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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NEGATIVE IMPACT
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.
CONFIDENCE 90
IMPORTANCE 75
RELEVANCE 100