offices in New York, Pennsylvania, California and Georgia.
Argo, together with its affiliates, claims to engage in cryptocurrency mining activity around the world, including the exploitation of Bitcoin or Bitcoin equivalents (together, “BTC”).
Argo maintains a fleet of thousands of BTC mining machines in facilities located around Canada and Dickens County, Texas. From the company Texas the facility is referred to as its “Helios” facility.
At August 19, 2021Argo has filed a registration statement on Form F-1 with the United States Securities and Exchange Commission (“SEC”) in connection with the IPO, which, after several amendments, has been declared effective by the SEC on September 22, 2021 (the “Registration Statement”).
At September 23, 2021Argo filed a prospectus on Form 424B4 with the SEC in connection with the IPO, which incorporated and formed part of the registration statement (the “Prospectus” and, together with the Registration Statement, the “Documents of offer”).
On or about September 23, 2021pursuant to the offering documents, Argo proceeded with the IPO, issuing 7.5 million ADS to the public at the offering price of $15 per ADS for an approximate product of $105 million to the Company before fees and after applicable discounts and underwriting commissions.
The complaint alleges that the offering documents were negligently prepared and, as a result, contained misrepresentations of material facts or failed to state other facts necessary to ensure that the statements made were not misleading and did not been prepared in accordance with the rules and regulations governing their preparation. . In addition, throughout the Class Period, Defendants have made materially false and misleading statements regarding the Company’s business, operations and prospects. Specifically, the Offering Documents and the Defendants made false and/or misleading statements and/or failed to disclose that: (i) Argo was highly sensitive and/or suffered from significant capital constraints, electricity and other, and network difficulties; (ii) the foregoing issues have impaired, among other things, Argo’s ability to mine BTC, execute its business strategy, meet its obligations and operate its Helios Facility; (iii) as a result, Argo’s business was less sustainable than defendants had led investors to believe; (iv) as a result, Argo’s business and financial prospects were exaggerated; and (v) as a result, the Offer Documents and the Defendants’ public statements throughout the Class Period were materially false and/or misleading and did not contain the information that should be contained therein.
At June 7, 2022Argo issued a press release providing an operational update, in which it revealed that it had mined around 25% less BTC in May 2022 compared to April 2022 due to, among other things, increased grid difficulties, rising electricity prices and reduced mining operations at its Helios facility.
At this news, the price of Argo’s ADS plummeted $0.28 per ADS, i.e. 4.4%, to close at $6.09 by ADS on June 7, 2022.
At October 7, 2022Argo issued a press release “announcing[ing] several strategic actions aimed at bringing additional capital to the business and ensuring that the Company has the necessary working capital to execute its current strategy and meet its obligations over the next twelve months. Argo said that in addition to measures taken to reduce costs and preserve capital, the company has signed a non-binding letter of intent with a subsidiary of New York Digital Investment Group to modify an existing equipment financing agreement. , plans to sell 3,400 mining machines for cash proceeds of £6 million and intends to raise approximately £24 million via a proposed subscription from a strategic investor.
At this news, the price of Argo’s ADS plummeted $0.97 per ADS, i.e. 23.26%, to close at $3.20 by ADS on October 7, 2022.
Then, on October 11, 2022Argo issued a press release providing an operational update, in which it announced that “[d]uring the month of September, Argo mined 215 [BTC] against 235 BTC in August 2022which was “primarily due to a 12% increase in average network difficulty in September.” Argo also said it “continues to reduce operations at its Helios facility to Dickens County, Texas during periods of high electricity prices” and replaced the company’s Chief Technology Officer.
At this news, the price of Argo’s ADS plummeted $0.27 per ADS, i.e. 10.98%, to close at $2.19 by ADS on October 11, 2022.
At the time of filing the complaint, Argo’s ADS continued to trade below the $15 per ADS offer price, detrimental to investors.
The court-appointed lead plaintiff is the investor with the greatest financial interest in the relief sought by the class that is adequate and typical of the class members directing and supervising the litigation on behalf of the putative class. Any putative class member may ask the Court to serve as lead plaintiff through counsel of their choosing, or may choose to do nothing and remain an absent class member. Your ability to participate in any collection is not affected by whether or not to serve as lead plaintiff.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Argo’s conduct to contact the company, including whistleblowers, former employees, shareholders and others.
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