NEW YORK, NY / ACCESSWIRE / November 5, 2022 / Pomerantz LLP is investigating claims on behalf of investors ofArgo Blockchain plc, Inc. ("Argo" or the "Company") (NASDAQ: ARBK). Such investors are advised to contact Robert S. Willoughby at [email protected]or 888-476-6529, ext. 7980.
The investigation concerns whether Argo and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
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On or around September 22, 2021, Argo conducted its initial public offering ("IPO"), selling 7.5 million American Depositary Shares ("ADSs") priced at $15.00 per ADS.
On October 7, 2022, Argo issued a press release "announc[ing] several strategic actions that are intended to bring in additional capital to the business and ensure that the Company has the working capital necessary to execute its current strategy and meet its obligations over the next twelve months." Argo stated that in addition to measures being undertaken to reduce costs and preserve capital, Argo has signed a non-binding letter of intent with an affiliate of New York Digital Investment Group to amend 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 proposed subscription with a strategic investor.
On this news, Argo's ADS price fell $0.97 per ADS, or 23.26%, to close at $3.20 per ADS on October 7, 2022.
Then, on October 11, 2022, Argo issued a press release providing an operational update, in which it announced that "[d]uring the month of September, Argo mined 215 Bitcoin or Bitcoin Equivalents (together, BTC) compared to 235 BTC in August 2022. The decrease in BTC mined is primarily due to a 12% increase in average network difficulty during September. Additionally, the Company is continuing to curtail operations at its Helios facility in Dickens County, Texas during periods of high electricity prices."
On this news, Argo's stock price fell $0.27 per share, or 10.9%, to close at $2.19 per share on October 11, 2022.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.
SOURCE: Pomerantz LLP