Argo Blockchain Has Raised £7.8M ($9.9M) By The Issue Of 38.064M New Shares At £0.205/Share To Certain Institutional Investors, Equivalent To Around 7.06% Of The Existing Issued Ordinary Share Capital Of The Company Before The Placing
Portfolio Pulse from Benzinga Newsdesk
Argo Blockchain has successfully raised £7.8M ($9.9M) through the issuance of 38.064 million new shares at a price of £0.205 per share. This placement represents approximately 7.06% of the company's existing issued ordinary share capital prior to the placement, and was directed towards certain institutional investors.
January 08, 2024 | 8:29 am
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Argo Blockchain's recent share issuance at £0.205/share has raised £7.8M, diluting existing shareholders by 7.06%.
The issuance of new shares typically dilutes the value of existing shares, which can lead to a short-term negative impact on the stock price. Given that the placement represents a significant 7.06% of the pre-placement share capital and is aimed at institutional investors, it suggests a notable dilution effect. However, the capital raised could be used for growth initiatives, which might offset some of the negative sentiment in the longer term.
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